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FPT is a large information technology service provider in Vietnam and aims to become the world's leading comprehensive digital transformation service provider.. FPT's services and soluti

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMIC HO CHI MINH CITY

I ABOUT FPT JOINT STOCK COMPANY

FPT Joint Stock Company (Hose: FPT) was established on September 13, 1988, with its head office at 17 Duy Tan, Dich Vong Hau Ward, Cau Giay District, City Hanoi Vietnam

FPT is a large information technology service provider in Vietnam and aims to become the world's leading comprehensive digital transformation service provider FPT's business activities focus on three core business blocks:

Technology, Telecommunications and Education

Business collect the array terrible business by FPT

Công nghệ

mw Viéén thong Giáo dục 54.90%

Figure 1.1 Revenue from business segments of FPT

In which, Technology segment accounts for 56% of total revenue with more than 18,000 employees operating in 48 offices in 26 countries FPT is an important strategic consulting partner for many corporations and organizations in the world

as well as in Vietnam such as Airbus, Amazon, Byer, Vietcombank, TPbank, Vietnam Airline, Vinamilk FPT's services and solutions in the field This includes digital transformation consulting; digital transformation solutions and services based on technology such as Al, IoT, Cloud ; solutions based on technology platforms such as SAP, Oracle, Microsoft

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In the Telecommunications segment, accounting for 39% of total revenue with

220 transaction offices nationwide as well as 13 provinces in Cambodia and Myanmar, covering over 59/63 provinces and cities, ranked in the top 3 Internet service providers in Vietnam In the telecommunications segment, it includes services such as FPT television service including television and entertainment services on the Internet and mobile phones; telecommunications services include Internet services, data centers, inter-provincial and international connections; online advertising ceramic digital content service, eClick intelligent advertising system

FPT is a strategic consulting partner / important partner in technology / digital transformation of leading corporations and organizations in the world and in Vietnam in many fields: Airbus, Amazon Web Services, Bayer, Hitachi , IBM, Microsoft, Oracle, Panasonic, RWE, Schaeder, SCSK, Siemens, Toppan, BIDV, Cenland, Dien Quang, Motivation, EVN, EON Vietnam, Habeco, Hung Thinh,

MB, Medlatec, Minh Phu, MobiFone, Saporo, Sunhouse, Thien Long, TPbank, Truong Thanh, Vietcombank, Vietnam Airlines, Vinamilk

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Development strategy for the period of 2021-2023, FPT focuses on profitability, productivity and innovation towards the long-term goal of becoming a digital enterprise, ranking in the top 50 leading companies in the world in terms of service provision comprehensive digital transformation solution by 2030 And to achieve this goal, FPT builds balanced and comprehensive action programs in all

3 aspects: business, technology and people In the target plan for 2021, FPT aims

to grow revenue and profit at 16% and 18%, of which focusing on 2 main

segments: Technology and Education, and the Telecommunications segment at high growth rates stability

As of December 31, 2020, FPT owned 7 subsidiaries and 5 associated

companies

FPT's vision and mission: "FPT aspires to become a new and powerful

organization with creative labor efforts in science, engineering and technology, satisfying customers, and contributing to national prosperity , giving each of its members the best conditions to develop their talents and a full material and spiritual life.”

Core values at FPT include: respect, innovation, comradeship, justice, exemplary, discerning

II Quantifying RISK AT FPT CORPORATION

1 Evaluation of FPT's business results for the period 2015-2020

1.1 General assessment

2020 is an unprecedented "golden test" year in world history with the raging of the Covid-19 pandemic leading to a global socio-economic crisis of the century, claiming the lives of children people, business lives and workers' jobs However, in the face of this treversible historical challenge, FPT has steadfastly chosen to seize the CO in the NGUYEN, react quickly to all events, "everyone works equal to two", determined not to let even one worker loses his job

