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Business Times
3 days ago
- Business
- Business Times
Vietnam's AI ambitions hinge on one US$6.8 billion tech company
[HANOI] Four decades ago, Truong Gia Binh set up a technology company using a single computer in a room loaned by his then-father-in-law, general Vo Nguyen Giap, revered for leading Vietnamese troops in defeating the French and US militaries. That company, FPT, is now Vietnam's biggest listed tech firm. It's central to the government's push to build a technology sector capable of competing with its regional rivals as it seeks to move the nation beyond assembling Nike shoes and Apple devices. FPT has already had some success. Globally, it lists 130 Fortune Global 500 companies, including Airbus, Halliburton and Ford Motor, as clients. It's also partnered with Nvidia to build an artificial intelligence (AI) data centre in Vietnam, another in Japan, and is expanding into semiconductor chip design. But there are significant challenges ahead as it seeks to compete with more established tech companies from the likes of India and Malaysia. FPT must also navigate a new era of tariffs initiated by US President Donald Trump. 'We work day and night,' Binh said. He's confident that, over the long term, the company can maintain an annual revenue growth rate of approximately 20 per cent. Developing a leading-edge technology sector is Vietnam's 'way out of being a low-cost economic hub', said Lam Nguyen, managing director of IDC Indochina. The Communist government sees FPT as a corporate model to help the nation transition beyond its traditional manufacturing base to industries specialising in areas such as AI-related products, which Bain & Co estimates could be a US$990 billion global market by 2027. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up While not directly at risk from new US duties, FPT could experience 'indirect impacts because many of our global customers are affected by these tariffs', the company said. FPT is bracing for possible global economic turbulence, and may 'adjust' its business plan for the challenging 20 per cent revenue growth target this year amid uncertainties, DNSE Securities said on its website, citing FPT chief executive officer Nguyen Van Khoa at the company's April shareholders' meeting. FPT is cutting 30 per cent of costs without hurting its core business, the brokerage said, citing Khoa. It may also need to negotiate a closer relationship with the nation's watchful police. When asked about reports that the Ministry of Public Security, which has been tightening Internet regulations in recent years, seeks to take a majority stake of the company's Internet unit, FPT Telecom, the company said it has 'no additional information on this matter'. Binh holds nearly 7 per cent of FPT, followed by the government, which has a 5.71 per cent stake. 'Followed' Ho Chi Minh Binh's life tracks the history of the winning North Vietnamese forces. In 1954, his family 'followed' revolutionary leader Ho Chi Minh to Hanoi in the cause of independence, the FPT chairman said. The clan was so poor he wore clothes handed down from his sisters and watched as explosives from US bombers rained down on the city. 'My youth was about the lack of nearly everything,' said Binh, 69, who met Ho Chi Minh twice. As a teenager, he was handpicked by the government to study in the former Soviet Union. Upon his return, he and 12 others founded the company, originally called Food Processing Technology at the suggestion of a government minister. It's now the seventh-largest publicly traded company in Vietnam, with a market capitalisation of US$6.8 billion. FPT has more than 80,000 employees and operations in 30 countries. In 2024, the company recorded a 19 per cent jump in full-year revenue to 62.9 trillion dong (S$3.1 billion), aided by contributions from its FPT Software unit. From IT solutions for self-driving cars to industrial robots, FPT has diversified its product expertise in its quest for growth. In April, Sumitomo and SBI Holdings announced they were each acquiring a 20 per cent stake in a FPT unit to hasten AI adoption in Japan. FPT's emergence 'is very similar to the growth stories of some of the Indian IT leaders', said HR Binod, a former Infosys executive vice-president and an independent FPT board member. The company, though, faces mounting challenges, from rising global competition to US tariffs. 'On your home turf, you are strong,' said Louis Nguyen, chief executive officer of Ho Chi Minh City-based private equity firm Saigon Asset Management, which previously owned shares in the company. 