{"id":4243,"date":"2021-06-26T12:14:00","date_gmt":"2021-06-26T12:14:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/fpt-truong-gia-binh-hfs_062621\/"},"modified":"2021-12-20T12:39:53","modified_gmt":"2021-12-20T12:39:53","slug":"fpt-truong-gia-binh-hfs_062621","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/fpt-truong-gia-binh-hfs_062621\/","title":{"rendered":"Dig in with Dr. Truong Gia Binh \u2013 How Vietnamese IT services powerhouse FPT is vying to be a global transformation challenger"},"content":{"rendered":"

The scramble for talent and resources triggered by the virtual environment has thrown the world of global sourcing on its head.\u00a0 Our new HFS\u00a0Pulse study covering 800 Global\u00a02000 Enterprises clearly shows us enterprise leaders are evaluating all options (offshore, nearshore, onshore, WFH, crowdsourcing).\u00a0 Simply put, the need for tech talent and niche specialization is at an all-time high and we need more options available than merely the traditional vehicles:<\/p>\n

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Click to Enlarge<\/em><\/a><\/p>\n

Dr. Truong Gia Binh, Chairman of FPT Corporation, has a vision to bring Vietnamese capabilities to serve the world and make Vietnam one of its premier AI hubs. FPT has charted its roadmap to enter the Global Top 50 digital transformation provider list in the coming decade \u2013 the key drivers to this being FPT\u2019s experience across multiple sectors, its focus on emerging technologies, a whopping 76% demand for digital transformation within Vietnam as a result of COVID-19, and a young population that excels with numbers. FPT\u00a0formally launched its transformation consulting practice\u00a0FPT\u00a0Digital in February and raised its overseas transformation revenue targets by 50% for 2021.<\/p>\n

Here are 5 key highlights about FPT you need to know:<\/p>\n

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  1. FPT\u2019s desire to be at the top of the game
    \n<\/strong>In the initial years, FPT started off by democratizing Office Computer Skills across all backbone sectors of Vietnam. FPT\u2019s global presence now covers 26 countries around the world, with the goal of becoming one of the Global Top 50 digital transformation providers within the next ten years.<\/li>\n
  2. Vietnam: <\/strong>An A<\/strong>spiring <\/strong>D<\/strong>igital <\/strong>N<\/strong>ation
    \n<\/strong>Vietnam is a young nation, and FPT desires to make Vietnam an AI hub of the world and bring Vietnamese quantitative capabilities to the world through implementations of Digital Transformation. Through encouraging support of the government, he is hopeful that the digital economy will contribute to 30% of the overall in the next 10 years.<\/li>\n
  3. COVID-19 as a catalyst for digital transformation
    \n<\/strong>Vietnam has been highly resilient during the COVID-19 pandemic, and technology has played a key role. Vietnam\u2019s Government adopted innovative digital tools for contact tracing and disseminating information.
    \nTo respond to the COVID challenge, FPT transformed internally and changed the approach towards customer delivery. They became a comprehensive digital transformation partner of various industry leaders, enhanced their consulting capabilities through acquisitions, and set up new delivery centers in 2020 to expedite the new approach.<\/li>\n
  4. Emerging Technologies and <\/strong>Made-in-Vietnam <\/strong>S<\/strong>oftware
    \n<\/strong>FPT plans to bring its synergy of methodology and industry experience to the world. In the first 3 industrial revolutions, Dr. Binh notes they were busy fighting for survival whereas today, as the world embraces Industry 4.0, Vietnam has the opportunity to join the race from the same starting point \u2013 just as any leading country in the world. A lot of enterprises in Vietnam do not have legacy technology and are hence making a start directly in digital.<\/li>\n
  5. The <\/strong>R<\/strong>ise of <\/strong>D<\/strong>igital <\/strong>P<\/strong>latforms
    \n<\/strong>The world post-COVID-19 will look very different, and Dr. Binh believes a platform economy is on the rise. Most business leaders in Vietnam have planned for digital transformation, which is an indicator of huge market potential for FPT and digital platforms such as FPT.AI.<\/li>\n<\/ol>\n

    To go deeper, we invite you to dive into the full details of the discussion between FPT’s\u00a0Chairman,\u00a0Dr. Truong Gia Binh,\u00a0and Phil Fersht:<\/p>\n

    Dr. Truong Gia Binh, Chairman FPT\u00a0Corporation<\/em><\/figcaption><\/figure>\n

    FPT\u2019s desire to be at the top of the game <\/span><\/strong><\/p>\n

    Phil Fersht, CEO and Chief Analyst, HFS Research: <\/strong>Dr Binh, tell us a more about yourself and how you came to be Chairman of Vietnam\u2019s premier IT service provider?\u00a0 Was this what you had always planned when you were starting out with your career?<\/span><\/p>\n

