Photo: hanoimoi

The total turnover of Vietnam’s internet economy is scheduled to soar to 100 trillion VND (roughly 4.72 billion USD) by 2018 from 20.4 trillion VND in 2013, according to an article published on the English language news portal VietNamNet Bridge.

A recent survey by World Startup Report on the world’s internet companies showed that Vietnam ranks 30th among 50 surveyed countries in terms of business scale.

Of the three big internet firms, VNG was valued at one billion USD. The other two are VC Corp, valued at 125 million USD, while Vat Gia Viet Nam JSC, which runs vatgia.com website, is valued at 75 million USD.

The Vietnamese companies have obtained high value just after eight to 10 years of operation.

Le Hong Minh, CEO of VNG, was quoted as saying that internet service has been one of the fastest growing industries over the last 10 years.

In 2004, the total revenue from internet-based services was modest at 70 billion VND. Meanwhile, the figure jumped to 2.6 trillion VND by 2009 and to 20.4 trillion VND by 2013, which came from online games, e-commerce, internet content services and online ads.

Also according to Minh, the turnover from online ads soared from 20 billion VND in 2004 to 300 billion VND in 2009 and then to 2.2 trillion VND in 2013, the year when the online ad revenue for the first time was higher than the revenue from print paper ads.

VNG predicted that the total turnover of the internet-based content services would reach 100 trillion VND by 2018. The online ad turnover is believed to increase by four times by 2018 in comparison with 2013 to 8 trillion VND, while the turnover from online games by two folds to 12 trillion VND.

Vietnam is believed to witness an e-commerce boom by 2018 with turnover reaching 60 trillion VND, while content services on mobile devices may increase from 8 trillion VND 2013 to 20 trillion VND.

In 2013, VNG reportedly got the revenue of 2.1 trillion VND, while it strives to earn 2.365 trillion VND in 2014.

According to the internet company, about 30-50 million customers use the company’s services a day. Zalo, an app that allows to send messages and make calls free of charge, has attracted 11-12 million users.

VNG also has Zing MP3, an app for listening to music; news.zing.vn, an electronic information portal; Zing Me, a social network; and Zing Chat, an app for online chatting and many online games.

VNG, which is now valued at 1 billion USD and employs 2,000 workers, was founded in 2004 by five men with a passion for games who wanted to develop a leading online game company.

VC Corp, according to the corporation’s CEO Vuong Vu Thang, has the data processing scale equivalent to that of Yahoo with 30 billion ad views per month.

VC Corp has created 40 products in many different fields. E-commerce is a great advantage of VC Corp, with a series of websites, including Rongbay.com, Enbac.com, Muare.vn, Muachung.vn, and Solo.vn, which have over 10 million customers and trading volume accounting for 30 percent of the market’s total transaction value.

Meanwhile, Vat Gia JSC has been focusing on developing e-commerce. Vatgia.com, an online shopping web, reportedly has trading value of 3 trillion VND a year, with one million members.

Source: VNA