Technology
The technology sector achieved revenue of 20,736 billion VND and PBT of 2,799 billion VND, up 23.4% and 24.3%, respectively, over the same period. Thanks to early investments in internal technology systems, human resources, and digital technology solutions, FPT anticipated the digital transformation needs of both businesses and the Government in 2021.
- 23.4%
- 24.3%
Foreign IT service segment
Despite facing the Covid-19 pandemic in Vietnam and many other countries in 2021, We successfully seized opportunities when the global economy recovered to drive the Company to high double-digit growth. We also effectively implemented large projects worth up to hundreds of millions of USD. It was all due to the initiative and adaptation to the circumstances and the flexible, speedy response to customer requirements. In 2022 and the coming years, with the "one-team" spirit, FPT Software will promote consulting capacity, packages of digital transformation services and solutions, and human resource development not only in Vietnam but also in other countries such as India, Philippines, Slovakia, Czech Republic, Canada, Costa Rica, Columbia and Japan... This would lay the foundation for us to become a strategic partner in the digital transformation journey of millions of global customers, soon realizing the goal of making it into the bracket of world-class billion-dollar companies.
Revenue and PBT of FPT’s foreign IT service segment reached 14,541 billion VND and 2,424 billion VND, respectively, up 21.2% and 23.0% over the same period. In particular, thanks to the reopening of economies and the increased investment in digital transformation, revenue from the US and the Asia Pacific (APAC) both achieved high growth rates at 52% and 27%, respectively. On the other hand, the Japanese and European markets grew somewhat slower with growth rates of 5% and 15%, respectively, due to the severe effects of the pandemic. In addition, the sharp decrease in the Yen exchange rate in 2021 also caused a reduction in revenue growth in the Japanese market. Nevertheless, in terms of Yen, the Japanese market’s revenue grew by over 11% when compared to 2020.
However, thanks to proactive measures to prevent exchange rate risks, the significant contribution of digital transformation revenue, and winning bids for large-scale and high-value projects, the segment’s profit margin still grew slightly from 16.4% in 2020 to 16.7%.
Enhancing digital transformation capacity and new technology solutions
With the increasing demand for digital transformation, digital transformation revenue based on new technologies reached a record of 5,522 billion VND, up 72% over the same period, contributing 38% of the revenue from the global IT service segment. In particular, Cloud services and solutions brought over USD 100 million in revenue, growing by 161%. Besides, income from other technologies such as AI, Big Data, and Low-code also increased by 204% and 142%, respectively, greatly contributing to the impressive business results of the digital transformation segment for foreign markets.
Digital transformation revenue growth
In order to meet the market demand for new technologies, FPT has continuously researched and developed digital technology application products, solutions, and services to complete the solution packages for global customers. In particular, akaBot and Ubot, the automated business process solutions integrating AI technology, were those that garnered most attention. akaBot was the top single product used by financial companies and banks to optimise the internal processing process, while Ubot was preferred by SMEs thanks to its simple 3-step process. Launched in March 2021, Ubot has now been trusted by more than 150 companies, proving its great potential.
Accelerate service deployment for “whales” and win bids for large-scale projects
“Whaling” strategy (that means taking care of customers on the Fortune Global 500 list) proved to be remarkably effective. Accordingly, the number of 1-million-USD customers increased to 128. Moreover, we have recorded customers bringing over 70 million USD in sales for the first time. It resulted from winning bids for major projects in the US in 2020. In the future, FPT will continue to seek out more “whales” to win big in more markets.
The Corporation focused on providing large-scale solution-and-service packages for all of our customers, helping us optimise resources and improve profit margins. In 2021, over-5-million-USD valued projects increased to 19 in total, equivalent to a growth rate of 111%. Notably, FPT also won the bid for the over-40-million-USD project for the Singapore Government, showing the vast development potential of this “whaling” strategy. In addition to promoting large-scale million-dollar projects, the number of medium-sized projects worth over 500,000 USD reached 257 projects in total, an increase of 33% YoY, proving the dynamic and diverse performance of the Technology sector.
