With a sense of responsibility, dedication, and effort to "fix" thousands of errors for the map digitization project with Japanese customers in more than 3 months, 120 Vietnamese software engineers received special gratitude from more than 500 Japanese employees.
That is the beautiful moment that software developers at FPT always remember when talking about the milestones of 25 years, since 1999, when the "war" of software export was launched in Vietnam.
25 years ago, very little information about Vietnam appeared in foreign media. During the years 1999 and 2000, there were also a few Vietnamese companies going abroad, but when talking about Vietnam, partners around the world knew nothing more than the two words "war" or asked "Where is Vietnam?". We did not have a national brand.
With the idea that the software industry can turn Microsoft into an empire, making many Chinese and Indian companies rich and influential, Mr. Truong Gia Binh, founder and Chairman of FPT Board of Directors, believes that FPT will also be able to do like Microsoft, Vietnam will also be able to do like China or India. And FPT will go beyond national geographical borders, reaching out to the world like other global companies, FPT will be a pioneer in software export, FPT will mark Vietnam on the world digital technology map.
But from the beginning, Mr. Binh and his colleagues believed that FPT in particular and Vietnam in general could not succeed without the resonance and support from society and state management agencies.
To launch a “war” to export software for Vietnam, FPT initiated a communication campaign, bringing the concept of software everywhere, at all times, to all subjects in society. “Everyone talks about software. The government talks about software. Provinces, cities, and districts also talk about software. From an economic issue, software export has become a political issue, because it not only brings the country some foreign currency but also opens up an opportunity for national development,” recalled Mr. Hoang Minh Chau, Member of FPT Founding Council, Senior Advisor of FPT Corporation.
In 1998, FPT decided to establish FPT's first software export department - "Software 2000" with the task of exporting software to North America, Europe, and Japan in 1998-1999, and opening an office in 2000. In 1999, FPT's first step into the big sea was to open an office in Bangalore, India, which is considered the Silicon Valley of Asia. According to Mr. Pham Minh Tuan, Deputy General Director of FPT and General Director of FPT Software, at that time, FPT people believed that: "India is a software market, and if you stand in the market, you will definitely find a buyer". However, after 1 year of "standing" in the Indian software market, software sales were not favorable. In 2000, the FPT India branch was converted into a representative office and closed shortly after because it did not record any software contracts. Following India was the US. In 2000, FPT opened another office in Silicon Valley, even hiring a “Westerner” as a sales director. “But then we quickly had to close it down for the simple reason that no one wanted to give us work,” recalled Mr. Truong Gia Binh, the “captain” who steered the FPT ship out to sea. “At the first time going abroad, FPT had to “go it alone”. It took us 5 years to convince other technology companies to follow the path of software export,” Mr. Truong Gia Binh regretted. 
In 2002, with the call to establish the Vietnam Software and Information Technology Association (VINASA), FPT was no longer alone on the path to realizing the dream of bringing Vietnamese intelligence to the world. VINASA, together with enterprises such as FPT, CMC, TMA, Hai Hoa..., created a flock of Vietnamese birds flying around the world. In Japan - the most successful market for Vietnamese enterprises today, the first steps were not easy. Chairman Truong Gia Binh sadly recalled: "In the early stages of approaching Japanese partners and customers, because we did not know Japanese, we were tactfully told by customers: "We really want to cooperate with FPT, but please wait until we finish learning English." To respond to Japanese partners, I affirmed, "We will learn Japanese to come back and discuss cooperation with you in Japanese." And now Japan is the largest market with revenue accounting for about 50% of FPT's total IT service revenue from foreign markets, making FPT one of the foreign technology enterprises with the largest number of employees here. 
With the most valuable assets being passion and aspiration, FPT has opened the way to contribute to bringing Vietnamese intelligence to the world, affirming Vietnam's position on the digital technology map.
Chairman Truong Gia Binh concluded: "The big lesson we learned from the above failures and successes is to gain trust in the country and people of Vietnam from our partners."
The stories about FPT below will demonstrate his conclusion.
