Journey to Create a Sustainable Digital Future for Vietnam

Vision and Mission

During 20 years of establishment and development, VNG has continuously innovated for a digital future of Vietnam. From an online game company started in 2004, VNG has developed into a leading technology enterprise, pioneering in many key areas such as online games, connection platforms, cloud computing, and most recently, AI and digital finance.

Our mission goes beyond simply developing technology products. At VNG, we believe that technology is the key to unlocking a sustainable, bright future for Vietnam. VNG is committed to taking the lead in national digital transformation, creating advanced digital solutions and platforms, bringing practical value to people, businesses and the Government. We are also committed to constantly innovating, creating and cooperating to build a developed digital Vietnam, deeply integrated into the global economy.

Digital Transformation Landscape in Vietnam

Vietnam is entering a key stage in its national digital transformation, with notable achievements such as the VNeID and VietQR systems. According to data from the Ministry of Information and Communications, Vietnam's e-government development index (EGDI) has increased by 15 places in the 2022-2024 period, demonstrating its commitment and strong progress in national digitalization.

General Secretary To Lam affirmed that developing science and technology, innovation and digital transformation are mandatory choices, the only way for Vietnam to develop. The Government will allocate at least 3% of the budget for science and technology development and continue to increase this rate to 5% in the next 5 years. However, there are still many challenges, requiring the joint efforts of both the public and private sectors to accelerate this process.

Vietnam's major policies and strategies for national digital transformation

Recognizing the importance of digital transformation, the Vietnamese Government has issued many policies and programs to promote this process:
• National Digital Transformation Program to 2025, with a vision to 2030: Approved under Decision No. 749/QD-TTg dated June 3, 2020, this program aims to develop digital government, digital economy and digital society, aiming to bring Vietnam into the top 50 countries in e-Government and innovation.
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• Resolution No. 57-NQ/TW dated December 22, 2024 of the Politburo: This Resolution emphasizes that the development of science, technology, innovation and national digital transformation is a top important breakthrough, the main driving force for socio-economic development, preventing the risk of falling behind and bringing the country to breakthrough development in the new era.

In that context, VNG is proud to contribute and accompany the Government in the digital transformation journey. With 20 years of pioneering experience in technology development and Go Global, VNG has been actively contributing to building digital infrastructure, creating advanced technology solutions and enhancing digital capacity for people, businesses as well as agencies and ministries in Vietnam.

According to We Are Social, by early 2024, 78.8% of Vietnam's population used the Internet, higher than the average in Southeast Asia. 75.2% of Vietnam's population used social networks, showing the popularity of digital platforms in daily life. According to data from the State Bank, QR payment transactions in the first 6 months of 2024 increased by 1,062.01% in value compared to the same period in 2023. The Vietnamese government aims for the digital economy to account for 30% of GDP by 2030. These figures show the great potential of Vietnam's digital market, and VNG is proud to be one of the businesses leading this wave.

VNG creates the future through three waves of technology

The PC Era (2004-2012): Laying the Foundation for the Digital Economy

Starting in 2004 under the name Vinagame, VNG boldly brought online games to Vietnamese users through the success of Vo Lam Truyen Ky. This was not only a breakthrough in the field of domestic digital entertainment, but also
is an important milestone for the development of Vietnam's digital content industry.

Mobile Wave (2012-2023): Connectivity and Technology Universality
In 2012, when the mobile wave was just starting to appear in Vietnam, VNG demonstrated its strategic vision by quickly shifting from PC to mobile. This determination helped the company successfully dominate the market with key products such as Zalo, Zing MP3 and Zalopay, reshaping the way Vietnamese people communicate, entertain and manage their finances:

Game Sector: Regional and global reach

Continuously maintaining its leading position in the gaming industry for the past 20 years, with more than 200 game titles released in the Vietnamese market and 40 game titles released internationally, serving 79 million regular users each quarter. The decision to shift its strategy from PC games to mobile games in 2012 helped the company adapt promptly to market trends, demonstrating its foresight and ability to predict technology trends. By 2017, PC games accounted for only 10% of VNG's business activities.

Zalo: National digital connection platform

Launched in 2012, Zalo has become a symbol of digital connectivity, the most popular messaging application in Vietnam with 77.8 million monthly active users by the end of 2024. Zalo not only connects people but is also an effective digital bridge between the government, businesses and users, effectively supporting the provision of public services and information. In particular,
Zalo is also an important information and communication channel in emergency situations such as natural disasters and floods.

Zalopay: Pioneer in digital payment

Zalopay also affirms its pioneering position in the field of digital payments. According to data from the State Bank, QR payment transactions in the first 6 months of 2024 increased by 1,062.01% in value compared to the same period in 2023. Zalopay currently serves 16 million users with more than 100 diverse products and utilities. By the end of 2024, Zalopay's network will expand to 52,000 partners and 81,000 payment points, achieving a growth of 39% in transaction volume and 149% in financial services revenue compared to the previous year. The title of Top 200 Global Fintech Companies awarded by CNBC in 2023 is a testament to Zalopay's pioneering position.

VNG Digital Business: Trusted partner of businesses

In 2018, VNG had a strategic expansion: from serving individual customers (B2C) to the business customer market (B2B). Starting with VNG Cloud and upgrading its scale to VNG Digital Business in 2023. DB operates in three main areas: Security, AI Cloud and SaaS-based products and services. This is both an opportunity and a big challenge, but VNG identifies that improving capacity to serve diverse customer groups is the key to sustainable development, because business customers are a very important driving force to promote the country's successful digital transformation.

Riding the Wave of Full-Scale AI – Vision to Become an AI-First Company

As early as 2017-2018, when AI had not yet become a global trend, VNG had its first experiments with AI. Now, with the experience and capacity accumulated after nearly 10 years, VNG is investing heavily in AI on all three layers: infrastructure
layers, platforms and applications.

