Vietnam’s tech unicorn VNG returns to profit in Q2 on steady gaming growth

Vietnamese tech unicorn VNG Corp (UPCoM: VNZ) returned to the black in the second quarter of 2025, supported by robust gaming revenue and tighter cost management.

VNG posted a net profit of VND15 billion ($572,570), rebounding sharply from a net loss of over VND500 billion ($19.09 million) in the same period last year, according to its Q2 earnings report.

Net revenue rose 25% year-on-year to VND2.57 trillion ($98.14 million), while gross profit reached VND956 billion ($36.5 million), up VND329 billion ($12.6 million) from Q2/2024.

The company contributed VND168 billion ($6.41 million) to the state budget during the quarter, supported by VAT incentives for high-tech firms.

Gaming remained VNG’s core growth driver, with total bookings reaching VND1.93 trillion ($73.5 million) in Q2, 17% of which came from overseas markets.

As part of its global push, the company plans to spin off its gaming business into a subsidiary, VNGGames, a move first revealed by chairman Le Hong Minh during the firm’s AGM in June.

Meanwhile, Zalo, VNG’s flagship messaging app, continued to dominate the Vietnamese market with a 98% usage rate, according to the Vietnam Mobile App Popularity 2025 report.

VNG is also stepping up investment in AI as part of its “Three Pillars” strategy. In collaboration with Vietnam National University in Ho Chi Minh City, the company has committed VND25 billion ($954,300) to AI research and talent development.

Despite the Q2 profit, VNG projects a full-year net loss of VND620 billion ($23.8 million), though that would mark a 47% improvement from 2024. It targets a 2025 revenue of VND10.77 trillion ($413.15 million), up 16.2% year-on-year.