Elevating its Prestige, FPT is Poised for Global Expansion Toward the Next Billion-Dollar Milestones

On January 11, 2024, FPT unveiled its ambitious long-term objective within its globalization strategy, aiming to "ascend to a superior echelon among billion-dollar IT service enterprises." The target is to achieve 5 billion USD in IT service revenue from foreign markets by 2030.

Elevating its prestige, FPT is poised for global expansion toward the following billion-dollar milestones.

From obscurity to global prominence

Over two decades ago, in 1998, FPT initiated its globalization strategy, offering IT services to international markets with the vision of disseminating Vietnamese technology and intellect worldwide.

FPT initially navigated its way abroad, employing international industry standards such as ISO or CMM. It established an office in Bangalore (India) in 1999, followed by Silicon Valley (USA) in 2000, but encountered setbacks. Its first customer contributed only modest sales in the thousands of dollars. Even upon reaching a revenue scale of 1 million USD, FPT grappled with a crucial decision on whether to persist in its pursuit of exporting software. The turning point for FPT came with its successful foray into one of the most challenging markets - Japan - starting in 2005.

From its humble beginnings with a mere 17 employees, FPT's workforce in IT services for foreign markets has burgeoned to 30,000 individuals, hailing from 70 different nationalities. Evolving beyond Vietnam, FPT has established a global footprint in 30 countries, extending its reach into highly developed markets such as the United States, Japan, Singapore, and Europe. What started as a company with no customers has transformed into a trusted partner for nearly 100 companies listed in the Fortune Global 500. Shifting from project implementation in the form of work assignments, FPT has evolved into a consulting powerhouse, leading the charge in implementing digital transformation projects based on cutting-edge technology, often at a scale of tens or even hundreds of millions of dollars. Notably, FPT has ascended to the upper echelons of the IT services industry, joining the ranks of billion-dollar enterprises on the world stage.

Mr. Truong Gia Binh, Chairman of FPT, expressed, "In the past, FPT had to seek out its customers, but now, numerous major clients and partners are actively reaching out to Vietnam and FPT. The world is recognizing the value of Vietnam. Vietnam is emerging as a new global destination, securing the second position worldwide in software, just behind India."

Mr. Truong Gia Binh, Chairman of FPT: "Vietnam is emerging as a new global destination, securing the second position worldwide in software, just behind India."

Affirming the "world-class" standards

"Leading ahead," FPT is dedicated to advancing its position by researching the latest technologies and making substantial strides towards higher tiers in the technology value chain. Almost 50% of the total revenue from IT services for foreign markets is derived from digital transformation services. Cloud technology constitutes 40% of digital transformation service revenue, while other technologies such as AI and data analysis contribute 12%, and RPA & Lowcode account for 10%. FPT's prowess in cutting-edge technology domains serves as a strategic advantage, positioning the Corporation competitively against counterparts in the industry from India and China. This advantage enables FPT to secure substantial contracts and customers, handle hundreds of millions of USD turnovers, and be the main contractor in large-scale projects.

In 2023, FPT achieved a significant milestone by securing a customer with a sales scale exceeding 200 million USD for the first time. This US-based customer was the sole global provider of a comprehensive suite of solutions tailored for automotive distributors, encompassing Inventory, Marketing, Sales, Aftersales, and Operations. Triumphing over 100 international competitors, FPT became the primary partner, offering consultancy services and comprehensive solutions. This encompassed transforming business operating platforms and digitizing business processes to enhance operational efficiency. Moreover, FPT's solutions helped boost retail sales, enabling customers to sell more than 5 million vehicles annually in the US while optimizing costs. According to the leadership of the world's largest auto wholesale platform provider, the partner was chosen due to its substantial scale and the team of talented and dedicated professionals for long-term collaboration to meet their specific needs and drive their business forward. And FPT fulfilled those criteria.

