FPT to focus on digital transformation

April 10, 2018 | 15:56
FPT Group will focus on its core segment: technology, specifically digital transformation, after reducing its ownership rates in FPT Trading and FPT Retail.
fpt to focus on digital transformation
FPT reduces its ownership rates in FPT Retail and FPT Trading for focusing on digital transformation

Digital transformation is expected to help FPT's continued growth and preserve its position as the leading tech group in Vietnam which it has been holding for the past 30 years. Therefore, despite no longer being the major stake-holder of the two “golden geese” (47 per cent in FPT Retail and 48 per cent in FPT Trading), FPT’s leaders still believe in the group’s development.

“Large businesses' digital transformation demands are growing unprecedentedly. Some of these businesses decided to sign with FPT in only two months, while previously they spent 2-3 years to find partners in the same segment,” Truong Gia Binh, chairman of FPT Group, said at FPT’s annual general shareholders' meeting on March 28.

Binh also added that the number of FPT’s partners within the Fortune Top 500 group in 2017 remained 64, exceeding 2016's 24. Many of the world’s leading brands, including Starhub, GE, Airbus, and Coca Cola Vietnam, have co-operated with FPT to satisfy their digital transformation demands. Currently, the number of these partners increased by 104.

FPT even has ambitions to become one of the world’s leading companies specialised in digital transformation and become a key partner of many the world's leading IT.

FPT also set the target of increasing its turnover by 50-70 per cent per annum from digital transformation segment, in order to preserve the growth rate of 25-35 per cent during the next five years. FPT also expects that digital transformation will make up 50 per cent of the group’s turnover.

Technology will be FPT’s main engine of growth in 2018 with an anticipated turnover and profit of VND12.149 trillion ($535.2 million) and VND1.46 trillion ($64.3 million), up 10 and 29 per cent year-on-year, accounting for 55 per cent of the group’s turnover and 42 per cent of its profit.

The telecom segment is expected to reach VND8.66 trillion ($381.5 million) of turnover and VND1.394 trillion ($61.4 million) of profit, up 13 and 16 per cent year-on-year, respectively.

After FPT Trading and FPT Retail become FPT Group’s venture companies, the group’s turnover in 2018 is predicted to hit only VND21.9 trillion ($964.7 million) (after excluding the turnover of FPT Trading and FPT Retail), lower than last year's VND43.8 trillion ($1.92 billion).

However, the net profit is expected to reach VND3.484 trillion ($153.4 million), up 18 per cent year-on-year.

By Ha Nguyen

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