Raids on VNG: Vietnam's Tech Unicorn Under Scrutiny

Vietnamese authorities raided VNG, a leading tech startup, at its Ho Chi Minh City office. VNG, noted for its global operations and valued at over $1 billion, is cooperating with ongoing investigations. The reasons for the probe remain undisclosed. VNG recently withdrew its U.S. IPO application.

Dozens of police on Friday raided the Ho Chi Minh City headquarters of software company VNG, a prominent tech startup in Vietnam, the company confirmed.

'The investigation is still ongoing, and VNG continues to actively cooperate with the authorities, ensuring compliance with their requests,' VNG stated, assuring that its business operations would continue as usual.

The company did not disclose the reasons for the investigation. However, a source familiar with the matter indicated that the probe includes VNG and two related firms, Zion JSC and Thanh Son Communication Company.

Founded in 2004, VNG, Vietnam's first unicorn, valued at over $1 billion, recently withdrew its U.S. IPO registration in January without providing reasons. VNG's ventures include online games, payments, cloud services, and the country's leading messaging app, Zalo.

VNG's revenue surged 30.3% in the first half of this year to 4.3 trillion dong ($174.7 million), with its net losses narrowing by 51% to 585.8 billion dong, according to its financial statement.

(With inputs from agencies.)