Vietnam's leading technology firm VNG Corporation, formerly known as VinaGame, has addressed reports that police unexpectedly visited the company's headquarters last week.
Founded in 2004, VNG has established itself as one of Southeast Asia's most prominent Internet companies. Operating popular platforms like Zing and Zalo, the firm plays a central role in Vietnam's dynamic digital sector.
However, on September 6th the company acknowledged that police from Ho Chi Minh City's Department of Public Security had arrived unannounced to conduct an inspection at its sprawling VNG Campus office complex in District 7.
In a brief statement, VNG said the nature of the police's visit was currently unclear, but the firm was cooperating fully with authorities. Operations at the headquarters were continuing as normal, a representative assured.
No disruption to business
Sources indicate the sudden police presence related to an ongoing investigation, though details remain sparse. In the interim, VNG stressed there had been no disruption to daily business or services.
As Vietnam's digital economy matures at pace, regulatory oversight of tech corporations is tightening in line with international norms. It's not unheard of for police to inspect premises linked to sensitive compliance issues.
At this stage the specific focus of the VNG inspection isn't known. However, the company has built a strong reputation for integrity during its ascent over the past two decades.
Its reach into almost all Vietnamese households through popular services like Zing and Zalo necessitates robust governance standards. For now VNG appears unperturbed, expressing trust the matter will be resolved swiftly.
Share price reaction
On stock markets the situation caused initial unease, with VNG's share price plunging almost 13% upon the news. At one stage trades on the Unlisted Public Company Market halted pending clarification.
However as the day progressed and the company reassured on steady operations, investor confidence was restored. By mid-afternoon the share price had recovered most lost ground.
With no evidence of major wrongdoing, the market seems to view this as a routine compliance review that will likely yield no long-term ramifications for VNG. Its stature and track record lend credibility to this perspective.
Still, some overhang of uncertainty will remain until police conclude their work and any findings are disclosed. As one of Vietnam's flagships in digital transformation, VNG attracts close scrutiny of its governance standards.
For now the tech leader is relying on this strong reputation of integrity as it cooperates fully with authorities. With business said to be steady, it appears to have weathered any disruption from the surprising visit by the authorities last week.