Receiving an invitation to accept the project from Zenrin, the largest mapping corporation in Japan, FPT Japan Director Do Van Khac thought that this time would be like many other project acceptances that he and his colleagues had done over the past two decades. That is to draw experience and discuss future cooperation opportunities. Thinking so, he only went with one colleague, Nguyen Thi My Chi, who was directly in charge of the project.
But Mr. Khac was wrong. As soon as he entered the door, he and his colleagues saw more than 500 Zenrin employees standing in a circle from the lobby to the corridor on the 3rd floor of Zenrin's headquarters building. They clapped and smiled to welcome him and his colleagues. The two of them were lost in the applause and the circle of Zenrin. Not yet surprised, after the thunderous applause, a Zenrin representative personally presented a certificate of merit to Mr. Khac and his colleagues to thank them for what FPT had done for the success of the project. This was a surprising thank you beyond the imagination of Mr. Khac and his colleagues.
“When I entered, I was ecstatic and a bit overwhelmed by the scene. I couldn’t say anything, I just bowed my head with My Chi in response to the customer’s sincerity,” Mr. Do Van Khac recalled.
Zenrin Group was founded by Mr. Masatomi Osako in 1948. At first, Zenrin was just a travel book publisher in Beppu, Oita, Japan, but Zenrin made a difference with books with detailed maps, making a strong impression on readers in general and tourists in particular. Over time, technology developed, electronic maps gradually became a trendy trend. Zenrin also changed with this trend and they needed a reliable partner to go along with it.
Although not accompanying Zenrin in the project of digitizing the Japanese map from the beginning, FPT played a decisive role in the success or failure of the project. Zenrin set FPT the task of "patching" thousands of errors in just 3 months to ensure the absolute accuracy of the information on the map after digitization. A huge amount of work. Not being able to "patch" all the errors, missing the deadline not only lost money but also lost face with customers, even lost the relationship that had been established since 2015. "We made a great determination and decided: "If we miss the deadline, we have to pay", Mr. Khac recalled.
120 software engineers with experience in the field of maps were quickly mobilized to participate in the project. They worked continuously regardless of the time, continuously connecting the two fronts of Vietnam and Japan with a single goal: to successfully "patch" all errors on time. FPT updated the data, completed all operating procedures, and put the system into excellent operation right on time as required by the partner.
“At that time, we only knew that this was a project that needed to be implemented urgently and seriously, and we accepted it, mobilized resources as quickly as possible, implemented the project well, and reported to our partners daily so that customers could understand, support us promptly, and provide us with input data on time…”, Mr. Do Van Khac recounted.
Zenrin received results much more than they expected, they welcomed and awarded FPT with a certificate of merit in a surprising way. And then, while having dinner together, in the story they told, FPT Japan Director Do Van Khac realized that FPT had done a great job for Zenrin.
“Every market needs trust, especially Japan, bringing value to customers, building trust with enthusiasm and results in work. Let customers meet real people, so they understand your potential, your capacity to meet larger scale, more difficult work, and go the long way with them. I think these are important points for the development of the relationship between the two sides,” Mr. Khac concluded.
After that spectacular “turnaround”, Zenrin has grown steadily. Currently, many companies with map-related business or companies providing map-related services are using Zenrin’s data. And FPT has become a trusted partner, accompanying Zenrin in many larger and more important projects.
The photo capturing the unprecedented historical moment of special gratitude from Zenrin Group was widely spread within FPT with a strong influence. FPT Software Chairman Chu Thi Thanh Ha said, “That photo shows the recognition of customers for the quality of the company’s services and the respect and appreciation of customers for the intelligence of our engineering team. Perseverance, sincerity, and effort will always gain the trust of customers and have big projects, big projects”.
In the aviation sector, FPT has written an "unimaginable" story, becoming a partner of two of the world's leading aircraft manufacturing corporations.
Nearly a decade ago, FPT submitted a proposal to cooperate with Airbus. That proposal was hidden among thousands of other proposals. That means it had never been opened. And FPT’s leaders realized that they needed to find a way to meet the head of Airbus.
As soon as the opportunity arose, Mr. Binh chose not to talk about himself but to ask a question: “In this Digital Transformation revolution, what does Airbus intend to do?” This question hit the nerve of Airbus’s senior leaders, thereby understanding what they wanted.
