Vietnamese Tech Start-up VNG Faces Police Raid in Ho Chi Minh City

44
1
Vietnamese Tech Start-up VNG Faces Police Raid in Ho Chi Minh City

VNG Headquarters Raided by Vietnamese Police

Dozens of police officers raided the Ho Chi Minh City headquarters of VNG, a prominent Vietnamese tech start-up, on Friday. The company confirmed the raid in a statement, assuring continued cooperation with authorities and normal business operations.

The reason for the investigation remains unclear. However, sources familiar with the matter indicate that it encompasses VNG and two affiliated companies, Zion JSC and Thanh Son Communication Company.

VNG, established in 2004, holds the distinction of being Vietnam's first unicorn, a startup valued at $1 billion or more. Its diverse portfolio includes online games, payment solutions, cloud services, and Zalo, Vietnam's most popular messaging app.

Despite a planned U.S. initial public offering, VNG withdrew its registration in January without explanation.

The company's financial performance in the first half of this year exhibited a 30.3% year-on-year revenue increase to 4.3 trillion dong ($174.7 million). Additionally, its net loss for the period contracted by 51% to 585.8 billion dong.