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After over a decade of pioneering AI development, Mr. Nguyễn Thế Phương asserts that FPT is positioning itself to deliver comprehensive AI solutions on a global scale.
“We are only taking the first few steps in the AI Revolution”
In 2023–2024, global stock markets have been driven by the technology sector, fueled by the explosive wave of Generative AI (GenAI). Speaking at the recent C2C – Connecting to Customers webinar, titled “FPT: Leading AI – A Growth Catalyst” and organized by HSC Securities, Ms. Vũ Thị Thu Thủy, Director of Information and Market Insights in the Technology Division, noted that AI is not a new concept. Its first wave occurred from 2018 to 2023, coinciding with the advent of the Fourth Industrial Revolution.
In the AI value chain, applications occupy the top layer, serving enterprises and consumers. Below this is the data infrastructure layer, comprising numerous tools and foundational systems such as cloud services that enable application operation. At the base lies the hardware layer, consisting of superchips capable of processing massive amounts of data at high speeds, such as Nvidia and AMD semiconductor chips.
According to McKinsey, the ongoing explosion of GenAI is projected to continue for 3–5 years, with 2024 marking a breakthrough in the data infrastructure layer. The greatest value and most intense competition are expected to emerge in the top-layer applications.
Sharing this perspective, Mr. Nguyễn Thế Phương, Deputy CEO and CFO of FPT, and Chairman of FPT Smart Cloud, expressed optimism about AI’s development prospects. The global Generative AI market reached $196.63 billion in 2023 and is forecast to grow at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030.
The FPT executive highlighted that AI brings two primary benefits to businesses: increased revenue and operational efficiency. According to McKinsey, Generative AI could save the global economy between $26 trillion and $44 trillion. “With these values, we are highly confident in AI’s vast potential in the near future,” said Mr. Nguyễn Thế Phương.
Mr. Lê Hồng Việt, CEO of FPT Smart Cloud, added that Vietnam, with its young population, is among Southeast Asia’s most eager adopters of AI. AI has already permeated various aspects of Vietnamese life, creating value in fields such as finance, insurance, retail, and pharmaceuticals.
“I believe this is just the beginning. AI’s potential remains vast, promising even greater value. We have only taken the first few steps in the AI revolution, with a long journey still ahead,” emphasized the CEO of FPT Smart Cloud.
FPT as a Pioneer in a Comprehensive AI Ecosystem
Vietnamese enterprises have already laid the groundwork across all layers of the AI value chain. The shift of technology manufacturing to Vietnam presents tremendous opportunities for Vietnamese businesses to learn, leapfrog, and climb higher in the value chain. As a pioneer in the AI market and a player in chip design, FPT expects to benefit significantly from this trend.
Having entered the AI market in 2013, FPT has established itself as Vietnam’s leading technology company, with numerous “Vietnamese technology, global position” products. In 2023, FPT has focused on Generative AI and Computer Vision, while expanding strategic partnerships with Nila, Landing AI, and most recently, Nvidia.
Elaborating on FPT’s role in the value chain, FPT Smart Cloud CEO Lê Hồng Việt explained that today’s AI advancements are closely tied to technological and cloud algorithm progress. With its strategic partnership with Nvidia to establish an AI Factory, FPT will provide GPU cloud services, enabling global enterprises to access core resources to enhance research capabilities and accelerate AI applications, particularly Generative AI.
Furthermore, FPT has developed numerous AI models for language, imagery, programming, and design, integrating them into various fields to ensure diverse foundational knowledge for AI. FPT also provides platforms that allow users and businesses to apply AI effectively while offering comprehensive solutions for domestic and international clients. This highlights FPT’s deep involvement across all stages of the AI value chain, from foundational platforms to models, products, and solutions.
Competitive “Weapons” positioning FPT at the forefront of the AI market
FPT’s competitive edge is built on several key factors:
- Early Investment in AI: FPT made a bold decision to invest in AI at its nascent stage, staying ahead of competitors by up to five years. Currently, FPT offers 20 different products and solutions to domestic businesses, leveraging its understanding of Vietnam-specific materials and language nuances.
With a strategy to integrate AI into all operations, FPT has created numerous products tailored to market needs, enabling the company to maintain a dominant domestic market share. Notably, two-thirds of financial institutions in Vietnam use at least one FPT product.
- Collaborative AI Development Model: Beyond solving internally identified problems, FPT develops AI models through a collaborative approach with end-users and technology creators. This involves educating clients on how to apply AI to drive growth in specific areas. This model has proven highly effective in Vietnam, where AI is still relatively new, and clients may not yet fully grasp the technology’s value.
- A Decade of Comprehensive AI Ecosystem Leadership: FPT takes pride in its extensive AI expertise, with a large team of AI specialists poised for further expansion. The establishment of an AI Research and Application Center in Quy Nhơn is a testament to FPT’s commitment. With Vietnam’s abundant talent pool in algorithms, the country is well-positioned to become a global AI hub.
FPT’s AI products have delivered tangible benefits to businesses. Examples include transforming Home Credit’s customer care centers, Vietcombank’s VCB Digibot smart assistant, and improving workforce quality with FPT AI Mentor (Long Châu).
AI as a Growth Catalyst for FPT in the Coming Era
After over a decade of pioneering AI development, Mr. Nguyễn Thế Phương reiterated FPT’s goal of providing comprehensive AI solutions globally. AI will drive the company’s growth through three main objectives:
- Supporting Internal Development Needs: Increasing revenue, productivity, and operational efficiency. Despite a consistent 20% annual profit growth, FPT’s tech workforce has grown minimally, reflecting its operational efficiency.
- Strategic Business Opportunities: Both direct opportunities from AI products/services and indirect opportunities arising from the AI wave in four key sectors: manufacturing, automotive technology, finance and banking, and healthcare.
- Elevating Vietnam’s AI Standing: Positioning Vietnam as a regional AI hub by advancing infrastructure, applications, and services.
For 2024, FPT aims for strong growth in its technology segment, targeting a 21% revenue increase and a 25% pre-tax profit rise, contributing 61% and 47.8% to FPT’s totals, respectively. To achieve $5 billion in software export revenue by 2030, FPT plans to accelerate digital transformation, emphasize green transformation, and delve into intelligent transformation, particularly in automotive technology and semiconductor chip production.
FPT also plans to invest $300 billion in AI R&D between 2021 and 2025, including a $200 million investment in AI Factory infrastructure through its strategic collaboration with Nvidia. “We are confident in seizing opportunities as the AI market booms in the near future,” affirmed Mr. Nguyễn Thế Phương.
Regarding the Nvidia collaboration, FPT believes Nvidia sees potential in the Japanese market, which accounts for 50% of FPT’s global revenue. While Japan has been slower to adopt AI, it holds significant investment potential. This market will remain a key focus for FPT in the coming years.
Responding to investor queries about when the Nvidia partnership will yield revenue and profits, FPT leaders stated that timelines depend on investment and delivery progress. The $200 million investment is expected to generate a quick return within 3–5 years. Revenue will primarily come from AI Factory infrastructure and Global Systems Integrator initiatives. AI Factory revenues are projected to materialize this year, recorded under FPT Smart Cloud, while the latter will be accounted for under FPT Software. Accordingly, FPT expects revenue from the AI Factory this year.