Vietnam’s First Unicorn VNG to Make Historic US Tech Listing

VNG, Vietnam’s first unicorn, will become the country’s first technology company to list in the US publicly. Sources cited by Reuters reveal that VNG had initially entered a preliminary agreement with NASDAQ in 2017 to explore the possibilities of an IPO. 

According to Reuters, Vietnam’s VNG has announced its intention to raise $150 million through a listing on the US stock market. This development follows the successful debut of Vietnam-based electric car manufacturer VinFast in the US earlier this month, where VinFast’s shares experienced significant gains. 

With founder Pham Nhat Vuong holding 99 percent control of VinFast, the limited availability of publicly traded shares has led to potential stock volatility. The positive market trends are anticipated to prepare other Southeast Asian firms considering US IPOs to benefit from increased momentum.

VNG, established in 2004 and acclaimed as Vietnam’s pioneer tech unicorn, has experienced remarkable growth since its inception. Beginning as a small startup with five individuals, the company has expanded to become Vietnam’s most extensive native digital ecosystem. 

Their products and services have become integral to users’ daily routines. According to Newzoo, VNG leads as the top mobile games publisher in Vietnam, aspiring to extend its global reach. Additionally, the company operates Vietnam’s foremost messaging application, Zalo, boasting 75 million monthly active users, as reported by F&S.

Situated in Ho Chi Minh City, VNG’s flagship offerings encompass Zing MP3, a music streaming platform that reigns as Vietnam’s leading choice with over 28 million monthly active users, and ZaloPay, an emerging mobile payment application, recognized as the fastest-growing in Vietnam by F&S.

Back in August 2021, Bloomberg released a report indicating VNG’s potential plans to make its debut in the US stock market. The company, supported by investors including a unit of Singaporean sovereign wealth fund GIC Pte, was contemplating a public listing in the US through a reverse merger strategy with a blank-check company. 

Statista, a market research firm, has projected substantial growth in the Vietnamese music streaming market. The forecast suggests that revenue from music streaming in Vietnam is expected to witness an increase, amounting to USD $9.6 million between 2023 and 2027. By 2027, the estimated revenue is anticipated to reach a commendable $46.6 million. 

VNG articulated its aspirations for both its own trajectory and its home country in a letter that accompanied its submission to the Securities and Exchange Commission (SEC). In the message, VNG stated, “In the coming decades, Vietnam will transform into a developed nation with three key advantages: a dynamic, industrious young population; an open and connected economy fostering global trade and partnerships; and a country strategically focused on technology and science.”

The letter further emphasized, “We will continue to innovate and build technology products for Vietnam.”

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