'When you compete in the global arena, you go against giants.' Navigating growing geopolitical tensions and trade barriers means 'the company likely will need next-generation leadership with international experience', Lam Nguyen said. Overseas flop FPT's first overseas forays to Silicon Valley and Bangalore in the late 1990s were flops, said Chu Thi Thanh Ha, chairwoman of FPT Software. Facing what she described as a 'life-or-death moment', FPT Software gained a foothold in Japan in 2000 with a Nippon Telegraph & Telephone contract. FPT now has some 4,500 employees in Japan and expects that to rise to 5,000 this year, according to the company. FPT expects revenue from its Japan unit to jump to US$1 billion in 2027 from US$500 million in 2024. Domestically, the government looks to FPT in its quest to have three AI centres and at least 100 chip design companies by 2030 in the country, and a semiconductor industry with annual revenue of more than US$100 billion by 2050. 'It's a national hero,' said Vinnie Lauria, Ho Chi Minh City-based co-founder of Golden Gate Ventures. To that end, FPT – whose co-founders initially trained themselves with tech manuals purchased from Hong Kong during the US embargo of Vietnam – says it has trained thousands of technologists at its five universities nationwide. And it has set up 16 elementary to high school campuses where children as young as first grade begin learning programming languages. 'This is the new Vietnam,' Binh said. BLOOMBERG
Bloomberg
3 days ago
- Business
- Bloomberg
How Nvidia-linked tycoon's school teaches AI to kids
At this tech tycoon's school, children as young as six are being taught how to handle AI. The tycoon behind Nvidia partner FPT thinks it's one way to boost economic development in Vietnam. Haslinda Amin takes you inside the classroom. (Source: Bloomberg)
Straits Times
3 days ago
- Business
- Straits Times
Vietnam's AI ambitions hinge on one $8.8 billion tech company
HANOI – Four decades ago, Truong Gia Binh set up a technology company using a single computer in a room loaned by his then-father-in-law, General Vo Nguyen Giap, revered for leading Vietnamese troops in defeating the French and US militaries. That company, FPT Corp., is now Vietnam's biggest listed tech firm. It's central to the government's push to build a technology sector capable of competing with its regional rivals as it seeks to move the nation beyond assembling Nike shoes and Apple devices. FPT has already had some success. Globally, it lists 130 Fortune Global 500 companies, including Airbus, Halliburton and Ford Motor as clients. It's also partnered with Nvidia to build an AI data centre in Vietnam, another in Japan, and is expanding into semiconductor chip design. But there are significant challenges ahead as it seeks to compete with more established tech companies from the likes of India and Malaysia. FPT must also navigate a new era of tariffs initiated by US President Donald Trump. 'We work day and night,' Mr Binh said in an interview with Bloomberg Television. He's confident that, over the long term, the company can maintain an annual revenue growth rate of approximately 20 per cent. Developing a leading-edge technology sector is Vietnam's 'way out of being a low-cost economic hub,' said Lam Nguyen, managing director of IDC Indochina. The Communist government sees FPT as a corporate model to help the nation transition beyond its traditional manufacturing base to industries specialising in areas such as AI-related products. While not directly at risk from new US duties, FPT could experience 'indirect impacts because many of our global customers are affected by these tariffs,'' the company said in an emailed statement. FPT is cutting 30 per cent of costs without hurting its core business, DNSE Securities said on its website, citing FPT chief executive officer Nguyen Van Khoa at the company's April shareholders' meeting. It may also need to negotiate a closer relationship with the nation's watchful police. When asked about reports that the Ministry of Public Security, which has been tightening internet regulations in recent years, seeks to take a majority stake of the company's internet unit, FPT Telecom, the company said it has 'no additional information on this matter.'' Mr Binh holds nearly 7 per cent of FPT, followed by the government, which has a 5.71 per cent stake. 'Followed' Ho Chi Minh Mr Binh's life tracks the history of the winning North Vietnamese forces. In 1954, his family 'followed' revolutionary leader Ho Chi Minh to Hanoi in the cause of independence, the FPT chairman said. The clan was so poor he wore clothes handed down from his sisters and watched as explosives from US bombers rained down on the city. 