In Malaysia, FPT has surpassed numerous formidable competitors, including Accenture, IBM, and Tech Mahindra, to secure a position among the Top 3 Main Contractors for implementing digital transformation projects. FPT has been the exclusive service provider on the Microsoft platform for Malaysia's leading oil and gas company for more than 15 years. This global enterprise, ranked among the world's largest, has conferred upon FPT the designation of an "Excellent Delivery Vendor." Furthermore, Malaysia's Minister of Communications and Digital Economy has acknowledged FPT as a significant contributor to promoting digital transformation, not only for the corporation above but also for the broader context of Malaysia.

"Leading ahead," FPT is dedicated to advancing its position by researching the latest technologies and making substantial strides towards higher tiers in the technology value chain.

Over 25 years, FPT has evolved from creating "small applications" to implementing "core services" for customers' IT systems. In 2023, FPT achieved recognition as one of SAP's Regional Strategic Service Partners (RSSP) in Asia-Pacific and Japan. It was a prestigious list featuring only three companies in Southeast Asia, with FPT being the sole representative from Vietnam. Regional partners must meet or surpass SAP's criteria regarding the scope of activities, capacity, and a shared commitment to sustainable development to qualify for this program.

Presently, FPT boasts a team of 1,300 consultants holding over 900 internationally recognized SAP certificates. Besides, it is a trusted ERP consulting and implementation partner for numerous global corporations. Notably, FPT collaborates strategically with a leading Japanese high-tech company, deploying the SAP Public Cloud system across 15 countries, capturing 70% of the system's global market share in the measurement of Critical Dimension Scanning Electron Microscopes (CD-SEMs). The project has garnered recognition and resonance from Japan's SAP Business Association (JSUG). Furthermore, it is the most successful global deployment project for Japanese customers in SAP's history. In Korea, FPT is actively involved in various SAP capacities, encompassing technical consulting, system architecture, and technology implementation. The Corporation is currently implementing SAP for one of the largest corporations in Korea, a member of the Top 500 leading enterprises globally that holds the top position in the global consumer electronics market.

With over two decades of experience in the global market, FPT has cultivated in-depth expertise in specialized fields that exhibit significant potential for future development and secured large-scale contracts.

During the first nine months of 2023, FPT witnessed a remarkable 66% increase in potential revenue from large contracts exceeding 5 million USD, indicative of a strategic shift in FPT's value chain towards contracts worth tens and hundreds of millions of USD. The Corporation has also secured substantial contracts of hundreds of millions of dollars with prominent companies in various sectors such as energy, oil and gas, and automotive technology. FPT has strategically built specialized capacities in automotive, aviation, finance, banking, and healthcare.

Leveraging over a decade of experience in the automotive software technology industry, FPT has developed substantial capacity in this field with a dedicated team comprising over 4,000 engineers and experts. It has established a robust network of more than 150 customers, featuring renowned global brands such as Honda, Hyundai, Volvo, VinFast, Ford, Yazaki, LG, Panasonic, and NXP. The Corporation stands among major contenders, positioned alongside famous names like Infosys, Tata Technologies, Cognizant, and NTT DATA, according to Everest Group's recent announcement on ACES (Automated, Connected, Electric, and Shared Vehicles) for 26 global automotive software suppliers. As of December 2023, FPT Automotive has been officially inaugurated in the US to capture a significant share of the automotive software market valued at hundreds of billions of dollars. With a growth rate of approximately 40% in recent years, this sector has played a pivotal role in contributing to FPT's achievement of reaching one billion USD in IT service revenue for foreign markets in 2023.

In the aviation sector, FPT once considered it beyond imagination to be among the top IT service providers for the world's leading aircraft manufacturers. Previously, it took five years for FPT to convince a leading aircraft manufacturing company to collaborate on a digital transformation project. Now, both of the world's largest corporations in this field are valued customers of FPT, with every flight on any airline featuring an FPT code line.

Mr. Nguyen Van Khoa, CEO of FPT, stated, "FPT has ambitious goals and dreams. People may not believe it, but we are determined to conquer them all. One of these aspirations is achieving 1 billion USD in IT service revenue from foreign markets. With the market potential and our accomplishments, FPT is aspiring to have one million digital transformation professionals. We will persist in our focus on key technology fields such as AI, semiconductors, and automotive technology, aiming for the next billions of dollars in one industry, one market, and one significant contract."

