VNG’s Ambitions and Challenges: A Long-Term Approach to Success

VNG’s financial investment reserve has seen a significant increase, from nearly VND3,650 billion at the beginning of the year to VND5,179 billion. This growth is likely attributed to the company’s investment in Zion, as mentioned in previous reports.

With a current capitalization of about 13 trillion VND (nearly 520 million USD), VNG’s market value is significantly lower than its peak of 2.3 billion USD.

Unfulfilled Ambitions and Challenges

Despite being a major technology force in Vietnam, VNG Corporation has not achieved many of its ambitious goals. The company failed to meet its loss reduction target in 2023 and was unable to list its shares on the US stock market to attract capital and drive further development.

VNG had initially planned to list internationally in 2023, following in the footsteps of billionaire Pham Nhat Vuong’s electric car company VinFast, which listed on the US Nasdaq. However, the company later withdrew its application.

Shareholder Structure and International Listing Plans

VNG Limited, a key shareholder of VNG Corporation, had filed a dossier with the US Securities and Exchange Commission (SEC) in August 2023. The company had planned to offer Class A common stock to the public on the Nasdaq Global Select Market, with the trading code VNG.

The shareholder structure of VNG Limited includes two Chinese technology giants, Tencent and Ant Group, as well as the Singaporean investment fund GIC. These entities hold a significant number of shares in VNG Limited, which in turn owns 49% of VNG Corporation.

Business Approach and Future Prospects

Unlike other companies, such as FPT Corporation, which has recorded strong increases in revenue and profit, VNG takes a longer-term approach to business. The company focuses on developing technology products that can drive long-term growth, even if they require significant investment and may not generate immediate profits.

Examples of such products include Zalo, Zalopay, and VNG Data Center. VNG has also been quick to adopt emerging technologies, such as artificial intelligence (AI), through its cooperation with Nvidia.

While the effectiveness of VNG’s big projects and ambitions is still to be seen, many investors remain optimistic about the company’s long-term prospects. Will VNG be able to overcome its current challenges and achieve its goal of “going global” in the next few years?