VNG CEO Le Hong Minh recounted the company’s strategic adaptation over 19 years, from early PC gaming to mobile app development, and emphasised risk-taking and innovation in AI as key to their future, signalling a potential IPO for substantial growth.
At the Vietnam Venture Summit 2023 in late October, Le Hong Minh, CEO of VNG, shared the compelling success story of his company,
“For VNG, success is about surviving and staying strong amidst the ever-fluctuating technology market,” Minh said. He divulged three key lessons that have enabled VNG to thrive for 19 years.
The first lesson involves seizing opportunities in emerging technology trends. Recalling the early 2000s, Minh spoke of his days owning an internet café where everyone played the same game – MU Online.
This observation led to the founding of VNG, coinciding with the PC internet boom.
“Frankly, in the five to seven years that followed, no matter what game we launched, no matter its quality, we had a plethora of users,” Minh said
VNG’s foray into mobile technology marked another stroke of fortune, particularly with the advent of affordable Android smartphones introduced by Samsung in Vietnam.
“In early 2012, we pivoted to focus on developing smartphone apps like Zalo, shifting our key performance indicators solely to mobile. Fortunately, 2012 turned out to be our most successful year for PC products,” Minh said.
For Minh, setting simple, focused goals is crucial.
In 2008, VNG set a target, dubbed ‘1441’, to reach 41 million users by 2014.
“We achieved this only in 2016, launching numerous internet products, including Zalo. After 1441, we aimed for ‘2332’ – 320 million users by 2023. Currently, with 150 million global users, we are halfway there,” he said.
Minh also underscored the significance of risk-taking, a philosophy integral to VNG’s ethos.
“You can’t achieve great results without taking risks,” he asserted. “An IPO entails significant risks, but we believe it’s essential for real growth.”
Currently, VNG is venturing into AI, a challenging yet crucial pivot.
“We are investing in AI projects and facing risks, but we hope to continue ‘surviving’, as we have for the past 19 years,” he said.
