I.

COMPANY OVERVIEW
1. Establishment
1.1. VNG Cooperation
The VNG Firm is a technology company that was founded in 2004 with an
emphasis on digital content and online entertainment. Formerly, the business
was called VNG Corporation. The company has proliferated since 2008 and is
now among the fastest-growing in Asia. Its 80 million users are dispersed
across 193 countries and 15 languages.
1.2. ZaloPay
In 2016, VNG launched ZaloPay, an e-wallet that has grown to be one of the
most well-liked in Vietnam, along with the popularity of the Zalo chat
application. ZaloPay is an app with unique features that can be used for
personal and professional use to meet all your payment needs. As of right now,
ZaloPay has alliances with all regional banks and significant e-commerce sites
around the country, including BigC, Tiki, Lazada, and BAEMIN.

(Introduction about ZaloPay, source: https://zalopay.vn/ )

2. Business performance
VNG has established itself as a dominant force in the Vietnamese IT industry,
acquiring recognition for its breakthroughs in digital business, banking,
communications & media, and online gaming. Being Vietnam's first unicorn—
a company valued at $1 billion or more—has been made possible by VNG's
broad business portfolio and diverse business strategy.

(VNG’s performance from 2004 to 2020)

2.1. Before and during the Covid-19 pandemic
VNG
2009–2012: Towards international standards
- 2012: Introduced Zalo, a mobile messaging service; started exporting
"Sky Garden" to increase online game sales to China
- 2011: Agreed to sell the social network game "Un In" to the Japanese
market with DeNA, the top social gaming firm in Japan.
- 2010 saw the official change of the brand name to VNG. The first
Vietnamese-branded massively multiplayer online game in Southeast
Asia, Thuan Thien Kiem, was released in open beta.
- 2009: ZingPlay was introduced.
2013- 2016: Vietnam's first unicorn
- 2015: Started the Vietnam triathlon movement by becoming the first
title sponsor of the VNG IRONMAN 70.3 Vietnam.
 - 2014 saw the launch of Dead Target Zombie which reached a valuation
of USD 1 billion in the World Startup Report, making it the only
unicorn startup in Vietnam.
2017- 2019: From Vietnam to the world
HCMC's VNG Campus officially opened its doors in 2019.
- Establish the new mission of "Build Technologies and Grow People"
together with the new aspiration of "2332." With its three guiding
principles, from Vietnam to the world," accepting challenges, fostering
partnerships, and maintaining integrity
- 2018: New offices were opened in Myanmar and Thailand.
- Changed VinaData's name to VNG Cloud - Started UpRace, Vietnam's
largest community initiative - Introduced Ki-Ki, Zalo's first virtual
assistant (2017)
- ZaloPay e-wallet was introduced
- ZaloPay placed third among the year's payment applications at the 2018
Tech Awards, which were hosted by the VnExpress newspaper. In
contrast, rival MoMo topped the list, followed by ViettelPay.
ZaloPay: During the Covid-19
- To assist its clients in staying safe in the face of COVID-19 danger and social
alienation, ZaloPay has created an online shopping feature.
- After it was tested for six months, the ZaloPay e-wallet was used for more than
10 million transactions, including payments and purchases.
- ZaloPay has experienced rapid expansion, with an estimated growth rate of
36%, particularly during the COVID-19 epidemic. ZaloPay Director Truong
Cam Thanh stated:
“Money transfer and purchase transactions with ZaloPay saw significant
growth. The rationale is that there is a noticeable spike in demand for online
purchasing when social spacing, or restricting exposure, is implemented.
Other partners, such grocery store chains and supermarkets, are also moving
to online sales from direct sales.”
 (Top e-wallets -Penetration rates)
2.2 After the pandemic
VNG
As a result, the net revenue of VNG Joint Stock Company in 2020 was 6,024
billion VND, a 16.3% increase (or 846 billion VND) over that of 2019. This
revenue level is 10% less than the projected revenue level that the company's
shareholders approved at their meeting in June 2020.
Compared to the prior year, profit before and after corporate income tax
dropped by 40% and 57%, respectively, to 255 billion VND and 261 billion
VND.
ZaloPay
- The number of monthly active users of ZaloPay quadrupled in the same period
last year; the number of ZaloPay depositors in Zalo Chat monthly increased ten
times in the last six months of 2020.
- ZaloPay cooperates with strategic partners such as Lazada, Baemin, Tiki,
Sendo, Circle K, and Big C ... in many different fields (e-commerce, shopping,
health, beauty ...). Moreover, in 2020, ZaloPay cooperated with 269 new
partners: Google Play, GS25, Sendo, Be,...
 (Zalo and its partners, source: https://zalopay.vn/)
- ZaloPay became the winner of the Mobile Marketing Association 2020, both
nationally and worldwide. ZaloPay was honored as an "E-wallet with a diverse
ecosystem," voted by Nhip Cau Dau Tu magazine
- Besides, in June 2020, ZaloPay’s donation campaign attracted 16,409
participants with a total donation value of 1.6 billion dongs, ZaloPay itself
donated 1.6 billion dongs, bringing 3.2 billion dongs to the Vietnamese
Fatherland Front.
- In 2022 alone, ZaloPay boasted 10 million regular users. On its official
website, ZaloPay says it has affiliations with 39 banks, financial switching
organizations, Grab Vietnam, and DNSE Securities Company.

