VNG to Acquire 65% of VTH for 480B VND, Expanding Land Holdings in HCMC

Overview

VNG Corporation (VNZ, UPCoM) announced a board resolution to acquire 65% of Phát triển Phần mềm VTH, a company owning a 25,463.5 m2 land plot in Tan Thuan Export Processing Zone, Ho Chi Minh City. The deal, valued at approximately 480 billion VND, is expected to close in Q3 or Q4 2026, subject to regulatory approvals.

Key Facts

• VNG will purchase over 33.4 million common shares, representing 65% of VTH’s charter capital.
• The purchase price is about 480 billion VND (approximately USD 19.2 million), with a maximum adjustment margin of 5%.
• The transaction is expected to complete in Q3 or Q4 2026, pending approvals including economic concentration clearance.
• VTH owns a 25,463.5 m2 land plot at Lot BF11-20, Tan Thuan Street, Tan Thuan Export Processing Zone, Ho Chi Minh City.
• VNG plans to use the land for office expansion, employee sports facilities, an esports center, and other business purposes.
• VTH was established on September 21, 2022, with charter capital of 180 billion VND; its legal representatives include Yeo Shengyan, Lionel (Chairman) and Nguyễn Thành Danh (General Director), who also hold similar roles at VNG Data Center (49% owned by VNG).
• In Q2 2026, VNG reported net profit of over 466.8 billion VND, nearly 32 times higher than Q2 2025.

What Happened

VNG Corporation announced a board resolution to acquire a 65% stake in Công ty Cổ phần Phát triển Phần mềm VTH (VTH), a company holding a significant land asset in Ho Chi Minh City. The acquisition involves purchasing over 33.4 million shares for approximately 480 billion VND, with a possible price adjustment of up to 5%. The deal is slated for completion in Q3 or Q4 2026, contingent on receiving necessary approvals from state authorities, including economic concentration clearance.

If successful, VNG’s ownership in VTH will rise to about 99.99% of charter capital and voting rights, making VTH a direct subsidiary. VTH owns a 25,463.5 m2 plot in the Tan Thuan Export Processing Zone, which VNG intends to use for expanding office space, building employee sports facilities, developing an esports center, and other business purposes. The announcement comes alongside VNG’s strong Q2 2026 results, with revenue up 26.4% year-on-year and net profit surging nearly 32 times.

Market Context

VNG shares closed at 620,200 VND on August 17, 2026, on the UPCoM exchange. The company has been expanding beyond its core technology and media operations into real estate and infrastructure, aligning with a broader trend of tech firms diversifying into physical assets. The acquisition of VTH’s land in a prime export processing zone supports VNG’s operational expansion and potential new revenue streams.

Strategic Significance

The acquisition of VTH is a strategic move for VNG to secure land for its growing workforce and new business initiatives, such as esports and sports facilities. By gaining control of a 25,000+ m2 plot in Ho Chi Minh City, VNG positions itself to reduce reliance on leased office space and potentially develop commercial real estate. The deal also leverages VTH’s existing real estate expertise, as its main business includes industrial park infrastructure and office leasing. This aligns with VNG’s broader diversification strategy, though the long-term financial impact will depend on execution and market conditions.

What to Watch

• Regulatory approvals: Watch for clearance from competition authorities and other state bodies, which could affect the timeline.
• Completion timeline: Monitor whether the deal closes within the expected Q3/Q4 2026 window.
• VNG’s Q3 2026 earnings: Assess whether the strong profit momentum continues and how the acquisition is financed.
• Land development plans: Look for announcements on specific projects for the Tan Thuan plot, such as esports center or office construction.
• VTH’s financials: Review VTH’s balance sheet and revenue streams post-acquisition to gauge the deal’s value creation.