Number of large-sized customers
| Data |
2020 |
2021 |
| Number of customers with > 20 million USD in sales account |
1 |
2 |
|
Number of customers with > 10 million USD in sales account
|
5 |
6 |
|
Number of customers with > 05 million USD in sales account
|
14 |
16 |
|
Number of customers with > 01 million USD in sales account
|
118 |
128 |
Accelerate human resource development and expand investment in new markets
Newly-contracted revenue that reached 15,541 billion VND and up 19% YoY showed high demand from global customers. In order to meet the international project with increasing requirements and quality, FPT continuously promoted the recruitment of experts from many fields in 2021. As a result, the workforce of the global IT service segment reached over 18,000 people. Besides this, we also expanded activities by opening new branches in India and the Philippines or investing in strategic partners such as Intertec International – a company with over 20 years of experience in IT services in the Central American market. On top of this, the turnover rate of the segment increased slightly from 17.5% to 18.7% due to the bounce-back recovery of the IT labour market, but still remains at a low level.
|
Criteria
|
2020 |
2021 |
+/- |
|
Average total personnel (people)
|
16,132 |
18,214 |
12.9% |
|
Average total production personnel (people)
|
14,821 |
16,787 |
13.2% |
|
Revenue/person (million VND)
|
742 |
807 |
8.6% |
Revenue/person accelerated to 8.6% due to the high growth rate of personnel to keep up with the great demand of international customers. FPT also boosted training activities while recruiting more leading technology experts in Artificial Intelligence, Blockchain and Cloud Computing… to increase customer service capacity.
Domestic IT service segment
New-contract revenue grew strongly, especially in the corporate segment, showing high market demand. We focused on investing in developing key "tools" that are specialised outstanding and classy solutions and products, helping to solve customers' business and operation issues optimally. In 2022, the Company continues to strive towards becoming the No. 1 technology partner, accompanying businesses and organisations in the country with 27% profit growth.
2021 marked the remarkable growth of the domestic IT service sector. Revenue and PBT reached 6,196 billion VND and 377 billion VND, respectively, up 29.0% and 33.9% YoY. In addition, new-deal revenue reached 6,926 billion VND, an increase of 19.9%. It showed the greater digital transformation demand in the domestic market, opening a new wave of great opportunities to increase our capacity for development.
Speed up exploiting the needs of corporate digital transformation
The Covid-19 pandemic has accelerated the digital transformation journey in businesses of all fields. Technology is considered a vital “vaccine” for enterprises to overcome internal and external difficulties. The corporate IT service sector prospered with a 45.9% growth in new-contract revenue.
As a leading IT service provider in Vietnam, we deeply understood and soon invested in comprehensive technology solutions for key industries in Vietnam such as Banking, Construction – Real estate and Manufacturing… Moreover, with extensive implementation experience, FPT has accompanied in solving business and operating problems of enterprises with a more optimal deployment time.
Last year, we did set exceptional records for the Construction – Real estate – a specific market area with the most complex requirements. For example, the ERP system for Coteccons went live within just 100 days – setting a new standard in ERP implementation for the construction and real estate industry. In addition, we also successfully launched the 28-month comprehensive digital transformation project with an enormous deployment scale for Dat Xanh Group. Besides this, leading customers continued to trust us in our digital transformation mission, such as An Gia Group or Filmore. These initial successes helped FPT affirm its consultation and implementation capacities in corporate governance systems for the construction and real estate industry. Those have laid the foundation for FPT to develop specialised solutions for other domains and win big clients in 2022.
Promote access to government and local customers
In 2020, the Prime Minister approved the “National Digital Transformation Program to 2025, with a vision to 2030” aiming to build our nation to become a digital country that is pioneering new technologies and developing digital governance, digital economy, and a digital society. Accordingly, ministries, agencies, and localities were rapidly starting digital transformation programs, projects, and plans in 2021.
Realising a great opportunity from public resources, FPT Corporation has stepped up its approach to ministerial and local government agencies to propose consulting and implement significant projects.
Specifically, we expanded our cooperation with key government agencies that had far-reaching impacts on social development and people’s lives, such as social security. In addition, FPT aims to become a reliable companion to help localities in comprehensive digital transformation, laying the foundation for socio-economic development with two main spearheads: digital governance and smart city. In 2021, FPTlaunched 05 more entities, reaching 40 localities, implementing projects and training to raise digital transformation awareness for 14 provinces and cities nationwide.
FPT Smart Cloud: A promising new business segment
In 2021, for the first time, FPT had separated the Cloud Computing and Artificial Intelligence business in the domestic market into a separate segment, operating independently and located in a new investment area. FPT Smart Cloud yielded impressive results when it launched 37 Cloud Computing products and 04 AI solutions, bringing in 12 million USD in registered revenue and 127 billion VND in actual revenue. In particular, the “F0 support call center” made 80 million calls to support people infected with Covid-19, reducing pressure on the national health system.