Official launching of FPT’s biggest IT project overseas

On the 23^rd of March, the Integrated VAT Administration System (IVAS) implemented by FPT Information System (FPT IS) for the National Board of Revenue, Bangladesh (NBR) was officially put into operation on schedule after 12 months of deployment. With a total value of 33.6 million USD, this has been the largest overseas IT project of FPT so far. The World Bank-funded project is also said to involve with complex technology elements, which requires to be implemented by a highly-qualified prime contractor with years of experience in finance industry. The launching ceremony was attended by Bangladeshi leaders of relevant ministries, Vietnamese Embassy in Bangladesh and over 700 guests.

IVAS offers an effective tool to Bangladeshi Government to facilitate the management of more than 500,000 VAT taxpayers (including enterprises, organizations and household businesses with sales of over 3 million Taka per year, equivalent to 38,000 USD) and supports business operation of 320 local tax authorities nationwide.

IVAS is the very first system in the world to apply SAP Multi channel Foundation solution for the taxation sector. As being one of the most advanced solutions in terms of web-based technology nowadays, it features full functions for taxpayers and is flexible in adjustment of user interface and business procedures. IVAS project provides Bangladeshi Government with three main modules, namely Tax registration, Tax declaration and Tax accounting and is divided into three phases of deployment. FPT is fully in charge of the provision for software solutions, infrastructure implementation and management services. With the official utilization of Tax registration module since March 23^rd, Bangladeshi taxpayers no longer have to apply for tax codes manually. Instead, they are now able to access and register for their tax codes online. The two remaining modules are expected to be completed and put into operation in 2017.

During its implementation in Bangladesh, FPT IS has faced up with various challenges due to objective reasons such as significant geographical distance, poor infrastructure conditions and culture and language differences. Not to mention, the difference in tax business of each country and the time pressure to apply high technologies in a short period of time as required by the customer also pose major difficulties to FPT IS. However, FPT IS experiences gained through the successful implementation of national financial systems, particularly the Bangladesh Integrated Income Tax Administration System (BITAX), have enabled them to fulfill their commitment to complete the project on schedule. “This demonstrates FPT IS capabilities in deploying national IT systems not only in Vietnam but also in nations with less developed conditions. The successful launching of IVAS also confirms the pioneering position of FPT when it comes to taking Vietnamese IT solutions and services out into the world.”,  FPT IS CEO Mr. Pham Minh Tuan stated.

Speaking at the ceremony, Bangladesh's Minister of Finance Mr, Abul Mal Abdul Muhit said:  the Integrated VAT Administration System was officially put into operation is a great achievement not only for the NBR, but also for Bangladesh.

According to the Vietnamese Ambassador in Bangladesh Mr. Dang Van Khoa, the on time operation of biggest IT system in Bangladesh undertaken by FPT not only enhances the prestige of Vietnam’s IT companies in local market, but also opens both countries to promising cooperation opportunities in the future.

IVAS, which is a component of the Digital Bangladesh Vision 2021 programme, is the biggest turnkey IT contract in the history of Bangladesh. The implementation of IVAS is expected to facilitate the management of indirect taxes from the registration and declaration, to collection, inspection and supervision, and also offer useful tools to support reporting, analysis and decision making for the NBR. In addition, with the execution of new VAT law in July 2017, the Government of Bangladesh also expects IVAS to assist its strategy to raise the VAT collection amount from 4.5 billion USD in 2014  (accounting for 3,7% GDP) to 8 billion USD by 2020 (accounting for 4,5% GDP).

In 2015, after an intensive bidding process, FPT IS has succeeded against five competitors from developed countries, including the United Kingdom, France, Canada, China and Luxembourg, to be chosen for this project.

After only 3 years of operating in Bangladeshi market, FPT IS had previously signed four major contracts with the total value of more than 60 million USD. FPT IS is currently the largest IT company in Bangladesh with 80 employees. In 2017, FPT IS plans to establish its representative office in Bangladesh.