VNG targets 35 per cent growth in pre-tax profit in 2017

By Hang Ta - Jun 29, 2017 | 08:36 AM GMT+7

According to the resolution of the annual shareholders’ meeting of major Vietnamese information technology company VNG Corporation passed last week, it has set a target revenue of VND3.96 trillion (US$174 million), up 31 per cent over the previous year, and profit before tax of VND908 billion (US$40 million), up 34.7 per cent.

VNG targets 35 per cent growth in pre-tax profit in 2017
Representatives of VNG and Nasdaq at the signing ceremony of the listing agreement in May. Photo: VNA

In 2017 and in the coming years, VNG continues its "go global" strategy, developing its core businesses, extending and developing the Zalo application and online payment services.

According to Le Hong Minh, chairman and CEO of VNG, gaming will still be the main sector which brings the brunt of VNG’s revenue. In addition, a sector which it expects to bring high revenue growth in 2017 could be online advertising.

From the beginning of 2016, VNG Corporation (VNG) has started to promote the "go global" strategy by bringing its products, such as Zalo, Sky Garden, and Dead Target, to overseas markets.

Zalo is an OTT application developed by VNG that entered Myanmar in the middle of last year and quickly reached 2 million users within 4 months.

Currently, the VNG office in Singapore begins plans to build a data centre to provide VNG services to end-users in the ASEAN market. The VNG office in Thailand is also undergoing an overall restructuring to welcome new staff and continue to develop this market.

This plan has produced many outstanding achievements on the international playing field, boosting VNG’s confidence to take on a new challenge, aiming to become a global enterprise from the year 2017.

According to Minh, in order to achieve this goal, VNG should first be listed on NASDAQ (US), which can be considered a standard for accessing an enterprise. NASDAQ is the stock exchange of technology companies around the globe. To be listed, the company must adapt strict standards of business, finance, and corporate administration, among others.

May 30, 2017 marked a milestone for VNG, as the company signed an agreement to be listed on NASDAQ. This event was held during the official three-day visit of Prime Minister Nguyen Xuan Phuc to the US during May 29-31, 2017.

Robert H. McCoy, Jr., vice president of NASDAQ’s Listing Services, said NASDAQ was impressed with VNG’s business achievements and believed that after being listed, the company would become a bright spot of a startup model in Vietnam and attract more interest from the global finance market.

VIR