'My youth was about the lack of nearly everything,' said Mr Binh, 69, who met Ho Chi Minh twice. As a teenager, he was handpicked by the government to study in the former Soviet Union. Upon his return, he and 12 others founded the company, originally called Food Processing Technology at the suggestion of a government minister. It's now the seventh-largest publicly traded company in Vietnam, with a market capitalisation of US$6.8 billion (S$8.8 billion). FPT has more than 80,000 employees and operations in 30 countries. In 2024, the company recorded a 19 per cent jump in full-year revenue to 62.85 trillion dong (S$3.1 billion), aided by contributions from its FPT Software unit. From IT solutions for self-driving cars to industrial robots, FPT has diversified its product expertise in its quest for growth. In April, Sumitomo Corp. and SBI Holdings announced they were each acquiring a 20 per cent stake in a FPT unit to hasten AI adoption in Japan. The company, though, faces mounting challenges, from rising global competition to US tariffs. 'On your home turf, you are strong,' said Louis Nguyen, chief executive officer of Ho Chi Minh City-based private equity firm Saigon Asset Management, which previously owned shares in the company. 'When you compete in the global arena, you go against giants.' FPT Software gained a foothold in Japan in 2000 with a Nippon Telegraph & Telephone contract. FPT now has some 4,500 employees in Japan and expects that to rise to 5,000 this year, according to the company. FPT expects revenue from its Japan unit to jump to US$1 billion in 2027 from US$500 million in 2024. Domestically, the government looks to FPT in its quest to have three AI centres and at least 100 chip design companies by 2030 in the country, and a semiconductor industry with annual revenue of more than US$100 billion by 2050. 'It's a national hero,' said Vinnie Lauria, Ho Chi Minh City-based co-founder of Golden Gate Ventures. To that end, FPT – whose co-founders initially trained themselves with tech manuals purchased from Hong Kong during the US embargo of Vietnam – says it has trained thousands of technologists at its five universities nationwide. And it has set up 16 elementary to high school campuses where children as young as first grade begin learning programming languages. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Bloomberg
3 days ago
- Business
- Bloomberg
Nvidia Tie-Up helps Vietnamese Tech Tycoon Bet Big On AI
Vietnamese tech tycoon Truong Gia Binh founded FPT nearly 40 years ago. From robots and software to telecoms and data centers, it's investing in AI with partners like Nvidia. Binh is embedding AI education in the classroom and sees the next generation as the key to Vietnam's development. Binh speaks to Bloomberg's Haslinda Amin about his journey - and Vietnam's - from the legacy of war to the fast pace of technological change in the latest episode of Latitude. (Source: Bloomberg)
Yahoo
5 days ago
- Business
- Yahoo
FPT Joined Inaugural Vietnam-France Leaders Forum, Strengthening Bilateral Business Cooperation
HANOI, Vietnam, May 27, 2025--(BUSINESS WIRE)--FPT Corporation (FPT) recently participated in the inaugural Vietnam-France Leaders Forum, an initiative that marked a significant milestone in strengthening economic ties between the two countries. Co-chaired by FPT Chairman Dr. Truong Gia Binh and Artelia Executive Chairman Mr. Benoit Clocheret, the event was held during French President H.E. Emmanuel Macron's official state visit to Vietnam. The forum brought together nearly 50 representatives from leading Vietnamese and French enterprises across various sectors, including aerospace, banking & finance, energy, retail, healthcare, education, and more. Notable participants from Vietnam included the Vietnam Software & IT Services Association (VINASA), FPT, Vietjet, CMC, BIDV, BRG Group, and TH Group. On the French side, representatives from the French Embassy, the Movement of the Enterprises of France (MEDEF), the French Chamber of Commerce and Industry in Vietnam (CCIFV), French Foreign Trade Advisors (CCE), Business France, and major industry players such as Airbus, Alstom, TotalEnergies, Odyssey, Thales, Suez, EDF, SNCF, and Systra were in attendance. Vietnam-France Leaders Forum focuses on strengthening business ties between France and Vietnam, leveraging both nations' comprehensive strategic partnership and shared ambitions. It emphasized fostering collaboration, joint ventures, and lasting partnerships between leading companies from both countries to achieve mutual national transformation goals. Looking ahead, the forum is set to become a recurring event, held annually on a rotating basis between the two countries, to sustain dialogue and jointly address evolving business