2024, FPT sets a growth target of 17.5% in revenue and 18.2% in profit


Hanoi, April 10, 2023: FPT convened the 2024 Annual General Meeting of Shareholders (AGM) in online and in-person formats. The 2024 AGM approved several significant agenda items, including the strategic direction for 2024 - 2026, the business plans for 2024, the allocation of profits from 2023, and the dividend distribution policy for 2024.

In 2024, FPT aims for revenue growth of 17.5% and a pre-tax profit increase of 18.2%. Regarding the dividend policy for profits earned in 2023, FPT plans to distribute 20% of dividends in cash. Of this, 10% was already paid in 2023, and the remaining 10% is scheduled for payment in the second quarter of 2024. Additionally, dividends in shares will be issued at a rate of 15%, with shareholders receiving three new shares for every 20 shares owned (ratio 20:3). FPT intends to maintain a cash dividend payout ratio of 20% in 2024.

FPT intends to maintain a cash dividend payout ratio of 20% in 2024

FPT intends to maintain a cash dividend payout ratio of 20% in 2024

FPT remains resolutely committed to implementing the DC5 Strategy

With the mission of fostering happiness for individuals, success for organizations, and enhanced prosperity for the nation, during the 2024 - 2026 period, DC5 (Digital Conglomerate 5) will concentrate on the concurrent development of products, services, and solutions in two principal directions:

  • Creating Smart solutions tailored for organizations and enterprises while offering Convenient services for individuals through AI and Data platforms;
  • Enhancing ecosystem expansion and collaboration with partners within and outside the Corporation to deliver comprehensive and optimized digital experiences for individuals, organizations, and businesses. Furthermore, this initiative aims to broaden FPT's customer base and seize new business opportunities.

FPT ramps up investment in AI, Automotive, Microchips, and Cloud

The market value of Generative AI (GenAI) is expected to rise from 67 billion USD in 2023 to 1,304 billion USD in 2032, as reported by Bloomberg Intelligence. The global automotive software market is suggested to burgeon to a value of 116.6 billion USD by 2032. As per Gartner's report, the global semiconductor market is projected to achieve a scale of approximately 1,400 billion USD by 2029. Gartner also forecasts that global spending on Cloud services will increase by 20.4% in 2024, nearly three times the overall growth rate of the entire IT market, reaching 678.8 billion USD.

Given the promising outlook for the market, from 2024 to 2026, FPT will direct its attention toward the following pivotal initiatives:

  • Artificial Intelligence: assumes a central role in FPT's development strategy, aiming to cater to a minimum of 50% of Vietnamese and 300 million global citizens. The Corporation is dedicated to expanding the AI ecosystem. Presently, the FPT.AI platform boasts over 20 products and solutions, adding 2-3 new offerings annually. The generative AI (such as AI Mentor and ChatbotGPT) and Visual AI (like LandingLens) solutions will be tailored to specific industry orientations to provide notable advantages to the Made-by-FPT product suite and FPT's customers.
  • Strengthening expertise in the Automotive sector: FPT is committed to investing in the development of intelligent solutions, offering comprehensive automotive services to achieve a 50% annual growth rate and attain a revenue milestone of 1 billion USD by 2030. Presently, FPT boasts a workforce of over 4,000 engineers and specialists specializing in automotive software and maintains a robust network comprising more than 150 distinguished clientele, including globally renowned brands such as Honda, Hyundai, Volvo, VinFast, Ford, Yazaki, LG, Panasonic, and NXP.
  • Expanding its footprint in the semiconductor industry: FPT persistently pursues collaboration opportunities to supply chips to global customers while concurrently fostering human resource development within the industry. In 2022, FPT introduced the inaugural generation of microchip products tailored for Internet of Things applications in the medical domain. The Corporation has secured a contract to provide 70 million chips to clients in Taiwan, Japan, and Korea by 2025. In resource training, 2024, FPT undertook the curriculum transfer of a semiconductor technology training program from the UK, which will be implemented at the BTEC FPT (an international joint training college under the FPT Polytechnic system). Moreover, in March 2024, FPT inaugurated an Integrated Circuit (IC) Design training program at the FPT Jetking Training System in collaboration with India.
  • Within the Cloud technology domain, FPT is dedicated to advancing its super-converged cloud platform while broadening the scope of its product ecosystem. This expansion aims to surpass 100 services, concurrently prioritizing the development of the PaaS service group and pioneering solutions like high-performance computing, AI infrastructure, and VDI. Furthermore, the Corporation anticipates extending its Cloud service offerings to pivotal markets across the Asia Pacific region.