Mr. Nguyen Van Khoa, CEO of FPT, stated, "FPT has ambitious goals and dreams. People may not believe it, but we are determined to conquer them all."

Ms. Chu Thi Thanh Ha, Chairperson of FPT Software, said, "The essence of world-class companies lies in the caliber of their people. FPT Software has consistently adhered to fundamental principles in building its team. Firstly, the company strongly emphasizes collaborative problem-solving, uniting the strengths of its internal team with those of customers and partners in the spirit of One Team. Additionally, there is a commitment to fostering a culture of continuous learning, with each FPT Software team member acquiring a new international certificate annually to deepen their understanding and better serve customers. Furthermore, FPT Software invests significantly in creating a positive and joyful environment, providing employees with personal development opportunities. We organize various events and implement policies that support the well-being of employees, their families, and relatives, fostering cohesion and ensuring sustainable development."

Ms. Chu Thi Thanh Ha, Chairperson of FPT Software, said, "The essence of world-class companies lies in the caliber of their people."

Mr. Pham Minh Tuan, CEO of FPT Software, said: "In its quest to achieve world-class status, FPT Software stands prepared to stand alongside its customers and partners in large-scale "big deals" globally reaching into the hundreds of millions of dollars. The company is unwavering in its commitment to cultivating high-quality technology experts and making substantial investments in complex, high-growth potential sectors, including automotive software, healthcare, banking and finance, and energy. Simultaneously, FPT Software is dedicated to integrating AI into all its services and solutions. This strategic move aims to enhance labor productivity, increase flexibility, improve quality, and reduce response times for customers worldwide.

Mr. Pham Minh Tuan, CEO of FPT Software: "In its quest to achieve world-class status, FPT Software stands prepared to stand alongside its customers and partners in large-scale "big deals" globally reaching into the hundreds of millions of dollars.

Remarkable milestones in FPT's journey to join the league of billion-dollar global IT service businesses.

Attracting talent on a global scale ensures access to the best resources both in terms of quantity and quality, particularly for projects with a scale reaching into the hundreds of millions of dollars. FPT's workforce's growth in IT services for foreign markets has remarkably increased more than 1,700 times over two decades.

• 1998: Initiated its globalization strategy with 17 employees.
• December 2016: reached 10,000 employees.
• September 2021: reached 20,000 employees.
• January 2024:  Further growth saw the team reach 30,000 employees, representing more than 70 nationalities, operating in 30 countries worldwide.

FPT has expanded and strengthened its partnerships with some of the world's most renowned companies, including SAP, Microsoft, AWS, Salesforce, and Adobe, as well as its participation in the AI Alliance initiated by IBM and Meta. These collaborations have given the Corporation a distinct competitive advantage in large-scale digital transformation projects. Based on this strategic direction, FPT can compete effectively with strong competitors from India, Europe, and the US, securing contracts worth tens or hundreds of millions of dollars in the energy, automotive technology, and oil and gas sectors.

Entering the realm of billion-dollar IT service businesses globally by reaching its first significant milestone of attaining 1 billion USD in IT service revenue for foreign markets.

• 2002: First 1 million USD in revenue.
• 2006: First 10 million USD in revenue.
• 2013: First 100 million USD in revenue.
• 2021: First 500 million USD in revenue.
• 2023: First 1 billion USD, entering the world-class playground of billion-dollar IT service businesses.
• 2030: Target of 5 billion USD - Enhance its position among the global billion-dollar IT service businesses.

Worldwide outstanding prestige:

• Top 300 leading companies in Asia (Nikkei Asia).
• Top 8 IoT service providers in the Asia Pacific region.
• Top 40 major technology service companies in Singapore.
• Top 70 Best Large Workplaces in Asia, alongside world giants such as Accenture, HP, Cisco... evaluated by Great Place to Work.
• TOP 100 best places to work in Japan, Singapore, and America.