Galaxy Education Raises $10M To Expand AI-Powered Learning In Vietnam
Vietnam’s Galaxy Education (GE) has raised nearly $10 million from East Ventures and other investors to scale its national English as a Second Language (ESL) program. The move supports a government push to improve English skills in public schools and underserved areas.
Founded in 2020 after acquiring HOCMAI, GE now operates three brands—HOCMAI (K-12), ICAN (language & tech literacy), and FUNiX (online workforce training). As of early 2025, GE serves 8 million learners in Vietnam and 34 countries, and became profitable in Q1 2025.
At the heart of its strategy is ICAN, an AI-powered platform that personalizes learning and supports teachers in real time. The goal: make high-quality education accessible and scalable across Vietnam.
This funding reflects growing investor confidence in Vietnam’s edtech sector, where startups are increasingly blending technology, policy alignment, and social impact.
VNG Targets VND 10.773 Billion Revenue In 2025, Leans Into AI And Global Expansion
VNG is making a strong comeback. After posting a net loss in 2023, the company reported VND 9.3 trillion in consolidated revenue and VND 302 billion in adjusted net profit in 2024. Looking ahead, VNG has set a 2025 revenue target of VND 10.773 trillion, aiming for a 19% annual growth rate despite a volatile tech environment.
Driving this momentum is strong performance across core businesses. Online gaming remains the company’s largest revenue stream, with 74.3 million quarterly active users and a 37% jump in game development bookings. Zalo continues to dominate as Vietnam’s most used messaging app, with 77.8 million users and nearly 2 billion messages sent daily. Meanwhile, ZaloPay has seen explosive growth, with a 1,531% increase in QR code payment value and 149% rise in personal finance services.
VNG is also doubling down on artificial intelligence and international expansion as key growth pillars. The company has invested in infrastructure like the GreenNode AI Cloud and built its own GPT-4-level language model, KiLM, in just six months. AI-powered features such as translation and avatar AI are already used by 15 million Zalo users—about 20% of the platform’s total base. On the global front, VNG is pushing into markets like Southeast Asia, Taiwan, Hong Kong, and the U.S., with a focus on gaming and enhanced localization powered by AI.
This marks VNG’s evolution from a gaming firm to a broader tech player, focused on innovation, sustainability, and global scale.
Vietnam Approves New International Financial Centers In HCMC And Da Nang
On June 27, 2025, Vietnam’s National Assembly approved the launch of International Financial Centers (IFCs) in Ho Chi Minh City and Da Nang. Set to open on September 1, these centers aim to position Vietnam as a competitive financial hub in Asia, backed by special policies and regulatory incentives.
Da Nang City is exploring the use of the ICT building in Da Nang Software Park No. 2 to host financial center activities. | Source: VGP/Minh Trang for the Government Online Newspaper.
Each IFC will house a full financial ecosystem—including commercial and foreign banks, securities, insurance, fintech, and digital asset firms. They’ll also be authorized to operate multi-asset trading platforms for commodities, carbon credits, rare metals, green finance, and cultural assets.
To attract global players, the government is offering generous tax incentives: corporate tax rates as low as 10% for 30 years in priority sectors, personal income tax exemptions until 2030 for qualified experts, and multi-year tax holidays. Capital mobility is also prioritized, with free use of foreign currencies and no restrictions on transferring foreign capital. Long-term visas and work permit exemptions will support international talent recruitment.
A key highlight is the regulatory sandbox, which allows fintech firms to test new products without full licensing—encouraging innovation and speeding up product-market fit.
With these moves, Vietnam is signaling its ambition to compete in green finance, fintech, and cross-border capital markets. Execution, legal clarity, and transparency will be critical to building long-term investor trust.
Vietnam Passes Law To Boost Science, Technology, And Innovation
Vietnam’s new Law on Science, Technology, and Innovation, passed on June 27, 2025, aims to fast-track research and commercialization. It prioritizes building R&D infrastructure like national labs and university innovation hubs, while strengthening ties between academia and industry.
The law offers legal protection for researchers from criminal liability in approved experiments and promises clearer risk guidelines ahead. It also provides incentives to attract global talent, allowing researchers to commercialize their work and earn at least 30% of the revenue, with potential tax exemptions.
This move signals Vietnam’s intent to become a leading innovation-driven economy. Its success will rely on strong execution, coordination, and continued investment.
Vietnam Eyes Upper-Middle-Income By 2026, High-Income By 2045
Vietnam is set to cross into upper-middle-income status by 2026, with its 2023 GNI per capita just below the World Bank threshold. To reach high-income status by 2045, the country must sustain 5% annual GDP growth.
According to World Bank classifications for FY2025, upper-middle-income economies have a Gross National Income (GNI) per capita between $4,516 and $14,005. Vietnam’s GNI per capita in 2023 stood at $4,110—just below the threshold.
Three growth scenarios outline Vietnam’s path to high-income status: with 6% annual GDP growth, it could reach the target by 2042; with 7%, by 2040; and with 8%, by 2038. Each scenario assumes continued political and economic stability similar to the 2017–2024 period.
Policymakers are advised to take a cautious, steady approach. Overheating the economy or misusing resources could lead to instability, while sustainable, disciplined growth is seen as the key to long-term success.
Backed by strong past performance and realistic planning, Vietnam’s path to prosperity is credible—if discipline and policy consistency are maintained.
Genesia Ventures is an early-stage venture capital firm operating in Japan and Southeast Asia, with a strong belief in the long-term potential of Vietnam’s digital economy. Beyond providing capital, the fund actively supports startups through strategic guidance and connections to a broader regional network.