FPT Chairman: DC5 opens boundless opportunities for FPT and all organizations
Hanoi, April 6, 2023, FPT's 2023 Annual General Meeting of Shareholders (AGM) was held in a hybrid format with a mixture of in-person and remote attendees. The 2023 AGM approved several important issues, including: The strategic orientations 2023 - 2025 and the 2023 action plan; the 2022 profit distribution plan and the 2023 dividend payment policy; the remuneration of the Board of Directors (BOD); the employee stock ownership plan (ESOP); the amendment of the Corporate Charter and Internal Regulations on Corporate governance...
FPT's 2023 Annual General Meeting of Shareholders (AGM) was held in a hybrid format on April 6, 2023
The DC5 strategy opens boundless opportunities for FPT, all organizations, and individuals
According to the latest forecast by Gartner, Worldwide IT spending is projected to increase 5.1% to 4.6 trillion USD in 2023, which is greater than the 2022 growth rate of 3%. This is due to stronger demand as enterprises push forward with digital business initiatives in response to economic turmoil. Global DX spending is forecast to reach 3.4 trillion USD in 2026 with a five-year compound annual growth rate (CAGR) of 16.3%, according to the IDC.
According to the latest report of the Enterprise Development Agency (under the Ministry of Planning and Investment), almost all businesses in different industries are engaged in some form of digital transformation. However, only a few enterprises (accounting for 2.2%) have successfully leveraged technologies and management systems to handle data and make decisions in production and business. VnDirect Securities Company forecasts that public investment disbursement will witness a bright spot in 2023, with an increase of 20-25% compared to actual disbursement in 2022.
Under the circumstances, FPT kicks off the DC5 strategy. DC5 stands for Digital Conglomerate 5.0, a digital union with the ultimate goal of creating satisfaction for individuals, success for organizations, and moreover, prosperity for the nation. This strategy aims at the following key objectives:
- FPT continues to promote the development of digital transformation solutions that combine self-built products (Made by FPT) with those offered by its partners to improve the work performance of organizations and individuals.
- The Digital Union will be established to bring the best and most true-to-life experiences, products, and services to individuals, organizations, and companies, based on five core components: AI - intelligent services; Data - with diverse data lakes and integrated, interconnected services of FPT and its partners; Identification - each end-user is a fully identified individual; Communication – multiple channels; Touchpoints - Smart and convenient gateways to interacting between suppliers and users.
- DC5 will bring together the best technologies and solutions, along with the knowledge and insights FPT accumulates through large-scale projects in various domains deployed in Vietnam and internationally.
- By 2035, FPT expects to reach one million digital transformation workers participating in the Digital Union, strongly accelerating domestic and global digital transformation.
Mr. Truong Gia Binh, Chairman of FPT, inspired the audience with the DC5 strategy
FPT Chairman Truong Gia Binh said: "At the age of 35, there are three important things for FPT. Firstly, it is about seizing the unprecedentedly great opportunity in sight. Secondly, it is about the DC5 strategy (Digital Conglomerate 5.0) and data intelligence. Thirdly, the most significant thing is the happiness of each of FPT employees. Accordingly, we set an ambitious objective - having one million employees in 2035. Of course, the long road will be full of thorns and potholes. But I can imagine the shining smiles of our students and teachers, our staff and customers, business owners and investors, domestically and globally. We all, the FPT people, will try our best so that no difficulty or adversity can extinguish happy smiles."
The ambitious growth plan for 2023
According to the International Monetary Fund (IMF) forecast, the global economy remains historically fragile in 2023. In particular, the Russia-Ukraine conflict, the cost-of-living crisis, and China's economic slowdown will continue to create a period of economic, geopolitical, and ecological "turbulence".
Against a challenging background, FPT Corporation set aggressive targets of 52,289 billion VND in revenue, up 18.8%, and 9,055 billion VND in profit before tax, an increase of 18.2%. The Technology sector continues to lead the growth with expected revenue of 31,150 billion VND, up 20.9% over the same period, and profit before tax of 4,166 billion VND, up 23.8% over the same period last year. To achieve the growth targets, the Corporation will continue to invest heavily in developing new products, platforms, and solutions based on core technologies such as Cloud, AI, Blockchain... and focus on expanding sales channels in various domains in Vietnam and abroad.
Mr. Nguyen Van Khoa - CEO of FPT Corporation - clarified the 2023 action plans
Mr. Nguyen Van Khoa - CEO of FPT Corporation - emphasized: "FPT will maintain its sustainable growth in 2023. In order to materialize business objectives, the Corporation will turn FPT into a happy workplace by establishing a technology platform for employees to promote regular interactions with their colleagues and managers. This platform can measure each individual's satisfaction level, thereby enhancing team cohesiveness. Besides, technology will also be integrated into internal operations to increase labor productivity. The Corporation will also increase investment in talent hunting and human resource development programs. Business leaders of each sector will also put all their resources into seizing every opportunity to ensure stable growth. The Technology sector aims for large-scale contracts valued at tens of million USD to hundreds of million USD in the US, Japan, and Europe. The annual investment for M&A deals and global expansion is expected to be 35 to 50 million USD. In addition, digital transformation will also be accelerated to build a happier future for the Government, Enterprises, and People. The Telecommunications sector will invest heavily in infrastructure and submarine cable systems as well as accelerate the investment process to compete with other service providers. The Education segment continues to expand in Vietnam and abroad, giving learners the best experience possible".
The 2023 AGM approved the 2022 profit distribution plan and the 2023 dividend payment policy, the employee stock ownership plan (ESOP) in the 2023-2025 period, and the amendment of the Corporate Charter and Internal Regulations on Corporate governance.
The AGM was conducted with the support of UVote - A new generation of meeting and voting solutions in the Made-by-FPT ecosystem. It helped the Organizing Committee and shareholders save 50% of time at all stages, such as sending invitations, identifying, creating and giving voting forms.
The remote attendees gave questions to the AGM
In 2022, FPT's revenue and pre-tax exceeded the set goals. To be more specific, revenue reached 44,010 billion VND, increasing by 23.4% over 2021. Profit before tax was 7,662 billion VND, up 20.9% compared to the same period in 2021. Revenue from overseas IT services was 18.935 billion VND, an increase of 30.1%. DX revenue was 7,349 billion VND, up 33% over 2021. Earnings from Made-by-FPT FPT products and solutions based on leading technologies such as AI, Cloud, and Big Data... also grew impressively by 54.3%. Revenue growth showed the high applicability, reliability, and flexibility of FPT's digital transformation products and services in all fields, such as e-government, transportation, healthcare, finance, and banking.
Along with ensuring stable economic growth, in 2022, FPT also brought practical values to 47,777 people nationwide through meaningful volunteering activities. Nearly 200 orphans losing their parents due to Covid-19 from 41 provinces and cities nationwide experienced their first academic year at the Hope School established by FPT and the Hope Foundation. More than 12,000 young talents received scholarships to pursue their ambitions. More than 9,000 children in upland areas got help to keep their passion for education and sow seeds of hope for a bright future through the "Give wings to your dreams" program...