“With the results achieved in 2020, youth, creativity, solidarity, and dedication, we are committed to achieving the revenue and profit targets set in 2021, helping FPT to grow steadily and endure,” shared Nguyen Van Khoa, general director of FPT at the 2021 annual general meeting of shareholders, held online on April 8.
In 2021, FPT set a plan for sustainable growth with increases of 16.4 per cent in revenue and 18 per cent in pre-tax profit. The group also continues to ensure the rate of cash dividend at 20 per cent even as the COVID-19 pandemic is not completely under control.
Besides, the group determined that the technology sector will continue to be its main growth driver due to the strength derived from digital transformation services as well as the group of products and solutions made by FPT.
Proactive, fast, drastic, and compliant
Discussing the group's business results in 2020, Khoa said, “We moved from peacetime to wartime, with battlefields on all fronts. FPT brought into play the strength of youth and creativity as one of our strengths, accelerating the war.”
Not only did FPT stay on track to its business targets, it has also found new growth drivers, ensuring the group’s sustainable growth in the long-term.
One of FPT’s new growth drivers in 2020 was optimal governance. In order to maintain unified and transparent operations and working towards the real-time company model, FPT accelerated its internal digital transformation. This is also one of the important factors that helped FPT be proactive and flexible in developing timely response scenarios to the COVID-19 pandemic.
|FPT's 7x-8x-9x leadership team is working harder than ever, bringing into full play all their abilities to make dreams and ambitions come true |
In 2020, 31 internal digital transformation projects related to the automation and digitisation of business processes, customer care management, and human resources management were deployed throughout the group and its subsidiaries.
Internal digital transformation projects helped the group and its affiliates save VND170 billion ($7.4 million) in costs, support operations with reports extracted in real time, reducing report implementation time by 98 per cent. The transformation helped increase labour productivity. For example, the productivity of the customer care technician team increased by 25 per cent in the telecommunications service sector. In addition, fewer employees left the company, with the rate in IT services for foreign markets decreasing from 27.2 per cent in 2019 to 17.5 per cent in 2020.
According to the International Finance Corporation (IFC), effective corporate governance can help improve business performance and at the same time enhance the efficiency of decision-making, laying the foundations for sustainable development.
The recently released Corporate Governance Review Report of listed companies showed that companies with the best corporate governance scores have return on assets and return on equities (ROA and ROE) ratios that are almost two times higher than businesses with a low corporate governance score.
FPT sets out sustainable growth strategy
For 2021, FPT set the targets of VND34.72 trillion ($1.5 billion) in revenue and VND6.21 trillion ($270 million) in pre-tax profit, up 16.4 and 18 per cent on-year. This growth will also be sustainable, which FPT hopes to maintain in the long term, especially when the world is entering the digital era, bringing golden opportunities for technology companies like FPT.
To achieve the above target, FPT develops balanced and comprehensive action programmes in all three aspects of business, technology, and people. Specifically, in the business aspect, the group will focus on providing comprehensive digital transformation services and solutions from consulting to implementation, developing and expanding the group of Made by FPT solutions.
In 2020, revenue from the ecosystem of 77 products and solutions made by FPT grew 51 per cent, becoming one of the key growth drivers of the group in the long term.
|FPT holds the 2021 annual general meeting of shareholders held online |
In technology, FPT focuses on developing platforms and core technologies, increasing customer experience, technology-based operational efficiency, as well as continuing to promote research, developing in-depth solutions based on AI, cloud, blockchain, and low-code.
In 2020, FPT established two subsidiaries, FPT Smart Cloud and FPT Digital. FPT Smart Cloud focuses on Cloud Computing and AI to make the best use of the vast potential of the group’s core technology segments. Meanwhile, FPT Digital provides consulting services on a comprehensive digital transformation roadmap to help complete the value chain of the IT service and strongly promote the strategic business segment of the group.
Realising that people drive growth and generate results, FPT is further strengthening its team of engineers and experts with in-depth technology experience in industries and practical experience.
In 2020, the group succeeded in attracting a team of leading doctors and technology engineers in the AI and cloud sectors, contributing to the added value of long-term projects. At the same time, the group constantly adds and rotates its leadership team to lead the group to overcome difficulties and maintain growth.
Khoa affirmed, “2020 posed unprecedented challenges for businesses. However, we realised that this was also an unprecedented opportunity for FPT as all organisations, enterprises, and countries are beginning digital transformation. They invest an average of $15 billion per week in IT amid the COVID-19 pandemic.”
“As leading digital transformation group, FPT is definitely the focus of this global trend. As a leader, we are determined to turn that opportunity into reality by making decisions and taking action timely. FPT's 7x-8x-9x leadership team is working harder than ever, bringing into full play all their abilities to make dreams and ambitions come true. By inheriting the foundation and promoting youth and solidarity, the Young Leadership Board hopes that FPT will firmly establish its position and develop sustainably.”