Vietnam’s top tech firm, VNG, is doubling down on artificial intelligence and international expansion as it charts a return to growth. At its 2025 annual meeting, the company announced a revenue target of 10.77 trillion dong (US$423 million), up from 9.27 trillion dong in 2024. Operating profit swung to US$11.9 million last year, reversing a small loss in 2023. Chairman Le Hong Minh said VNG is focused on building AI into its core products rather than chasing hype.
The company also pledged not to cut jobs due to automation, calling AI a tool for productivity. VNG’s four key units, gaming, Zalo & AI, fintech, and enterprise solutions, are now run as standalone businesses. With 3,300 employees in nine cities, VNG is pushing into new markets while continuing to back homegrown innovation. Its approach mirrors Vietnam’s digital economy goals, where tech is expected to contribute 10% to GDP by 2025.
AI Moves from Buzzword to Business Engine at VNG
VNG has launched a series of AI initiatives built around practical use rather than speculation. At the center is KiLM, a large language model developed in-house and designed to power features inside Zalo, the company’s flagship messaging app. Over 15 million users interact with Zalo’s AI tools daily. These include writing support, customer replies, and AI-driven search within conversations. “Our approach is careful and focused,” said chairman Le Hong Minh, noting that few global companies have yet turned LLMs into real revenue.
Supporting KiLM is GreenNode, VNG’s proprietary cloud infrastructure. The company is also using AI to improve advertising for games and develop predictive tools for user behavior. Rather than offer AI as a product on its own, VNG is embedding it into areas where it can immediately improve experience or efficiency. The goal is to enhance daily interactions for users, not overwhelm them with new tech.
Early Gains, Big Ambitions, and a Cautious Road Ahead
VNG’s 2024 results show early returns from its AI and platform efforts. Game bookings rose 37%, with 74.3 million monthly users. Zalo had 77.8 million users, while Zalopay’s transaction volume jumped more than 15 times, driving a 149% revenue increase. But the road ahead isn’t without hurdles. Zalopay, for example, is not yet profitable, though VNG expects it to break even by the end of 2026. There’s also industry pressure to automate aggressively, something VNG is resisting.
“AI is a tool to enhance productivity, not replace people,” Minh said. He pointed to customer support, where automation let them scale with fewer staff, but without layoffs. Internationally, the company is pushing its gaming unit into Southeast Asia, the U.S., Taiwan, and Hong Kong. New titles are being co-developed with firms like Riot Games and Roblox. While growth is promising, VNG’s expansion relies on navigating competition, compliance, and regional user preferences.
VNG’s Tech-Centered Strategy Signals a New Phase of Growth
VNG’s blend of AI investment and measured expansion marks a turning point for both the company and Vietnam’s digital sector. Its restructuring into four focused business units aims to unlock faster innovation while managing risk. The decision to build proprietary tools, from language models to cloud infrastructure, aligns with Vietnam’s push for tech self-reliance.
At the same time, VNG’s refusal to pursue mass layoffs sets it apart in a climate where many tech firms are cutting jobs. By embedding AI where it adds clear value and expanding into global markets with proven strengths like gaming, VNG is laying the groundwork for a new growth phase. If successful, its path could serve as a blueprint for other emerging market tech players looking to scale responsibly.
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