Chairman of FPT: The new pinnacle of technology

Chairman of FPT: The new pinnacle of technology

FPT Chairman expressed, "25 years ago, FPT harbored a significant and seemingly insurmountable aspiration - exporting software. Many times, we found ourselves at an impasse. But today, FPT stands as a global powerhouse, having achieved the milestone of 1 billion USD in IT services and contributing to Vietnam's emergence as the world's second-largest player in software exports. After 25 years, history once again smiles upon Vietnam. The world now looks to us to produce chips, drawn by our political and economic stability, strategic positioning in the global supply chain, and a rich pool of engineering and technological talent. We cannot afford to overlook this opportunity to ascend toward becoming an advanced nation. FPT is committed to engaging in the global semiconductor ecosystem, contributing to chip design and training skilled human resources."

Sustaining its growth in 2024

In 2024, FPT aims for revenue growth of 17.5% and a pre-tax profit increase of 18.2%.

The Technology sector aims for revenue and pre-tax profit growth exceeding 20%. FPT remains committed to significant investments in fundamental technologies like AI and semiconductors. Additionally, it will explore opportunities in high-growth potential sectors, including automotive software, healthcare, finance, banking, and green energy. Simultaneously, there will be a transition from a project-oriented business model to a platform-based approach.

In the Telecommunications sector, as household bandwidth consumption trends upwards, FPT is actively trialing cutting-edge technologies and ultra-fast speeds to cater to customers utilizing next-generation internet and television services. Concurrently, the Corporation invests in distinctive information, entertainment, and educational content tailored to evolving preferences and personalized for each family member. Furthermore, FPT remains committed to expanding its data center infrastructure nationwide to keep up with the evolving landscape of AI and big data.

In the Education sector, the Corporation persists in broadening the reach of its inter-level high school system, aiming to provide a "happy school" experience. Simultaneously, the expansion of vocational training and career guidance for high school students (9+) will be actively promoted across most localities. This initiative aims to address the diverse needs of learners and foster vocational competitiveness aligned with the socio-economic development strategies of each province. Additionally, FPT will collaborate with partner universities and businesses specializing in semiconductors from Taiwan, Korea, and the US, implementing innovative and accelerated learning techniques to train human resources in this domain.

CEO Nguyen Van Khoa: Achieving 1 billion USD in foreign revenue significantly enhances FPT's ability to attract top talent.

CEO Nguyen Van Khoa: Achieving 1 billion USD in foreign revenue significantly enhances FPT's ability to attract top talent.

FPT's CEO, Mr.Nguyen Van Khoa, affirmed, "FPT remains committed to pursuing double-digit revenue and profit growth targets. Concurrently, the Corporation will prioritize investments in core technologies such as AI, Automotive, Cloud, and Big Data to foster sustainable long-term growth momentum."

In 2023, FPT recorded a revenue of 52,618 billion VND and a pre-tax profit of 9,203 billion VND, marking respective increases of 19.6% and 20.1% compared to the previous year. These figures exceeded the targets set at the 2023 AGM, with revenue reaching 101% of the plan and profits reaching 102%. Furthermore, the profit after tax for shareholders of the parent company surged to 6,470 billion VND, up 21.8%. The Earnings Per Share (EPS) reached 4,666 VND/share, rising 21.3% compared to the previous year.

FPT constantly strives to build a world-class, joyful workplace culture

FPT constantly strives to build a world-class, joyful workplace culture

In 2023, FPT witnessed a historic milestone as revenue from IT services for foreign markets surpassed the 1 billion USD mark, reaching 24,288 billion VND, marking a 28.4% increase. Transitioning from its project implementation model of getting job assignments, FPT has undergone a significant "transformation," now serving as a consultant in executing digital transformation projects leveraging cutting-edge technology, with project scales reaching dozens, even hundreds of millions of dollars. This evolution has marked FPT's official entry into the league of global billion-dollar IT service providers. Digital transformation revenue from foreign markets surged to 10,425 billion VND, marking a remarkable 42% growth compared to the previous period and emphasizing pioneering technologies like Cloud, AI/Data Analytics, and others.

In tandem with its sales and profit expansion, FPT has been committed to enhancing its management capabilities to adhere to the highest sustainable development benchmarks. Additionally, the Corporation is dedicated to fostering a contented and equitable work environment while taking the lead in Vietnam's efforts to mitigate greenhouse gas emissions. In its 2023 annual report, FPT unveiled its pledge to attain Net Zero emissions by 2040, alongside a commitment to positively influence the living, working, and learning environments of over 1 million workers by 2035. Moreover, the Corporation implemented measures to track and disclose greenhouse gas emission indicators within Scope 1 and 2.