FPT looks to dial in profits

In its development plan for 2013 and onwards, FPT emphasised generating revenue from tapping new products, services as well as new markets, in which innovation is regarded as the factor helping the group to make differences.

“We will focus on developing the service areas which generate high added values and envisage stable money flows right in current context of economic uncertainties,” said FPT’s chairman Truong Gia Binh.

Accordingly, in light of the group’s approved general shareholder meeting 2013 resolution, this year FPT will strive for new product and service roll-outs, more effectively tapping traditional local market and scaling-up outbound investments across all business areas.

“This will help our group grasp fresh development opportunities and alleviate risks when economic hardships still prevail in the domestic market,” Binh said, adding that the revenue from new markets, products and services was expected to cover 25 per cent of the group’s total revenue within the next three years against the current 7 per cent.

In the meantime, the giant also mulls ramping up investment into research and development (R&D) in 2013 with a view to creating more and more ‘made by FPT’ items winning customers’ trust. FPT’s Board of Directors agreed to set aside 5 per cent of its pre-tax profits to feed R&D activities every year.

“Core areas like software, ICT services, digital content and education still enjoy huge development potential. Thereby, this year FPT will continue hiking investments into service areas and technology development, laying premises for further sustainable growth,” Binh said.

In respect to development targets in 2013, as said by the group’s deputy chairman Nguyen Quang Ngoc, FPT strives to report revenue of VND26.926 trillion ($1.28 billion) and pre-tax profits VND2.646 trillion ($126 million), surging 6 and 10 per cent, respectively, over 2012.

Of this, the revenue from manufacture and distribution of handsets will retain a lion’s share of VND7.755 trillion ($370 million), up 5 per cent while that from manufacture and distribution of IT products come to VND5.930 trillion ($282 million), from telecom services VND3.170 trillion or $151 million (up 15 per cent).

Software development is expected to generate VND2.792 trillion or $133 million (up 19 per cent) of this VND2.132 trillion or $101.5 million will come from software export (up 23 per cent).
Digital content envisages an 18 per cent growth in 2013, reaching VND979 billion ($46 million) revenue.

“This year, FPT also contemplates boosting retail with an estimated revenue of VND2 trillion ($96 million), up 95 per cent over 2012. Towards this goal, the group will strive to increase total number of shops to 100-110 by the year end, 50-60 outlets more than present,” said Ngoc. “By 2015, FPT expects to have in place 150 shops to help cultivate the group brand value.”