Vietnam’s VNG hits $261m revenue in 2020, but net profit slides

Vietnam-based tech unicorn VNG announced that its 2020 revenue reached US$261.5 million, but its net profit decreased to US$11.3 million from US$19.8 million in 2019.

A detailed financial report of its 2020 performance will be made publicly available soon, according to the company.

VNG Campus in Ho Chi Minh City / Photo credit: VNG

Formerly known as VinaGame, VNG is the country’s first tech unicorn and has a valuation estimated to be worth about US$2.2 billion. Besides gaming, its digital services spans across several verticals including social media (Zalo), online media (Zing News), financial services (ZaloPay), and cloud services (VNG Cloud).

VNG also owns a 22% stake in ecommerce player Tiki, 20% in logistics startup Ecotruck, and nearly 30% in gifting platform Got It.

See also: Zalo beats WhatsApp in Vietnam. It now wants to be the country’s top super app

In a press statement, the company says it remains “optimistic” about these results, given that many of its businesses were affected by the Covid-19 pandemic. The Vietnamese internet giant also notes that it’s currently investing heavily in new technologies for projects that require capital, such as ZaloPay and VNG Data Center, which is expected to be completed by the end of 2021.

In 2020, ZaloPay was ranked among the top 10 payment apps in Vietnam, both in terms of downloads and monthly active users, according data from App Annie. But it’s trailing far behind competitors such as MoMo and ViettelPay. To fuel its e-payment bid, VNG’s losses in ZaloPay have ballooned from about US$1.1 million in 2016 to US$12 million in the first half of 2020.

VNG has also been actively investing in other startups. It invested US$3.4 million in Ecotruck last year and injected US$6 million into Got It in March.

See also: Vietnam’s first unicorn is finally serious about its global gaming ambitions

For this year, VNG says it will continue focusing on its core businesses, including the overseas expansion of its game publishing division. In a previous interview with Tech in Asia, Kelly Wong, VNG’s vice president for operations, said the company wants to increase its publishing capabilities in Southeast Asia and explore potential markets in Latin America.