Vietnam’s first tech unicorn VNG aims to return profitable in 2024

VNG Corp, the first tech unicorn in Vietnam, targets a net profit of VND150 billion ($5.9 million) this year, a significant turnaround from the 2023 loss of VND2.3 trillion ($90.45 million).

This year, the game developer, backed by Chinese giant Tencent Holdings, is aiming for VND11 trillion ($432.6 million) in revenue, up 46% from the 2023 performance.

The firm plans to issue 641,000 shares at VND30,000 ($1.18) apiece through an employee stock ownership plan (ESOP) this year.

The intention was mentioned in the company’s plan for its upcoming VNG’s 2024 AGM, following the failure of an ESOP issuance scheme in 2023.

Notably, shares of VNG, featured on the Unlisted Public Company Market as VNZ, closed Thursday at VND550,600 ($21.65) apiece. This means that its staff will be able to purchase VNZ shares worth VND348 billion ($13.69 million) for only VND19.2 billion ($755,090). These shares will be restricted from transfer for one year, starting the third quarter of 2024.

The tech giant plans to continue investing in strategic segments and diversifying its services and products. These include e-wallets and payment portals, intellectual property for video games, data centers, smart cloud computing, and artificial intelligence services.

At the Asia Saigon Summit 2024, held in Ho Chi Minh City on May 30, VNG Corp’s general director Le Hong Minh stated that the firm had suspended its U.S. IPO filing due to unfavorable market conditions.