VNG Annual Report 2024: Southeast Asia

VNG Corporation’s 2024 annual report details a pivotal transition toward an AI-first organizational strategy, aimed at evolving from a traditional gaming company into a diversified digital ecosystem. By integrating generative AI across its infrastructure, messaging platforms, and fintech services, the company seeks to drive long-term growth and regional expansion. Despite facing a challenging domestic gaming market and regulatory headwinds, VNG has successfully leveraged its core assets—including the Zalo messaging platform, Zalopay, and its expanding Digital Business segment—to support Vietnam’s broader digital transformation and solidify its international footprint.

Financially, the company reported a 22% year-over-year increase in net revenue to VND 9,273 billion, bolstered by strong performance in its fintech and digital business units. While the gaming segment experienced a 9% decline in bookings, the company achieved a notable turnaround in adjusted operating profit, reaching VND 302 billion. However, VNG continues to navigate significant financial pressures, recording a consolidated net loss of VND 1,180 billion. This deficit is largely attributed to heavy strategic investments in AI GPU infrastructure, data centers, and provisions for long-term development. The report identifies material uncertainty regarding the company’s ability to continue as a going concern, though management maintains that cash flow projections and liquidity strategies will suffice to meet operational requirements over the coming year.

Operationally, VNG has prioritized efficiency and global scalability. Zalo remains a dominant force in Vietnam with 77.8 million monthly active users, while Zalopay has successfully pivoted to an open financial platform model, reporting a 39% increase in payment volume. The company’s Digital Business segment saw a 70% revenue surge, driven by the launch of the GreenNode AI Cloud in Thailand and expanded enterprise services. Looking ahead, VNG is formalizing an Enterprise Risk Management framework to address ongoing regulatory and financial challenges while continuing to invest in its human capital and AI-driven production capabilities to secure its position as a leading technology provider in Southeast Asia.