Vietnamese tech firm VNG is aiming for a return to growth this year, placing its bets on artificial intelligence and global expansion while reaffirming a steady approach to staffing amid broader industry cutbacks.

At its annual general meeting, VNG set a revenue target of 10.77 trillion dong (about US$423 million) for 2025, following a year of recovery. In 2024, the company reported consolidated revenue of 9.27 trillion dong (US$364 million) and an operating profit of 302 billion dong (US$11.9 million), reversing a loss of 23 billion dong (US$900,000) the previous year.

The company reported a 37% increase in gaming bookings, with monthly active users reaching 74.3 million. Zalo, its messaging platform, had 77.8 million users. Zalopay, VNG’s digital payments unit, saw transaction volume rise more than 15-fold, along with a 149% increase in revenue.

VNG is also accelerating its investment in AI. It recently launched GreenNode, a cloud infrastructure service, and developed KiLM, its own large language model akin to OpenAI’s GPT-4. Around 15 million Zalo users are now engaging with AI features daily, according to the company.

Chairman Le Hong Minh emphasized that VNG would focus its AI investments on infrastructure and applications tied directly to core products, rather than speculative ventures. “Our approach is careful and focused,” he said, noting that only a handful of companies globally have generated meaningful revenue from large language models to date.

The company also signaled no plans to cut jobs as a result of automation, pushing back against a broader industry trend. “AI is a tool to enhance productivity, not replace people,” Le said. He cited an internal case where customer support staff were reduced significantly through automation, even as user volume grew.

VNG is expanding its gaming division to markets such as Southeast Asia, the US, Taiwan, and Hong Kong, and has formed partnerships with firms including Riot Games, Roblox, Kingsoft, and NCSoft.

Zalopay has also added new features such as QR code payments and tuition payment services, with plans to expand its footprint abroad.

Founded in 2004, VNG now operates under the name VNG Group, reflecting a restructuring of the company’s operating model.

Its four main segments, gaming, Zalo & AI, fintech, and enterprise solutions, are being transitioned into standalone business units, with the parent company serving primarily as a holding entity.

VNG employs over 3,300 people across nine cities worldwide. The company expects Zalopay to reach break-even by the end of 2026.

🔗 Source: VNG

🧠 Food for thought

1️⃣ VNG’s evolution mirrors Vietnam’s digital transformation journey

VNG’s growth from a game publisher to a diversified tech ecosystem parallels Vietnam’s broader digital economy evolution.

Founded in 2004 with Võ Lâm Truyền Kỳ (VLTK), VNG has transformed from a gaming company into Vietnam’s leading internet company with four distinct business lines spanning games, messaging, payments, and enterprise solutions 1.

Recent VNG developments