In general, FPT maintains its position as the most valuable technology brand in Vietnam in 2020 (estimated at nearly 218 million USD), with total consolidated revenue

reaching 29,830 billion VND and profit after tax reaching 4,424 billion VND , up 7.6% and 13.1% respectively compared to 2019 The high profit growth nearly doubled revenue growth due to continuous efforts in innovation and application of digital transformation technology to improve productivity labor and profit margins Although there were fluctuations in business indicators in the first half of the year, from the third quarter and especially in the fourth quarter, all three core business segments (Technology, Telecommunications and Education/Investment) witnessed growth in both revenue and profit over the same period last year

In the field of IT services for foreign markets , FPT spectacularly surpassed the revenue milestone of USD 500 million, with a certain growth rate of 8-9% in two key markets Japan and the US, and a breakthrough expansion rate 28% from the Asia Pacific region FPT has raised its position and contribution to the global value chain when surpassing many well-known competitors in international bidding, bringing in hundreds

of impressive deals, including 118 "mega" transactions -deal" with a scale of over | million USD, an increase of 23% compared to 2019 One more software production center in India (with a scale of 1,000 employees), and | research and development center

in Costa Rica were opened developed to serve the immediate needs of customers in the

US and globally

The field of IT services for the domestic market witnessed the reversal of losses

to profit by the end of the year As a strategic consulting partner and implementing digital transformation, FPT has been an effective companion to help Vietnamese organizations and businesses overcome difficulties and make a breakthrough in the “new normal” Revenue from Digital Transformation Services in 2020 increased by 31%, reaching VND 3,219 billion, demonstrating the outstanding trend of AI, Cloud, IoT, Lowcode

In 2021, FPT will continue to affirm its leading position in the National Digital Transformation, with the core strategy of "Data Driven & Customer Centric" - customer- centric, data-driven The digital experience of domestic and foreign customers will continue to be enhanced, based on the 3 tripods of digital transformation - “business

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transformation", "technology transformation", and especially "human transformation" "

2021 will continue to be a year of testing the courage of Vietnamese businesses, with unpredictable impacts of the Covid-19 pandemic and subsequent developments of the "new world order" On the one hand, the pandemic does not allow anyone, any organization to have a choice but to go online On the other hand, it creates an unprecedented great opportunity for brave warriors who dare to overcome limits and practices to break through and turn defeat into victory With FPT's daring qualities of

"thinking differently - doing differently", with the DNA of "pioneering by technology", with a team of leaders and experts who are passionate about creativity and ready to innovate to adapt, FPT sets out The goal will be to successfully complete the goals set for

2021, contributing to enhancing Vietnam's position on the global digital map

1.2 Overview of the IT industry

® World

Covid-19 has been creating significant impacts on the revenue and growth rate of the global IT sector Overall, the revenue and growth rate of the industry, although recording negative growth in 2020, the deflation rate is still lower than the decline of the global economy and many other industries such as aviation, tourism, and services According to the World Bank's report, the world economy recorded a negative growth rate of 4.3% in

2020 Under the impact of the pandemic, many industries are also in the negative growth trend such as negative retail of 5.7 %, aviation is negative 60.9% Meanwhile, according

to Gartner, starting from the fourth quarter of 2020, the world IT market has improved significantly compared to the third quarter (negative 5.4%), when Many businesses globally are gradually adapting to Covid-19, with a negative growth of 3.2% Total global

IT spending in 2020 is estimated at approximately $3.7 trillion Growth in global IT spending in the fourth quarter came from businesses increasing spending on digital transformation to adapt to the new normal, when social distancing took place in many cities and regions around the world world, in order to stay in business, meet the requirements of remote working, online learning and online shopping

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in the initial stage accounted for 83% and only 17% of projects in the replication and completion stage But in 2020, this ratio has changed significantly when up to 40% of projects are in the replication and completion stage, projects in the initialization stage only account for 60%

