Here comes a new world warrior: Vietnamese unicorn VNG

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Hello readers,

Welp, I used a videogame analogy in my previous newsletter about Gojek-Tokopedia, and then today’s featured story is about just that: Vietnamese unicorn VNG, best known for its gaming business, is finally looking to take some serious steps into the global arena.

Talk about jumping the gun. Maybe I should use a merger analogy today? 🤔

Anyway, despite this unintentional irony, there’s actually a common thread between both stories: the presence of Sea Group. Anyone playing in the region’s gaming industry has to contend with Sea’s Garena, and despite VNG’s efforts to diversify into other digital services such as social media and ecommerce, gaming still contributes more than 80% of its total revenue. It’s the company’s best shot at succeeding on the international stage.

Competition will be tough, and if VNG wants to succeed, it may just have to “git gud.”

Today, we look at:

• VNG’s decision to expand out of the local Vietnam market
• SME crowdfunding arriving in Thailand, courtesy of Funding Societies
• Other newsy highlights such as the digital arms race for 6G and Reddit getting a bumper round of financing

PREMIUM SUMMARY

From Vietnam to the world

VNG and Sea Group used to be the only Southeast Asian unicorns, with their businesses largely built on gaming. Since then, though, Sea has skyrocketed to a public listing and a market capitalization of over US$100 billion, while VNG has stayed home in Vietnam and is estimated to have a relatively modest valuation of US$2.2 billion.

But that might all change soon: Vietnam’s first unicorn is putting on its climbing boots and is finally ready to scale the global market.

• Global > Local: At a November 2020 event held in Hanoi, VNG CEO and co-founder Le Hong Minh said the company’s goal is to generate most of its total revenue from the global market in the next three to four years.
• Early stumbles: In 2011, the company entered Japan by publishing social games Pig Farm and Sky Garden through a tie-up with Tokyo-based firm DeNA, but it had limited success.
• Tough opponents await: Sea’s Garena has been dominating the hardcore segment in Southeast Asia and is making headway in Latin America, while telecommunications giant Singtel has recently come out with its own gaming venture, Storms.

Thailand now lives in a Society