Vietnam’s leading technology group FPT Corporation maintained its growth over the past year, and even strengthened its position as a leading wing in the nation’s digital transformation. FPT CEO Nguyen Van Khoa talked to VIR’s Bich Thuy about its business strategies in 2021 amid the pandemic complexities.
While COVID-19 has made serious impacts on businesses in 2020, it has also prompted businesses to accelerate digital transformation, thus increasing the demand for IT applications. In this context, how did FPT fare during this difficult time?
|FPT CEO Nguyen Van Khoa |
It was a challenging year and also one that witnessed important moves at FPT thanks to the wave of digital transformation that took place in many sectors and businesses in Vietnam and beyond. In general, FPT reported stable growth during the year when business activities were smoothly run, and administration proved effective thanks to flexibility and quick adaption to COVID-19. We were determined to activate a wartime-like operating mode, changing the work and marketing approach with customers and partners while focusing resources on high-profitable business segments, including digital transformation. As a result, the group maintained over 10 per cent on-year rise in profit in the first 11 months of 2020, and an on-year increase of 34 per cent in digital transformation revenues.
During 2020, FPT’s position on the global IT map also strengthened after the group became strategic prioritised partners to carry out digital transformation contracts worth hundreds of millions of US dollars – for example, in the $200-million contract with Malaysia’s National Petroleum Ltd., and the $150 million contract with a leading automobile group in the US. Moreover, FPT-made digital platforms and products such as akaBot, akaChain, Cloud MSP, and others are recognised globally by prestigious international organisations such as Gartner and RPA Hack. Notably, akaBot was honoured in the Top 6 Robot Process Automation platforms globally, while FPT.AI won an AI contest in Japan. Last year FPT was also the only Vietnamese business to win a Stevie Awards, which recognise accomplishments and contributions of companies and business people worldwide, for its corporate responses and great contributions to support the local community and government in fight the pandemic.
At home, FPT is reaffirming its leading role in national digital transformation activities by becoming a partner of leading firms in the fields of banking and finance, manufacturing, property, telecommunications, agriculture, and others while supporting cities and provinces in their digital transformation journeys.
Amid the long haul of the pandemic, what are the key priorities in FPT’s domestic performance in 2021 to maintain growth?
FPT plans to keep moving as part of the country’s national digital transformation path, thus bringing about practical values for the government, businesses, and individuals.
To achieve this goal, FPT will focus on high-quality human resource development programmes and team rejuvenation. Also, we will continue to invest in core technologies of Industry 4.0 such as AI, big data, and cloud as well as develop the ecosystem of FPT-created platforms on par with the world’s best.
In addition, FPT will concentrate on creating digital platforms in key national fields such as healthcare, education, banking and finance, agriculture, logistics, energy, natural resources and environment, and industrial production.
FPT has made great achievements in the global market, but how will the current health crisis affect the group’s international expansion plans in 2021?
In the upcoming years, FPT aims to be named in the Top 50 digital transformation service providers worldwide. In 2020, we opened just four new branches in India, Australia, Canada, and the Middle East. This year, we will strongly boost our presence globally.
For FPT and the business community in general, the challenge comes from the unpredictability of COVID-19. Despite this, the IT market is forecast to grow 4.2 per cent in 2021, according to the International Data Corporation. This momentum is projected to continue in upcoming years with compound annual growth rate (CAGR) of 5 per cent until 2024. Moreover, investment in digital transformation among firms globally should continue to increase with CAGR of 15.5 per cent from 2020 to 2023, and is forecast to reach $6.8 trillion when businesses tap into their strategies and investments with support of technology to develop into future digital companies.
With the huge growth potential, more opportunities are opening for FPT and other technology firms, and we are already preparing for a new growth cycle.