This question also helped FPT get another appointment with Airbus’s senior leader. In this meeting, FPT’s leader still did not talk about himself but started the conversation with the question, “Can you share with me about the Digital Transformation Strategy?”. In addition to receiving an answer to this question, FPT also received an appointment at Airbus’s headquarters.
In 2017, FPT was the first technology company in Southeast Asia to be selected by Airbus to develop the Skywise platform – an open data platform for the global aviation industry. Together with four other big names, IBM, Accenture, Capgemini, Sopra Steria, FPT developed an application store and provided digital transformation solutions for the aviation industry.
To be on Airbus's partner list, FPT had to spend 5 years diligently doing extremely difficult "exercises" to test its ability in Big Data, Image Processing, AI (artificial intelligence)...
From an “outsider”, thanks to serious investment in technology, especially new technology, FPT is increasingly entering the playground of the world’s aviation giants as a consulting company and providing comprehensive digital transformation service solutions. On every flight, there is a code line “Made by FPT”.
In another potential field, automotive software technology, this leading Vietnamese technology group has signed a contract worth 30 million USD with a Japanese tier-1 company. FPT is responsible for almost all software related to AUTOSAR - the automotive software architecture standard that all companies and manufacturers in the automotive industry must comply with.
According to Everest Group's recent announcement on ACES (Automated, Connected, Electric, and Shared Vehicles) for 26 global automotive software providers, FPT is positioned in the group of major competitors along with many big names such as Infosys, Tata Technologies, Cognizant, NTT DATA...
Over the past 10 years, FPT has built a formidable customer network in the automotive technology sector with 150 businesses, including world-famous brands such as Honda, Hyundai, Volvo, VinFast, Ford, Yazaki, LG, Panasonic, NXP... Notably, in this field, the company has also had customers bringing in 200 million USD in revenue.
Most recently, FPT has also established FPT Automotive in the US to bring new values such as increasing the speed of bringing products to market, expanding coverage, and increasing product development efficiency for car manufacturers worldwide. This move also shows that FPT is focusing on building experience and specialized capacity in specialized fields with potential and good development opportunities in the future.
With a revenue growth rate of about 40% in recent years, the automotive software technology segment has made an important contribution to FPT's goal of reaching the milestone of 1 billion USD in IT service revenue for foreign markets in 2023.
Becoming a trusted partner of the leading giants in various fields is not enough. To supplement and enhance its capacity, FPT has chosen the fastest way to find ways to acquire reputable companies in the same industry from the US, Japan, Europe, etc. through M&A (mergers and acquisitions). Although 60-90% of M&A deals fail due to differences in working culture, fortunately, up to now, FPT's M&A deals have been successful.
Among them, the decision to hand over the "life of the child" that he had raised for the past 12 years by the founder of Next Advanced Communications (NAC) created FPT's first M&A deal in Japan.
After more than 12 years of establishing and developing NAC - a Japanese technology service company with nearly 300 highly qualified and experienced engineers and experts, many of whom are in the world's Top 40 in Salesforce, CRM..., the founder of NAC decided to "sell" the company not to get money, but to choose a trustworthy person to continue nurturing and creating opportunities for the company to grow strongly. In 2 years, NAC's board of directors worked with 17 companies to negotiate this sale, but could not find a suitable partner.
As for FPT, since 2013, M&A activities have been included in the group’s strategy with an estimated budget of 100 million USD/year to enhance technological capacity, expand market scale, customers, and human resources. During that time, FPT has completed many M&A deals in the US and Europe. However, after 7 years of searching, they have not been successful in M&A in Japan until meeting NAC.
“For a long time, we have wanted to build close cooperation with Japanese partners, planning M&A with potential companies in this market. But the Japanese have unique cultural traits, a strong spirit of national solidarity...”, Ms. Chu Thi Thanh Ha, Chairman of FPT Software confided.
In early 2023, FPT learned about NAC and realized that this was the place with the resources it needed. But convincing a Japanese company to sell to foreigners was not easy. FPT representatives had to talk to NAC leaders "several times" to convince them to entrust their brainchild to FPT.
