FPT unveils strategic vision embracing AI & green transformation

FPT Corporation, at its 2024 Annual General Meeting, disclosed its strategic vision for the 2024-2026 period, setting its sights firmly on five key areas: AI, Automotive, Semiconductor, Digital Transformation, and Green Transformation. The strategy aims to use these strategic areas to consolidate Vietnam's standing as a global hub for business and innovation.

Dr Truong Gia Binh, FPT Chairman, expressed that Artificial Intelligence (AI) remains a central part of FPT's development strategy to reach at least half of the Vietnamese population and 300 million worldwide. Dr Binh said that FPT is "committed to expanding its AI ecosystem, continuing strategic partnerships with the world's leading names, and embedding AI into all of its solutions and services", adding that FPT's Generative AI and Visual AI solutions will also be tailored to cater to specific industry needs.

In the automotive sector, the company aims to grow intelligent vehicle solutions following the launch of FPT Automotive in 2023. It plans a transition from software outsourcing to technical design for software-defined vehicles, targeting a 50% annual growth rate and a revenue of USD $1 billion by 2030.

FPT aspires to supply semiconductors globally and boost Vietnam's prominence in this sector with a dual approach to the semiconductor industry. Dr Binh highlighted the company's ambition to transform Vietnam into a semiconductor powerhouse, similar to its past success with software export. He said that FPT plans to "establish joint ventures for IC design and testing and partner with local authorities to attract foreign investment in the semiconductor sector."

From 2024 to 2026, FPT plans to expedite digital transformation and promote green transformation through smart initiatives, further establishing its reputation as a prominent partner for global businesses in these areas. Mergers and Acquisitions (M&A) will continue to be a strategic priority for FPT, particularly in bolstering the automotive sector. Dr Binh disclosed the company's interest in acquiring companies that manufacture and design cars, targeting the US, Japan, South Korea, Singapore, and Europe for its M&A activities.

In 2023, FPT exceeded its targets, recording a revenue rise of 19.6% and a 20.1% increase in pre-tax profit compared to 2022. This year also marked a milestone for the company, with its subsidiary FPT Software generating IT service revenue exceeding USD $1 billion for the global market. FPT has set a target for a 17.5% revenue growth and an 18.2% profit increase before tax for 2024.

Pham Minh Tuan, EVP of FPT and CEO of FPT Software, proclaimed, "Starting from 2024, The Corporation is committed to deep investment, focussing on the development of high-value technologies like AI and Data, and ventures in rapidly growing sectors such as Automotive, Healthcare, Banking, Insurance, and Energy. We are determined to elevate our standards and surpass expectations to become a world-class company."

FPT Corporation's strategic vision for 2024-2026 underscores its ambitious plans to position Vietnam as a global hub for innovation and business across key sectors like AI, Automotive, Semiconductor, Digital Transformation, and Green Transformation. With a commitment to expanding its AI ecosystem, advancing intelligent vehicle solutions, and strengthening its presence in semiconductors, FPT aims to drive growth and foster technological advancements. The company's focus on digital transformation and green initiatives further highlights its dedication to sustainability and adaptability in an ever-evolving market landscape.