challenges. "Vietnam and France share a profound bond rooted in history and culture, which is a strong foundation for a future defined by innovation, shared prosperity, and strategic cooperation. I strongly encourage Vietnamese and French businesses to take the lead in forging new economic partnerships that reflect the dynamism of our two nations. The Vietnam–France Leaders Forum was created to serve as a catalyst for this vision, bringing together leaders, ideas, and opportunities to build a prosperous future together," said Dr. Truong Gia Binh, FPT Founder and Chairman. To further support French companies in addressing global challenges, FPT Chairman also proposed a co-location strategy, encouraging French businesses to establish a presence in markets where FPT actively expands its workforce. "While France and Vietnam face some different challenges, we also tackle similar ones in sustainable development, industrial digitalization, and social transformation. That is why we encourage forum members to establish ventures and partnerships in both countries, and aim to attract more French companies, from large firms to SMEs, to develop business in Vietnam, while encouraging Vietnamese corporations to expand into France," said Mr. Benoit Clocheret, Artelia Executive Chairman. The forum featured roundtable discussions that delved into market insights, business expertise, and opportunities for bilateral collaboration. Representatives from Vietnam and French businesses expressed strong interest in forming strategic partnerships in key areas such as sustainable energy, urban development, modern transportation, healthcare, retail, IT talent training, and financial services. As a representative of Vietnam's IT sector, FPT Executive Vice President Pham Minh Tuan emphazised FPT's key differentiator of comprehensive ecosystem, with education system covering from elementary to university level, providing training not only in languages and advanced technologies like artificial intelligence, but also business etiquettes that enables people to work effectively across diverse cultures. "Looking into the future, FPT commits to generating millions of jobs for the young generation, and building successful partnerships with French enterprises in any form of collaboration, not only in Vietnam but also for the global market", he said. At the event, FPT and Odyssey Education signed a Letter of Intent to introduce a high-quality French education program into Vietnam's academic system. Odyssey Education is a renowned French international education group specializing in providing French curricula across Europe, North Africa, and Southeast Asia, as well as a partner of The Agency for French Education Abroad (AEFE). France was the first European country that FPT expanded into in 2008. The company has since collaborated with global leaders, including Airbus, La Poste, Air Liquide, Quadient, Canal+, Sagemcom, SNCF, Geopost, and more. In 2023, FPT's French subsidiary was recognized among France's Top 100 ICT Companies, underscoring its growing influence in the country. That same year, FPT deepened its local capabilities by acquiring a majority stake in AOSIS, a French IT consulting firm specializing in SAP, Data, Cloud, and smart solutions for the aerospace, aviation, and transportation sectors. To further strengthen cultural and professional ties, FPT also launched the FPT Francophone Association, aimed at developing French-speaking talent and fostering business and cultural exchange. Most recently, in May 2025, FPT was the only Vietnamese company to participate in the Choose France Summit in Paris, affirming its long-term commitment to the French and European markets, and expressing interest in strategic partnerships in AI, semiconductors, transportation, energy, and education. About FPT FPT Corporation (FPT) is a globally leading technology and IT services provider headquartered in Vietnam and operates in three core sectors: Technology, Telecommunications, and Education. Over more than three decades, FPT has consistently delivered impactful solutions to millions of individuals and tens of thousands of organizations worldwide. Committed to elevating Vietnam's position on the global tech map and delivering world-class solutions for global enterprises, the Corporation focuses on five strategic areas: Artificial Intelligence, Automotive, Semiconductor, Digital Transformation, and Green Transformation. In 2024, FPT reported a total revenue of USD 2.47 billion and a workforce of over 54,000 employees across its core businesses. For more information about FPT's global IT services, please visit View source version on Contacts Media Contact Mai Duong (Ms.)FPT CorporationFPT Software PR
