In recent days, many Zalo users have received notifications about updated terms of service, related to personal data. Notably, users only have the option to "agree to all," and cannot select specific parts. If they refuse, their account will be deleted after 45 days.
How is Zalo currently functioning?
Launched in 2012, Zalo is a free messaging and calling application developed by VNG Group Joint Stock Company (stock code: VNZ).
In its latest report, Decision Lab noted that Zalo has risen to become the most popular messaging app in Vietnam, far surpassing foreign giants like Facebook, Viber, and Telegram.
According to a report from VNG, as of Q3/2025, Zalo recorded over 79 million monthly active users, with 2.1 billion messages sent daily and more than 25,000 paid Zalo OA accounts.
Data on the number of Zalo users and the volume of messages sent. (Image: Screenshot from VNG's report).
Besides developing a free messaging application, Zalo generates revenue from value-added services and Business Services (non-ads revenue). In 2024, the proportion of revenue from these services doubled compared to 2023.
Currently, VNG is the developer and holds a controlling stake in Zalo.
Amidst the growing commerce through social media, in February 2025, VNG established Zalo Platforms Co., Ltd., specializing in providing enterprise solutions on Zalo. VNG is also the owner of this company.
Who is behind Zalo?
VNG's predecessor was VinaGame, founded by Mr. Le Hong Minh. In 2014, VNG was valued at $1 billion, according to the World Start-up Report, becoming the first "unicorn" in Vietnam.
Currently, VNG has successfully developed into a technology company, involved in many fields from online games to Zalo (social network, messaging), ZaloPay (payment), and cloud computing and digital transformation solutions.
On December 28, 2022, VNG's common shares were approved for trading on the UPCoM market, with the first trading day being January 5, 2023. On the stock market, VNZ was also the first stock to reach a price above 1 million VND per share. Currently, VNZ's market price has fallen sharply to only 365,000 VND per share, equivalent to a market capitalization of 10,722 billion VND.
In a filing submitted to the U.S. Securities and Exchange Commission (SEC) in 2023, VNG revealed its existing shareholder structure for the first time. The largest shareholder was VNG Limited, holding 49% of VNG's shares directly.
The two founding shareholders of VNG, Mr. Le Hong Minh and Mr. Vuong Quang Khai, own 12.6 million and 1.68 million Class B shares respectively, corresponding to voting rights percentages of 45% and 6% in VNG Limited.
According to information from the National Business Registration Portal, as of July 16, 2025, VNG Limited (headquartered in the Cayman Islands) was a foreign shareholder holding 47.93% of VNG's capital, with the remaining capital held by domestic private investors, but details were not provided.
In terms of business, VNG generates an average of over 7,000 billion VND in revenue each year, but has consistently incurred losses. In 2022, VNG lost 1,533 billion VND. In 2023, the loss was 2,317 billion VND, with VNG attributing the losses largely to changes in accounting policies.
In 2024, despite a sharp increase in revenue to over 9,000 billion VND, the company still incurred losses of trillions of VND.
Chairman of the Board, Mr. Le Hong Minh, once stated that the past three years have been a "truly challenging" period due to the slowdown in the global gaming market and the cautious approach to advertising spending in Vietnam.
Meanwhile, VNG is investing in new areas such as fintech, cloud computing, and artificial intelligence, which are in the process of proving their financial viability.
In the third quarter of this year, VNG recorded net revenue of VND 2,894 billion, a 12% increase compared to the same period last year. The company incurred a consolidated after-tax loss of over VND 7 billion, mainly due to a large proportion of selling and administrative expenses. However, after-tax profit attributable to shareholders of the parent company reached over VND 7 billion.
For the first nine months of this year, the company's revenue reached VND 7,697 billion, an 11% increase compared to the same period last year. Online games remain the largest segment (64%) with VND 4,919 billion. The remaining revenue comes from online advertising, value-added services on the internet, ringtones, and song copyrights.
For the first three quarters, VNG reported a net loss of over 7.5 billion VND, significantly lower than the 596 billion VND loss in the same period last year.
Regarding the controversy surrounding the new terms of service, Zalo has responded by stating that "updating terms of service is a common practice for all applications and technology platforms worldwide , aimed at ensuring compliance with legal regulations and providing users with clear information about changes in the service provision process."
In addition, according to Zalo, updating the terms of service will help ensure transparency in the system's operations and protect user rights.
Cybersecurity expert Ngo Minh Hieu (Hieu PC) also spoke out, saying that the frequent updates of terms of service by social media platforms like Zalo, Facebook, and TikTok are normal and not unusual. Platforms update their terms to comply with new laws, add features, protect user rights, and update privacy and data protection.
However, Mr. Hieu emphasized that in the digital environment, no application is absolutely secure. Every application needs to use user data to a certain extent in order to maintain its operation.
The National Competition Commission ( Ministry of Industry and Trade ) has also invited VNG to a meeting regarding the collection and use of user information and the provision of services on the Zalo platform.
Source: https://dantri.com.vn/kinh-doanh/ai-dung-sau-zalo-20251231111752419.htm
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