CMC Corporation: a pioneer in AI transformation

What key factors have contributed to CMC's success in the 14 years since becoming a listed business?

CMC stands is one of only two IT companies in Vietnam recognised in Forbes Vietnam’s Top 50 Best-Listed Companies in 2024. This marks the first time CMC has received this prestigious accolade, underscoring investors’ trust and confidence in us.

Beyond our impressive business performance, a significant reason for the recognition is CMC’s proactive embracement of AI transformation, delivering AI consulting services and technological solutions across Vietnam and globally.

Having been in operation for 31 years, CMC has continuously evolved, particularly lately, when we have been leading the way in embracing new technological waves such as AI, IC design, cloud computing, and cybersecurity. In 2017, we launched our digital transformation strategy, and today, we are advancing to the next stage - AI transformation.

CMC achieved remarkable financial results last year. Despite a slight dip in net revenue to over VND8 trillion ($335 million), our pre-tax profit soared to almost VND550 billion ($23 million), the highest amount since listing on the stock exchange. In the second quarter of 2024, our share price surged following news of our partnership with Nvidia. Alongside FPT, our share price consistently reached record highs, contributing to a wave of tech stock appreciation, despite the broader market’s stagnation.

CMC now is a top technology conglomerate in Vietnam, with around 10 member units focusing on four strategic business areas: digital infrastructure, solutions and technology, global business, and research and education. Today, CMC operates at a regional scale, with revenues and corporate value estimated at $400 million.

We are proud that CMC’s presence spans over 30 countries and continents, including Japan and South Korea. Moving forward, we plan to expand our international footprint by establishing more subsidiaries.

CMC also owns more than 20 core technologies, such as a FaceID technology, ranking 12th globally by the US National Institute of Standards and Technology. This capability enables us to meet the diverse needs of thousands of partners and customers.

How are the current AI transformation trends impacting Vietnam?

AI is not a new technology; its research dates back to the 1960s. However, recent advancements, particularly in generative AI models, have significantly impacted every aspect of society. Earlier this year, when I attended the Davos Conference, AI emerged as the central theme among discussions by global leaders, scholars, and the global business community.

Both the EU and the US are pushing for new AI-related legislation in response to its profound and widespread impacts, as well as the inherent risks it poses. This requires a balanced and responsible approach to AI development.

Chinh, (third from right), speaking about CMC's AI transformation strategy

AI transformation is also being vigorously pursued in many countries within the region. For instance, South Korea launched a national AI transformation initiative in 2022, solidifying its position as a leader in e-government, digital government, and now, AI transformation.

Service providers are increasingly embedding AI into their products and services to enhance business productivity, better understand customer needs, and create new value.

In Vietnam, AI also has strong influence across all sectors, from government to enterprises and everyday life. The technological advancements of this new era have significantly streamlined tasks and processes that were previously challenging for humans to manage.

Looking ahead, AI will continue to evolve, making further strides in assisting human life. To reduce the unfamiliarity and novelty of these advancements, individuals, organisations, and businesses must anticipate the future trends of AI, which are likely to emerge in 2024.

CMC is beginning a comprehensive transformation with AI technology, starting with CMC University. Will this cover the company’s four core business areas?

CMC Corporation has been making investments in research and development and applying new technologies.

In July, we started to transform CMC Digital University to an AI university, committing to applying AI in operations, teaching, and enhancing student experiences. This transition is a critical step, reflecting our commitment to integrating AI into every aspect of university life, from management, teaching, and learning to research and student engagement.

The AI university model is not just about teaching AI or offering AI-related majors. More importantly, it’s about using AI technology to comprehensively transform a university’s operations, from teaching and learning to administration.

Similarly, in our core business areas, we have begun transitioning all activities to an AI platform. We have established dedicated AI-transformation, or AI-X, units and integrated AI applications into financial management, human resources, and operations.

For example, the C-Meet application developed by CMC ATI is an AI-driven technology solution that converts speech to text and can produce meeting minutes immediately after each meeting.

Besides internal AI transformation, CMC’s top technology experts can provide AI consulting services and solutions, both made by CMC, and those of our partners companies to our clients. Some notable products include C-OCR for Vietnam's social security; C-LS, an AI-based software designed to detect overlaps and conflicts in legal documents; and C-OCR for the automotive industry.

CMC is also proud to be among the first Vietnamese telecommunications companies to provide AI infrastructure platforms to numerous prominent corporations domestically and internationally.

What are CMC's strategic priorities, and how does AI fit into its objectives?

We are aware that AI is a fundamental driver of sustainable growth and innovation among businesses. Our strategy begins with fostering an AI transformation culture internally, nurturing a modern work environment within the company, and training a high-quality workforce capable of adopting and applying AI technology in daily operations.

This approach reflects CMC’s commitment to continuous learning, improvement, and the application of the most advanced technologies. This enables us to deliver groundbreaking solutions that enhance efficiency, optimise business processes, and meet the needs and expectations of our customers.

CMC promotes international cooperation to develop AI technologies and solutions

CMC is committed to this revolutionary transformation, not only within Vietnam but also globally. In our corporate strategy, we have identified key areas for development, including AI/DX and Cloud Computing. To achieve this, CMC has received training programmes from our partners in Japan, South Korea, and the US to build a highly trained IT workforce.

To date, our expert team has successfully executed over 2,000 IT projects, with more than 90 per cent completed on time across various sectors. Now, our focus is on helping businesses maximise the benefits of digital transformation through AI technology.

CMC has delved deeply into researching new technologies, creating an ecosystem of over 20 core technologies that effectively support business digital transformation efforts globally. A standout feature of CMC's products and services is the integration of AI technologies, which significantly enhances efficiency, fosters innovation, ensures high quality, and saves time and costs in the long term.

According to our strategic direction, the AI-powered management platforms developed by the CMC ATI Institute will become more sophisticated, providing businesses with enhanced monitoring capabilities and responsive measures to a growing array of cybersecurity and data protection risks.

In Vietnam, CMC is recognised as one of the top technology enterprises. However, on a global scale, we acknowledge that we are still at a mid-level compared to the largest international companies.

By 2028, our goal is to transform CMC into a global digital corporation with a scale of billions of dollars and a workforce of 10,000-15,000 employees.

My greatest concern is how to expand CMC's global influence. This requires us to grow the company at a substantial rate and make a significant global impact by offering products and services sourced from Vietnamese ingenuity that will be utilised worldwide. And AI technology aligns perfectly with the capabilities of both CMC and the people of Vietnam, making it a focal point for our future endeavours.

NIC shake hands with CMC to develop digital talent Minister of Planning and Investment Nguyen Chi Dung beat the drum to open the first course at CMC University.

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