    Dr Tr\u01b0\u01a1ng Gia B\u00ecnh, Chairman, FPT Corporation:<\/strong> Starting a business was not in my initial plan, Phil. In the late 1970s, the wars left Vietnam as one of the poorest countries in the world, with GDP per capita less than $100. Food was not sufficient to feed the population.<\/p>\n

    As a research fellow in Russia at the time, I noticed that Vietnamese people were often looked down upon. So I gave up pursuing my research career and joined 12 fellow scientists to found FPT. My strongest desire at that time was to get out of poverty, and entrepreneurship was the way.<\/p>\n

    Phil:\u00a0<\/strong>How did FPT become a leader in the market?<\/span><\/p>\n

    Dr B\u00ecnh:<\/strong> In the first 10 years, FPT democratized Office Computer Skills across all backbone sectors of the economy.<\/p>\n

    In the following 20 years, we decided to go global. Our strategy was to stand on the shoulders of giants. We partnered with global disruptors such as Microsoft, IBM, Siemens, and so on, and today, more than 100 of our customers are in the Global Fortune 500.<\/p>\n

     <\/p>\n

    “Our strategy was to stand on the shoulders of giants.”<\/span><\/span><\/p>\n

     <\/p>\n

    From easy projects worth $1,500 USD a month, we\u2019re now charging up to $40,000 a month for complex projects that involve digital transformation (DX) consulting. FPT has entered the world\u2019s most demanding markets: Japan, US, Europe. Today our global presence covers 26 countries around the world. But we won\u2019t stop. Our next big goal is to become the Global Top 50 digital transformation provider within ten years.<\/p>\n

    <\/p>\n


    \nVietnam: An Aspiring Digital Nation <\/strong><\/span><\/p>\n

    Phil:\u00a0<\/strong>Can you share with us some insight into the business environment in Vietnam these days?\u00a0 <\/span><\/p>\n

    Dr. Binh:<\/strong> During the time FPT was set up, Vietnam changed to the policy named \u201cDoi Moi\u201d, which is a kind of market economy. And for the last 35 years, Vietnam grew by 7% annually. Vietnam is quite a young nation, with an average age of about 27 years, and every year we have 1 million more people in the labor resources. Vietnamese are very strong with numbers, and that is why we are trying to leverage the love of logic, love of math, and now it is Artificial Intelligence.<\/p>\n

    For the last 20 years, my dream is that Vietnamese intelligence should serve the world, and now I have another big dream that Vietnam should be kind of an AI hub of the world. We operate with the Mila AI Institute, and we are sending the PhD students there. We are developing our capabilities in new technologies like cloud, IoT, big data, robotics, etc.<\/p>\n

    Vietnam has decided to catch up with the world in the Fourth Industrial Revolution, and therefore digital transformation is the focus area for us. The government requests that every ministry and every province must have a program for digital transformation.<\/p>\n

     <\/p>\n

    “The digital economy will contribute to 30% of the overall economy in next 10 years. They also plan 1.5 million of youth to be the resources for digital development. Although this is a challenge, it has been so far so good.”<\/span><\/span><\/p>\n

     <\/p>\n

    The digital economy will contribute to 30% of the overall economy in the next 10 years. They also plan 1.5 million of youth to be the resources for digital development. Although this is a challenge, it has been so far so good.<\/p>\n

    Phil:\u00a0<\/strong>How had things developed in Vietnam in recent years, especially prior to the COVID era?<\/span><\/p>\n

    Dr. Binh:<\/strong> We had grown at around 6 to 7% between 2016 and 2019. Last year, despite being affected by COVID-19, Vietnam still posted positive GDP growth of 2.8%. High tech exports were higher than competitive regional peers in APAC (60 B USD) in 2019 (World Bank, WEF 2019)<\/p>\n

    Phil:\u00a0<\/strong>When compared with other countries, in which areas do Vietnam lead, and where do you see the country needs to develop further?\u00a0<\/span><\/p>\n

    Dr. Binh: <\/strong>Vietnam is a rising digital nation. Vietnam\u2019s digital economy is the second-fastest-growing market in Southeast Asia, according to a recent report by Google, Temasek, and the US-based global management consultancy Bain. However, the challenge is in shortage of digital workforce: we need an additional 190,000 IT engineers by the end of 2021. However, FPT is very optimistic and looking to become one of the leading companies in DX consultancy, bring Vietnam to the same level as technology giants.<\/p>\n

    Phil:\u00a0<\/strong>Do you believe there is a pivotal role for the government to play?<\/span><\/p>\n

    Dr. Binh: <\/strong>The Government has shown its commitment to reinventing the country. An example of it is the National Program for Digital Transformation<\/a>, which involves targeting the following by 2030:<\/p>\n