FPT’s international business blooms in COVID aftermath
- 21 October, 2021 14:25
Truong Gia Binh (chairman, FPT)
Vietnamese IT services group FPT has seen sales surge in its major overseas markets, especially in the United States and Europe, due to high COVID-19 vaccination rates and a steady recovery in economic activity in those regions.
Indeed, FPT has revealed it recorded substantial orders over the first nine months of the year, including 16 projects worth more than US$5 million each, an increase of 167 per cent over the same period of the previous year.
Overall, the revenue from the company’s global IT services offering totalled VND 10.42 trillion, while profit before tax was VND 1.73 trillion, an increase of 18.6 per cent and 22.1 per cent, respectively, during the nine months ending 30 September.
In the domestic market, FPT’s IT services generated revenue of VND 3.88 trillion, up by 32.3 per cent, and pre-tax profit of VND 365 billion, up 92.7 per cent, year-on-year.
Across the entire group, and despite the disruptions caused by COVID-19, FPT recorded nearly VND 24.95 trillion in sales and VND 4.58 trillion in pre-tax profit in the first nine months of 2021, up by 17.9 per cent and 20 per cent, respectively, over the same period last year.
Both revenue and profit enjoyed positive growth, with the technology and telecommunications sectors, in particular, providing the primary impetus.
The technology sector, including domestic and international IT services, generated revenue of VND 14.29 trillion and pre-tax profit of VND 2.10 trillion, up by 22.1 per cent and 30.4 per cent, year-on-year, respectively. This is the group's primary business segment.
Revenue from digital transformation, meanwhile, reached VND 3.95 trillion in the nine-month period, up by 59.6 per cent, thanks to growth in key technologies like cloud computing, artificial intelligence (AI) and low code.
At the same time, the company’s telecommunications segment generated revenue of VND 9.23 trillion, an increase of 11 per cent, and pre-tax profit of VND 1.78 trillion, a 21.9 per cent increase over the same period last year.
Earlier this year, FPT revealed it was aiming to build out its digital business ecosystem following the launch of its digital transformation consulting subsidiary FPT Digital.
The company revealed the launch of the new business, the eighth member company of FPT Corporation, in late February, saying at the time that it could provide digital transformation roadmap consulting services for businesses while at the same time promoting new initiatives and innovative business models.
The move reflected FPT Corporation’s decision to shift its focus to the digital transformation market after two decades as a major player in the Southeast Asian IT services industry.
“As technologies bridge the gap in the market, new business models are putting pressure on traditional firms, forcing them to reinvent themselves or adapt to sustain," FPT chairman Truong Gia Binh said at the time.
“The launch of FPT Digital would enable us to assist our customers more comprehensively, helping them maximise operation efficiency and enhance end-user experiences.
“As an independent consulting company, FPT Digital would evaluate and propose the best products and services for our customers’ digital transformation journey,” he added.