® Vietnam

Thanks to effective disease control policies, Vietnam has risen as a bright star on the world map on both fronts of Covid-19 prevention and economic development In 2020, Vietnam achieved GDP growth of 2.8%, which is on the list of economies with the best growth before the heavy impacts of Covid-19 In addition, with a young workforce, capable of quickly learning new technologies and competitive costs, Vietnam is becoming an attractive destination for the trend of shifting production and service supply chains of the world gender Therefore, this is the golden time "once in a thousand years" for Vietnam in general and the IT industry in particular to raise its position and compete fairly on a global scale

In 2020, according to consumer and market data company Statista (Germany), Vietnam's IT service revenue is estimated at 1.12 billion USD, a slight increase compared

to 2019 (1.1 billion USD) In which, the IT service structure includes IT consulting and implementation services, Business process entrustment and other IT services

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Figure 3.3 Revenue of Vietnam IT market in 2020

and forecast to 2025

Data from the Ministry of Information and Communications (Ministry of Information and Communications) shows that the IT industry in Vietnam in the period 2016-2020 recorded positive growth numbers in terms of revenue By the end of 2019, the IT industry has basically completed the 2020 target directed by the Prime Minister In which, the IT industry has an average growth rate of 14.7%, many times higher than the economic growth rate, higher than the industry target (10% target) The software industry maintains a high growth rate, averaging 15% in the 2016-2018 period The average growth rate of the hardware, electronics and telecommunications industries is 20.24% The average growth rate of the digital content industry is 7.47%

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Figure 3.4 Some goals of the IT industry and implementation results in the period 2015-

2020 1.3 IT industry outlook

® World

IDC - The world's leading IT market data provider, forecasts that the global IT industry is on track to reach a revenue of USD 5 trillion in 2021, equivalent to a growth rate of 4.2% Through 2024, IDC predicts this growth momentum will hold, with a compound annual growth rate (CAGR) of around 5%

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Figure 3.6 Forecast of global IT spending growth rate 2021 (according to IDC)

Notably, according to IDC's assessment, investment in direct digital transformation is still increasing with a forecast CAGR of 15.5% in the period of 2020 - 2023 and is expected to reach $6.8 trillion when many companies are doing business Leverage

existing strategies and investments with the help of technology to become the digital business of the future IDC forecasts, by 2022, 65% of global GDP will come from digitization By the end of 2022, 70% of organizations and businesses will accelerate their digital transformation, to transform existing operational processes to enhance customer interactions, improve labor productivity, and enhance resilience of the enterprise By 2023, 75% of global organizations will have a comprehensive digital transformation roadmap, creating a digital revolution in many aspects of business and society, compared to 2020 numbers is 27% Meanwhile, according to Gartner, the leading strategic technology trends in 2021 such as Al, Cloud, Big Data will revolve around 3 main pillars: people, operational space and flexible delivery In which, cloud storage service allows remote production and operation, Al allows automatic and contactless delivery, meeting the requirement to limit close communication to avoid spreading the disease

In important industries of the global economy such as finance, manufacturing, transportation and logistics, the aforementioned core technologies are also expected to explode For the financial industry, technology trends will focus on enhancing the digital banking experience, using Big Data and AI to make accurate predictions about user needs For the manufacturing industry, where the cost of investment in manufacturing technology is forecast by Gartner to increase to $674 billion by 2024, top technology investments will include the application of AI to tools and machines factory machinery, applying 5G to control production remotely, and optimizing IoT, Big Data, automation The transportation and logistics industry with a value of 300 billion USD is currently in a transformation phase stub number This industry will need the support of technologies such as loT, Al, Blockchain and Ommichannel to continue to develop in the coming time

In which, Omnichannel helps to upgrade marketing, sales and logistics activities Blockchain is used to exploit the common data source of shipping lines and supplier systems Al helps with inventory management and supplier selection, while IoT can plan, monitor, and increase security of day-to-day logistics

® In Viet Nam

The global deployment of Covid-19 vaccine will contribute to strengthening the health of the Vietnamese and international economies in the near future, leading to a