“I have failed many times when looking for M&A deals in Japan, so the first time I bought one I was very happy. It was like first love,” said FPT Japan Director Do Van Khac with a smile.
When the acquisition was completed, FPT invited NAC's leadership to Vietnam. Seeing firsthand what FPT had done and was doing, the old CEO of NAC was moved to tears because he felt his decision to transfer the company was the right one.
“At that time, Mr. Makoto Hanaoka (CEO of NAC) understood that FPT's philosophy of caring for employees and respecting people was very suitable for the way his company operated,” Ms. Chu Thi Thanh Ha recalled.
Since making M&A deals with the goal of conquering the world, “a must-do, not a must-do”, FPT has continuously attracted international enterprises to its side. FPT’s first M&A deal, also the first M&A deal in the Vietnamese IT industry, was signed on June 18, 2014 in Berlin, Germany between FPT and RWE. Immediately after that, RWE IT Slovakia – a company specializing in the IT field of RWE, officially became a 100% European-owned company of FPT and was renamed FPT Slovakia, specializing in providing new services such as urban technical infrastructure (Public Utility System) not only in Europe but also in other markets around the world such as the US and Japan. Then came Intellinet Consultant (US), Intertec International (US), Cardinal Peak (North America) and Oasis (France).
Increasing M&A overseas not only helps FPT shorten the time to penetrate the market, create a position in foreign markets, and enhance the capacity to provide comprehensive IT services to customers worldwide, but is also an important lever to promote revenue growth from the global market with projects worth tens or even hundreds of millions of USD.
Typically, after 5 years, the M&A deal with Intellinet Consultant brought FPT a customer with a turnover of over 100 million USD/year. This is the first customer in FPT's 25-year history of globalization to reach this turnover milestone.
And FPT hopes that if it has the first hundred million USD customer, it will have the second, third hundred million USD customer...
After 35 years of establishment and 25 years of global expansion, FPT is now present in nearly 30 countries and territories, providing digital transformation technology services and solutions to more than 1,000 customers, including nearly 100 customers in the Top 500 largest enterprises in the world (Fortune Global 500).
Assessing FPT's results, Minister of Information and Communications Nguyen Manh Hung once spoke at a conversation with leaders and staff of FPT Corporation on the first working day of the year of the Dragon 2024: "This is a big step forward, a breakthrough, bringing FPT to another rank, another class".
Minister of Information and Communications Nguyen Manh Hung emphasized: “A digital technology enterprise that is not successful abroad cannot be called successful. The information and communications industry is proud to have up to 1,500 enterprises with revenue from foreign markets and the figure has reached over 7.5 billion USD.”, the Minister said.
That belief puts businesses like FPT into bigger dreams.
FPT aims to achieve 5 billion USD in IT service revenue from foreign markets by 2030. This figure will bring FPT to a higher level in the world's billion-dollar IT service enterprise group, with milestones of billion USD from 1 market, billion USD revenue from 1 industry, billion USD contracts and billion USD profits.
According to Ms. Chu Thi Thanh Ha, “For us, a $1 million contract used to be considered big, but now a big contract must be $5 million or $10 million. And the number of big contracts like this is increasing.” In just the first 5 months of 2024, the number of $5 million contracts signed by FPT was equal to approximately 70% of the total number of contracts signed by the Group in the whole year of 2023.
Mr. Truong Gia Binh, Chairman of FPT Board of Directors, shared: “In the past, FPT always had to proactively seek partners and customers, but now many large customers and partners are proactively seeking Vietnam and FPT. It is time for the world to need Vietnam. Vietnam is becoming a new destination for the world in the fields of Artificial Intelligence, automotive technology, semiconductor chips, digital transformation and green transformation. These are also the fields that play an important role in establishing Vietnam's stature in the coming decades.”
With that position, FPT will continue to extend its aspiration to bring Vietnamese intelligence to the world, affirming Vietnam's name on the world digital technology map.
And on July 1, FPT will open its 17th office in Japan. This office will become the new headquarters of FPT Japan, located on the 33rd floor of a Class A building in the center of Tokyo, a prime location for customer access.
Source: https://special.nhandan.vn/25-nam-FPT-xuat-khau-phan-mem/index.html
Comment (0)