Vietnam's Tech Unicorn VNG Reports $12.4M Loss in 2025, Fifth Straight Year Despite Strong Revenue Growth

Vietnam's leading tech unicorn VNG Group has reported a post-tax net loss of $12.4 million (VND326 billion) for 2025, marking the fifth consecutive year of losses.

Despite the ongoing losses, the figure represents a significant improvement from the VND1,180.4 billion deficit in 2024, while revenues surged 17% year-on-year to VND10,894 billion.

Gaming and Core Segments Drive Growth

The gaming division remained VNG's largest revenue generator, contributing VND8,162 billion with a 13% increase.

Zalo, the popular messaging app, saw impressive growth with revenues up 38% to VND1,718 billion and 79.6 million monthly active users.

Other segments like financial services through Zalopay and the AI & cloud platform GreenNode also contributed to the overall revenue expansion, with foreign markets accounting for 22% of total sales.

Historical Context and Challenges

Founded in 2004 as game distributor Vinagame, VNG achieved unicorn status in 2014 valued at $1 billion and reached $2.2 billion by 2019 according to Temasek.

However, VNG's current liabilities exceeded assets by VND494.2 billion at the end of 2025, raising concerns about its ongoing viability.

Future Outlook Amid IPO Setbacks

The company's ability to continue operations now hinges on achieving future profitability, amid a challenging environment for Vietnam's startup exits.

VNG, backed by investors like China's Tencent, Ant Group, and Singapore's GIC, withdrew its US IPO plans in January 2024, underscoring difficulties in the regional tech landscape.

This persistent unprofitability could impact investor confidence in Vietnam's burgeoning tech ecosystem, despite strong user growth and revenue momentum.