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Being Digital Transformation Consultant, FPT enhances global competitiveness

29/03/2019

On March 29th 2019 – Today, in Hanoi, FPT Annual General Meeting 2019 has approved the development plan of FPT period 2019-2021. The event marked a developing step of FPT with the vision to become the global supplier of digital transformation service.

FPT focuses on digital transformation consultant, FPT enhances global competitiveness

Digital transformation, which is booming all over the world is an important method that helps organizations achieve more success in Revolution 4.0. According to IDC, until 2022, the market size of digital transformation will reach USD 2.000 billion with growth rate 4 times higher than average growth rate off IT service market. In 2018, the quote for digital transformation reached USD 1.300 billion, increased by 16,8%, while IT service market reached USD 1.000 billion and only increase by 4%.

With unlimited potential and opportunities. FPT defined that digital transformation help company breakthrough in position, capability, and growth scale which enhance global competitiveness. Thus, from the beginning of 2019, FPT will shift from IT service providers to global digital transformation services provider. Vision of FPT within next 10 years is in the top 50 company that provide global digital transformation services. In the period 2019-2021, FPT targets:

  1. Enhance value and position of FPT by provide valuable service such as global digital transformation consultant and strategy.
  2. Expose to big worldwide company to provide global digital transformation consultant and other product and service of FPT. Have more 30 enormous customers in the list of Fortune Global 500 each year.
  3. Reach growth rate of 15% each year
  4. Complete package/chain catalog about resolution, service, product in digital value chain service in next 2 years

Chairman of FPT’s BOD Mr. Truong Gia Binh stated that “FPT used to pioneer in create new pathway in IT service in Vietnam, such as software export, which do not only upgrade the position of FPT but also build up reputation for Vietnam worldwide. In digital revolution, FPT has many advantages to breakthrough.  These are customer understanding, the ownership of core technology foundation, and consultancy from top global digital transformation experts, especially with the consultancy of Mr. Phuong Tram, who had directly manage and carried out the global digital transformation of DuPont Corporation, one of the successful company in digital transformation in the world. Consultant Capability of processing digital transformation is prove throughout the cooperation with top global companies, included many customers in Fortune Global 500. We are ready and confidence in achieve digital transformation climax, target to become the global consultant of digital transformation service like Accenture, Deloitte, so on, which leverage Vietnam to equally compete with global IT companies.

To achieve these goals, FPT planned to take action in 4 directions:

  1. Continue to invest in researching and enhancing the consultants capability in digital transformation to have further knowledge about different careers, business model as well as technology knowledge, tools to carry out the project which bring value and particular benefit to customers at the beginning of digital transformation process.
  2. Pioneer in doing research and develop the most important core technology foundation of digital transformation and digitalized service; doing practical experiment and continuously improve into practical resolution to meet different need of market.
  3. Focus on completing service and product resolution for digital transformation process of organizations; exploiting advantages from connecting knowledge power and service from subsidiaries and IT ecology system that FPT has been built and nurtured.
  4. Shift FPT towards digitalized company which operates based on real time data.

Enhance young leaders with preparation to breakthrough in digital Revolution.

At Annual General Meeting 2019, FPT has officially announce new leader team including 2 Chief Executive Officers, 02 Deputy General Director, 06 Managing Directors. Hence, Mr. Nguyen Van Khoa has officially become Chief Executive Officer since today March 29th 2019. With the young energy and spirit, the ability to form human resources and experience in carrying out many business project of FPT subsidiaries. Mr. Khoa along with BOMs will inspire and lead FPT to reach the goals effectively and desperately.

Target the growth rate of revenue and profit by 15% and 16%

FPT Annual General Meeting 2019 has approved the business plan of the year 2019 with growth rate of revenue and profit by 15% and 16%, respectively, achieved VND 26,660 billion and VND 4,460 billion. Meanwhile, anticipated in revenue and profit in Technology reach VND 15,450 billion and VND 1,933 billion, accounted for 60% off total revenue and 43% of total profit of the whole corporation.

Annual General Meeting has also approved the report of BODs, Managing Department as well as activity budget and income of BODs, Managing Department, Independence Audit Company has checked the Financial Report off the year 2019. Annual General Meeting has approved the dividend rate of the year 2018 is 30%, while dividend in cash equals to 20% (2.000 VND/share) and 10% is paid in share. Specifically, dividend in cash was already paid in 2018. 10% left is planned to be paid in Second Quarter of the year 2019. Besides, dividend by share with 10% from profit is planned to be paid in Second Quarter of the year 2019.

In 2018, FPT marked a significant impression in digital transformation strategy with DT revenue increased by 31% compared to last period, accounted for 20% total revenue in software exporting activities. Digital transformation was applied simultaneously in FPT and FPT’s subsidiaries, which mainly focused in 2 aspects: procedure digitalization, internal business to enhance customer experience and optimize the efficiency of FPT and improve business growth rate. FPT became the first and only organization that owns artificial intelligence foundation FPT.AI. In 2018, this foundation has received 3.4 million requests per month. There is 7.720 coders working on this foundation and almost 155.000 hour speaking voice is being used by our partners.

At the end of 2018, FPT record consolidated revenue with 23.214 billion VND, increased by 17% compared with 2017; profit before tax reach 3.858, increased 31% compared to 2017 in the same comparison condition (Business report of the year 2017 do not include the withdrawal from FPT Retail and Synnex FPT but united with two company by owner’s equity method). International revenue and profit continued to grow fast, equals to 9.109 billion VND, increased by 27% and 3.356 billion VND, increased by 35% compared to last period. Profit margin of the company reached 16,7%, equals to 1.7 times compared to 2017.