VNG Annual Report

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ANNUAL

REPORT

2024

From Vietnam For Vietnam

↓

Chairman Message

Dear VNG Shareholders,

This year marks VNG's 20th anniversary – a milestone we've celebrated in truly memorable fashion. What touches me most deeply is seeing how VNG's core values remain unchanged after two decades: our resilience, the belief in our mission, and the unwavering focus on serving customers. Even during our toughest moments, VNG's people have stayed true to these principles.

The past three years have tested us. We're working to return to profitability after heavily investing in new businesses and our ecosystem. We face industry headwinds – from slowing global mobile game growth to cautious advertising spending in Vietnam. Promising new ventures in fintech, cloud, and AI haven't yet delivered significant financial returns. Our ambitious expansion efforts – taking our games global, scaling fintech operations, and building AI products – have involved trial and error in allocating people, time, and resources.

2024 Highlights

Sustained Business Expansion

Net Revenue

-43,273

billion VND

Increased 22%

Adjusted Operating Profit (Loss)

-1,440

billion VND

Net Cash Flow from Operating Activities

-4,017

billion VND

State Budget Contribution

-5,114

billion VND

(third consecutive year exceeding the 1 trillion VND threshold)

Connecting the Government and the People

Vital Role in Disaster Prevention

-82,273

Zalo Official Account

serving over 40 million followers

-825

Zalo Mini Apps

active in 25 provinces

-1,020M

alerts were sent through Zalo

in coordination with authorities

AI-First Strategy

VNG’s New Growth Engine

A Philosophy That Drives Progress

This strategy powers sustainable progress. From gaming breakthroughs at VNGGames to streamlined fintech at Zalopay, AI reshapes how we connect and serve users. GreenNode’s efficiency reduces costs and environmental impact, while AI in Zalopay and Digital Business promotes inclusion and enterprise strength—over 40 banks and thousands of firms benefit from our solutions. “VNG will become an AI-first company within 5 years,” Mr. Le Hong Minh has set as our ambitious target. By embedding AI strategically, we’re not just adapting—we’re shaping the future, as we did with PC and mobile eras, ensuring VNG drives progress in Vietnam and beyond. This approach reflects our commitment to a future where technology and sustainability align, meeting global demands while staying rooted in Vietnam—delivering solutions that uplift society, empower businesses, and secure lasting success.

This “do first, learn as we go” mindset has shaped VNG’s AI strategy since mid-2023, though our AI roots trace back to 2017, with Zalo started exploring AI through early-bird projects like Kiki Auto. It’s 2023, however, that we fully recognize AI’s transformative power, committing to an AI-First Strategy by mid-year– a vision affirmed at our 2024 Annual General Meeting.

This isn’t about following trends. At its core, our AI-First Strategy integrates AI across VNG’s ecosystem, channeling resources into three key layers—infrastructure, platform, and application—to fuel innovation, advance Vietnam’s digital economy, and position VNG as a global player.

Pioneering AI Infrastructure

GreenNode, launched in 2023, forms the backbone of our infrastructure layer. Emerging during a challenging year, this AI Cloud division completed Southeast Asia’s most efficient GPU-based data center in Bangkok by June 2024. Built in under six months in collaboration with STT GDC, it stands among the region’s first large-scale AI Cloud facilities—a commercialization speed unprecedented in the market. A 2023 NVIDIA partnership secured priority access to cutting-edge chipsets, enabling GreenNode to serve global clients and generate tens of millions of USD within its initial months. Engineered for efficiency, it minimizes energy consumption while expanding our AI capabilities across the region.

Comprehensive AI Platform

Our platform layer powers practical solutions. GreenNode refines open-source models, while KiLM—Vietnam’s leading “build-from-scratch” large language model, developed by Zalo AI—marks our push for homegrown innovation. Our end-to-end AI solutions start transforming how businesses operate. For VNGGames, integrating Stable Diffusion into the Artian platform cuts design workloads by 50-70%, tripling efficiency. Our Intelligent Document Processing (IDP) system by GreenNode, adopted by 12 banks, reduced data errors by 70%, shaved processing time by a third, and saved over 2,000 man-days and billions of VND annually. TrueID, Vietnam’s only fully integrated e-identification system (combining eKYC, video KYC, biometric authentication, and NFC), powers over 40 banking systems with secure, AI-driven authentication, setting a national standard.

Bringing AI into Everyday Life

At the application layer, Zalo leads Vietnam’s “Make-in-Vietnam” AI charge, turning AI into a daily ally for tens of millions. With four research labs driving full R&D autonomy, we’ve introduced text-to-speech, voice messaging, and real-time translation – features over 20% of Zalo users embraced by late 2024—a figure we aim to double in 2025. Across VNGGames, Zalopay, and Digital Business, every unit experiments with AI, prioritizing user impact over short-term gains. Every employee is urged to weave AI into their work, igniting a culture of innovation.

A Philosophy That Drives Progress

Pioneering AI Infrastructure

Comprehensive AI Platform

Bringing AI into Everyday Life

A Philosophy That Drives Progress

Awards

VNG Corporation

Leading Tech Firm in Vietnam 2024World Business Outlook

Vietnam Best WorkplacesGreat Place To Work

UpRace: Sustainability Marketing Campaign of the YearMarketing for Development Awards, sponsored by the European Union

VNGGames

Creator/Influencer/Celebrity Marketing - JX MAXMMA SMARTIES X Global

Mobile Gaming ExcellenceAppsFlyer

Top Publisher of the Year 2024Data.ai

#2 Top Rest of Asia & #2 Top Vietnam HQ’s Parent Companies Powered by Mobile Performance Score: GamesData.ai

Leading Game Publisher of the YearVietnam Gameverse 2024

Game of the Year for Teamfight TacticsVietnam Gameverse 2024

Best of Google AI and Brand & Creators - Tay Du VNGYouTube Works Awards 2024

Zalo

Commendation for digital transformation and community supportVietnam Fatherland Front Central Committee in Nghe An

Best Vietnamese Virtual Assistant 2024Tech Awards by VnExpress

Enabling Technology Company of the YearVietnam MMA Smarties 2024

Best Multi-functional Messaging App of 2024Sensor Tower APAC Awards

Zalopay

Outstanding Fintech Company 2024Vietnam Outstanding Banking Awards

Gold Payment IntermediaryNAPAS Customer Conference 2024

Digital Transformation Product for the Community - Zalopay Multifunctional QRVietnam Digital Awards 2024

Top 100 Innovative Products and Services of 2024 - Zalopay Multifunctional QRVietnam Investment Review in collaboration with Viet Research

Top 10 Best Vietnamese Goods for Consumer Rights - Zalopay Multifunctional QRBest Vietnamese Goods – Perfect Service Awards

Digital Business

AI Technology Excellence AwardAsian Technology Excellence Awards 2024

Cloud Technology Excellence AwardAsian Technology Excellence Awards 2024

A-IoT Excellence AwardSao Khue 2024