At the June 2024 General Meeting of Shareholders, the company affirmed its goal of becoming the leading AI company in Vietnam and the region. By the end of 2024, AI had brought the first commercial successes to VNG, turning "prospects" into actual business results, bringing VNG closer to its goal of becoming an 'AI-First' company in the next 5 years.

Pioneering AI Infrastructure

|GreenNode—the AI ​​Cloud unit of VNG DB—has entered into a strategic partnership with NVIDIA since late 2023 to develop a large-scale AI data infrastructure in Bangkok, Thailand, officially launching in June 2024. This is one of the first AI Cloud infrastructures in Southeast Asia, deployed and commercialized in a record time of less than 6 months, bringing in tens of millions of USD in revenue. This achievement affirms the technological capabilities and outstanding AI commercialization speed of the VNG team, laying the foundation for VNG's goal of conquering the regional market.

Comprehensive AI Platform

GreenNode is currently providing comprehensive AI solutions for small and medium enterprises, while AI Lab focuses on researching and developing core technologies suitable for the Vietnamese market. The Stable Diffusion model on Artian of VNGGames developed by GreenNode has helped reduce 50-70% of design volume and increase performance 3 times for game studios in VNG. The Smart Document Processing solution has supported banks to reduce 70% of data entry errors, saving more than 2,000 working days and billions of VND per year. TrueID, a comprehensive authentication solution including eKYC/video KYC, NFC, Face Authentication, has protected 40 banks and financial institutions according to the standards of the State Bank.

Widespread AI Applications

Zalo AI stands out with AI technology mastered by Vietnam, developed in 4 independent laboratories. AI application features such as text-to-speech, message translation, voice editing, etc. have attracted 20% of Zalo users to use it regularly every month. Kiki Auto, a smart Vietnamese assistant for cars, has reached 1 million installations, accounting for 20% of the market share of cars on the road in Vietnam.

Zalo also contributes to the AI ​​community through cooperation with the Japan Institute of Science and Technology (JAIST) to develop the VMLU Vietnamese proficiency assessment standard set—a large Vietnamese language model assessment dataset with 10,880 questions, attracting 155 organizations and individuals to participate and 691 data downloads in 2024.

For a sustainable digital Vietnam

VNG's story does not stop at technology. It is a journey and a desire to contribute to a sustainable digital Vietnam. Zalo has accompanied State agencies and authorities at all levels in administrative reform and improving the quality of public services. From providing timely information in natural disaster situations to improving interactions between the government and people through Zalo Official Account and Zalo Mini App, VNG is contributing to creating a society
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By the end of 2024, Zalo had 17,273 Zalo OAs of state agencies and utilities (health, education, etc.), serving more than 40 million followers in 63 provinces and cities, supporting information lookup, administrative procedures, and interaction with the government through features such as propaganda, 1-1 chat, and profile updates. In addition, 173 Zalo Mini Apps operated by state agencies in 25/63 provinces and cities, such as Tay Ninh Smart, BR-VT Smart, and GoBus Ho Chi Minh City, have digitized administrative procedures, allowing lookup, online submission of documents, receiving notifications, connecting with the police, and promoting the local economy.

Zalopay, with the orientation of becoming an open payment platform from July 2024, has cooperated with banks and financial institutions to improve user experience and expand digital payment infrastructure. The strategic product Zalopay Multi-function QR allows flexible payment through many applications, not only improving user experience but also supporting the goal of reducing cash dependence, promoting digital economic development by 2045.

VNG has continuously promoted changes in the technology field, especially in developing international standard data infrastructure - the backbone of the digital transformation process. In May 2024, VNG and ST Telemedia Global Data Centers (STT GDC) announced cooperation in building and operating an international data center project in Ho Chi Minh City. This project includes operating STT VNG Ho Chi Minh City 1 Data Center and building a new center STT VNG Ho Chi Minh City 2, providing infrastructure meeting Uptime Tier III standards and ISO international certifications, supporting the needs of banks and international financial institutions.

In June 2024, VNG Cloud launched the first cross-regional cloud computing infrastructure in Vietnam, meeting international data protection standards, providing superior data storage solutions with cross-regional redundancy mechanisms and ensuring Uptime SLA service of up to 99.99%. This transformation not only improves VNG's operational efficiency but also contributes to the overall development of the information technology industry and digital economy in Vietnam, supporting businesses in effectively managing and protecting important data.

Shaping Vietnam's Digital Future

VNG does not only create technology, we aspire to create a digital future for Vietnam. From the first steps in the PC market, to the explosion of the mobile era, and now, pioneering the AI ​​wave, VNG has demonstrated outstanding adaptability and strategic vision. We do not just keep up with trends, but also proactively shape them, creating revolutionary technology solutions, changing the way Vietnamese people live, work and connect.

More than just a technology company, VNG is an integral part of the country’s digital transformation. We are committed to continuing to invest in research and development, working closely with partners, and constantly innovating to bring sustainable values ​​to Vietnam. VNG believes that technology is not just a tool, but a powerful driving force to build a powerful, prosperous, and deeply integrated digital Vietnam into the global economy.

With a solid technology foundation over 20 years and the aspiration to reach international standards, VNG has been, is and will always accompany this meaningful journey of Vietnam, gradually realizing its commitment: bringing practical values ​​to people, businesses and society through the power of innovation.

This is a series of excerpts from the 2024 Annual Report. See the full article here.

Source: https://www.vng.com.vn/news/enterprise/vng-hanh-trinh-kien-tao-tuong-lai-so-hoa-ben-vung-cho-viet-nam.html