(ZaloPay and some affiliated banks, source: https://zalopay.vn/)

(Increasing market share of ZaloPay active users, source: Robocash Group)
3. Global market presence
VNG
VNG globally has offices in Bangkok, Beijing, Jakarta, Taipei, and Shanghai.
When VNG revealed in late August that VNG Limited, which owns 49% of the direct
shares in VNG, had filed an initial public offering (IPO) with the U.S. Securities and
Exchange Commission (SEC) on the technology-focused Nasdaq, the company
grabbed notice.
In 2017, VNG set its sights on the global stage, signing a preliminary agreement with
Nasdaq to explore the possibility of listing in the United States.
This structure reflects VNG’s commitment to inclusivity and engaging a wide
spectrum of stakeholders.
VNG’s IPO is expected to be a resounding success, potentially valuing ListCo VNG
Limited at an impressive 2-3 billion USD and mobilizing around 300 million USD.
While the IPO price has not been determined, the offering holds great promise for
both VNG and its investors.
International strategy of ZaloPay
Mission
At present, ZaloPay lets users link a payment card to make peer-to-peer payments, pay
via NFC, and QR codes, purchase products and services online, mobile top-ups, and
pay their utility bills such as electricity, water, and telecommunication service.
Zalopay standouts from other e-wallets
“Along with creating financial products, ZaloPay also focuses on offering partners
and customers utilities. Most recently, it added a very easy and secure way for users
to register a securities account. In addition to offering a multitude of services, the
2023 unique service is a flexible QR code product that relieves partners' burdens
associated with managing an excessive number of QR codes”, according to Ms. Le
Lan Chi, CEO of ZaloPay.
ZaloPay assigned Mark Morawski their Chief Technology Officer in January 2021 to
further integrate into the fintech industry, become the go-to platform for customers,
and extend its services.
An enormous user base currently exists for ZaloPay; these individuals utilize the
network for peer-to-peer payments, e-commerce, and private communications. Simply
said, ZaloPay can access that massive user base by integrating seamlessly with Zalo.
Current collaboration
Grab is a leading super app connecting customers with a wide range of everyday
services, including transport, delivery, and financial services.
ZaloPay E-wallet and Grab Company Ltd. (Grab Vietnam) formally announced their
partnership to introduce ZaloPay on the Grab app.
The Chief Executive Officer of ZaloPay, Ms. Le Lan Chi, stated, "We will realize our
ideas and launch new practical products to better serve consumers with diverse needs
in the future. The partnership between ZaloPay and Grab Vietnam is a landmark of
2023 in our journey to engender a cashless world."

(January 9, 2023, Vietnam ZaloPay E-wallet and Grab Company Ltd. (Grab Vietnam)
formally declare their partnership to introduce ZaloPay on the Grab app.)

II. COUNTRY NOTEBOOK

1. General country indicators:
Social-cultural:
Roughly 19.7 million people are living in Chile, and their median age is 35.6.
Although Spanish is the official language, certain tribes also speak indigenous
languages. Christianity is the predominant religion, with 68% of people identifying as
Catholics. Chile ranks 44th in the world and has a high human development index.
While Chileans appreciate security and trust in their transactions, they are also
generally open to new developments and technologies.

(Chile, source: https://kids.nationalgeographic.com/ )

Economic:
Chile's economy is strong and stable, with a GDP per person of $14,896 in 2021.
Mining, services, manufacturing, and agriculture are the primary industries. Chile has
free trade agreements with numerous nations, including Vietnam, making it one of the
most open and competitive economies in the world. In 2021, 1 USD will be worth
785.9 CLP, a stable exchange rate, and Chile has a low percent inflation rate of 3.8%.
With a modest income disparity and a low poverty rate of 4.8%, Chile has a 0.43345
Gini coefficient.
(Chile: Growth rate of the real gross domestic product (GDP) from 2018 to 2028,
source: https://www.statista.com/)
Technological:
With a high internet penetration rate of 88.5% and a smartphone penetration rate of
74.8% in 20215, Chile boasts a well-developed infrastructure. In the Global
Innovation Index 20216, Chile is ranked 54th, demonstrating an excellent capacity for
innovation. Chile, which is ranked 38th in the Digital Adoption Index 2020, has a
regulatory framework that is favorable to digital transformation.

