The company VNG, Vietnamese pioneer of online video games, is embarking on the ambitious quest to become a major global player in the industry, and to expand to other areas of Tech.
Founded in 2004 under the name “Vinagame”, VNG has managed to establish itself as the undisputed leader in online games in Vietnam. In 2014, it became the first Vietnamese tech company to reach a capitalization of $1 billion. Since then, it has become “VNG” and now aspires to conquer the global online gaming market. Its co-founder, Le Hong Minh, displays unwavering determination, aiming to make VNG a global player within three to five years. The next step ? Enter the Nasdaq, the American Stock Exchange.
In Vietnam, VNG reigns over online gaming, but not only
Today, VNG is present in Indonesia, Thailand, and in a slightly more confidential manner in China, a country we talk about later in the article. The company plans to expand its footprint in Latin America and the Middle East initially. It is also the saturation of the Vietnamese market which encouraged the group to seek new horizons.
For the co-founder of VNG, this expansion requires global visibility, also attracting capital and talent from around the world, to pursue a logical evolution that will allow it to remain competitive in the global industry. And to think that originally, Le Hong Minh traveled the Vietnamese roads to put up posters in the thousands of internet cafes in the country, to promote Vinagame, 20 years ago now.
You should know that in addition to online video games, VNG now plays a major role in the Cloud, in mobile payment but also in instant messaging, its other hobby. The group owns an application, Zalo, which is used by 75 million people in Vietnam. That’s three out of four residents. For comparison, Zalo has overtaken Facebook in the Southeast Asian country.
Despite the support of the juggernaut Tencent, VNG remains in the red today
If VNG generates 80% of its turnover from video games, the company has several strings to its bow and seems to have real capacity to adapt to market developments. Imagine that it counts the Chinese Internet and mobile services giant, Tencent, among its shareholders.
Despite this support, VNG remains in the red and fails to turn a profit. In 2022, the firm had lost $87 million. This year, in the first half, it reported a loss of $27.4 million. So, the company must overcome a challenge and not the least: continue its global expansion while making financial adjustments, so as not to widen its deficit further.
VNG has one last ace up its sleeve: its nationality. It would indeed seem that international markets are very attentive to initiatives coming from Vietnam. Proof of this is the recent entry of the automobile manufacturer Vinfast onto the Nasdaq, which now has points of sale in France. If VNG continues to expand and improve its skills, the future could look bright. And even though the company has postponed its listing on the American Stock Exchange while awaiting more favorable conditions, its co-founder remains convinced of the company’s long-term success. We will monitor this closely.
Source : The Japan Times
0