(The State of Markets for Technology in Chile, source: https://www.scielo.cl/)

Financial:
The financial system in Chile is robust, stable, and has a high degree of financial
inclusion. In the 2019 Financial Development Index, Chile comes in at number 13. As
of 2020, 18 banks were operating in Chile, demonstrating the country's competitive
and diverse financial landscape. With 113 fintech companies by 2020, Chile
announces a thriving and expanding fintech ecosystem that provides solutions for
loans, payments, personal finance, and other areas.

(Fintech adoption rate in Chile in 2023, by type of technology, source:

https://www.statista.com/ )
Political:
With a two-chambered parliament and a presidential government, Chile has a
democratic and representative political structure. As per the 2020 Democracy Index,
Chile is ranked 25th. The social climate in Chile is stable, tranquil, and free of both
violence and corruption. Chile is ranked 38th in the Global Peace Index 2020 and 26th
in the Corruption Perceptions Index 2020. Chile has cordial ties with its neighbors and
important allies and pursues a constructive and cooperative foreign policy.
2. Potential product market indicators:
Barriers to entry:
In particular, Chile has few obstacles for foreign businesses looking to enter the digital
wallet market. Through a free trade agreement, Vietnam and Chile can trade products
and services with no tariffs and fewer non-tariff trade barriers. In addition, Chile,
which is ranked 59th in the Ease of Doing Business Index 2020, offers a business
environment that is also conducive. Value-added tax is 19% and corporate income tax
is 25% in Chile's straightforward and open tax system. With strong intellectual
property protection and robust contract enforcement, Chile boasts a modern, adaptable
legal system.
Infrastructure requirements:
- The digital wallet business in Chile has high standards for infrastructure, particularly
with regard to interoperability, security, and connectivity. Chile boasts a dependable
and high-quality mobile and fixed broadband network, with an average mobile speed
of 24.8 Mbps in 2021 and an average fixed broadband speed of 65.9 Mbps. Chile
ranks 35th in the Global Cybersecurity Index 2020, indicating that it has a high degree
of cybersecurity as well.
- Some of the infrastructure requirements for digital wallets in Chile are:
● Connectivity: To access accounts, make payments, and get notifications, users
of digital wallets need a dependable, fast mobile network and internet
connection. In 20212, Chile has a high rate of smartphone penetration (74.8%)
and internet penetration (88.5%), indicating that the majority of the population
has access to digital wallets via their devices.
● Security: High security is necessary for digital wallets in order to shield user
information and money against theft, fraud, and cyberattacks. According to the
Global Cybersecurity Index 20203, Chile has a strong cybersecurity posture,
coming in at number 35. Chile also boasts secure chip and PIN technology,
which encrypts cardholder data and carries out cryptographic calculations to
safeguard network and terminal connectivity.
● Interoperability: High levels of interoperability are necessary for digital wallets
in order to allow users to pay with them on various platforms, devices, and
retailers. Due to the widespread CoDi QR code standard, which enables
customers to make payments by scanning a code produced by the payer or the
merchant, Chile has a high degree of interoperability.
● Regulation: For users of digital wallets to conduct business lawfully and
securely in the market, a clear and supportive regulatory framework is
necessary. Because the Financial Market Commission (CMF), which oversees
the country's financial industry, has regulations defining the conditions and
steps for acquiring a license, Chile offers a proactive and friendly regulatory
framework for digital wallets. In addition, Chile has laws protecting consumers'
rights, privacy, and interests in digital wallet services, as well as laws against
money laundering, counterterrorism financing, and data protection.
● Market size and growth: Chile has a sizable and expanding market for digital
wallets due to the country's high consumer and merchant demand for quick,
easy, and safe online payments.

(Chile Prepaid Card and Digital Wallet Business and Investment Opportunities
Databook, source: https://www.researchandmarkets.com/ )
● Competitive landscape:
The digital wallet market in Chile is competitive and diverse, with local and
international competitors providing various value propositions and solutions. In
Chile, Mercado Pago, PayPal, Google Pay, and MACH Pay are a few of the
most popular digital wallets. One of Chile's biggest banks, Banco BCI,
introduced MACH Pay, a digital wallet and prepaid card.
 (On the left: MACH, on the right: Mercado Pago)
3. Chile’s potential for penetration
The establishment of a regulatory sandbox by the Chilean government, which enables
fintech companies to test their goods and services in a controlled setting with less
oversight and regulation, is another way the government has assisted the business.
Along with offering legal stability and consumer protection, the sandbox seeks to
promote innovation, competition, and inclusiveness in the financial sector.
For instance, the government has offered tax advantages and subsidies in the form of
digital wallets to boost the productivity and competitiveness of SMEs.
It is expected to increase at a 14.1% compound annual growth rate (CAGR) to reach
$8.84 billion by 2027. In addition, the growth of digital wallets in terms of payment
volume jumped by 32% last year, suggesting a notable increase in user numbers.
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