A CXpose.tech chat with FPT Software’s SEVP for Asia & Australasia markets and CEO of FPT Japan  about its recent announcements and goal to be a regional IT service player, leads this journalist to have a deeper look also at what Vietnam has been through as a country, economy, and tech hub.

Vietnam emerged as a significant hotspot for foreign direct investment (FDI), driven by its strategic location, favorable economic policies, and a young, tech-savvy workforce with a median age of 30 years. In 2023, Vietnam ranked as one of the top destinations for FDI in Southeast Asia, with substantial investments flowing into various sectors, particularly technology and manufacturing.

Upcoming cities in Vietnam’s tech future

As companies establish their presence in Vietnam, there has been a parallel increase in demand for ICT and digitalization, further fueled by rapid digital transformation across industries and Vietnam’s own tech rennaisance driven by the very levers that make it an attractive FDI destination. 

Few companies have shaped Vietnam’s technological ascent like FPT Corporation. As the nation evolves into a formidable force in the tech arena, FPT’s far-reaching capacity-building initiatives – spanning from education for primary to tertiary levels and beyond, to university curriculum that specializes in high-demand fields such as AI, semiconductors, and automotive software engineering – will be instrumental in building its human capital foundation.

Key markets and activities

Do Van Khac is CEO of FPT’s Japan subsidiary; he also oversees other APAC offices. He shared about the average 30% growth rate of the region that he oversees and identified Japan, Korea, and Singapore as key markets for the corporation.

Do Van Khac

Khac was also frank about FPT’s potential as a regional tech service player among all the other Southeast Asia countries. “I think only FPT can. We are one of the biggest players in Asia, and this year together with IT service companies from India and Japan, we rank among the top 50 IT service companies in Asia.

The Cloud and AI Opportunity 

Due to geopolitical risks and tensions, many global tech companies are looking to diversify their operations beyond China, and Vietnam is seen as an attractive alternative location, with its stable political environment and proximity to key markets like Japan and Korea. 

FPT has built strong relationships with Japanese companies over the past 20 years, evident from FPT Japan’s 3,500 employees working in 17 local offices and innovation hubs to serve over 450 clients worldwide. The Korean community in Vietnam has become one of the largest foreign groups in the country, a testament to the huge investments and manufacturing activities that major conglomerates like Samsung, Hyundai, LG, and KIA have established in Vietnam.

Due to vendor consolidation, there was an urgent request from Cox Automotive and in 14  months we grew from zero to over 1,300 skilled workers for them.

Khac also observed AI technology as having fueled the semiconductor industry. With semiconductor factories from Taiwan and China shifting to Vietnam, there currently is opportunity for the country to expand its capabilities to offer chip design, packaging, semiconductor testing, and so on. 

Truong Gia Binh

Khac quipped, “In the media, Mr. Jensen Huang has already announced  plans for Vietnam to become a significant hub for the company.”

The close ties are undeniable as FPT is selected to be one of NVIDIA’s partners in the region to establish innovation centers in Japan, along with other top systems integrators like Deloitte, Accenture, Kyndryl, and TCS Japan. Additionally, with Vietnam’s goal to be an AI and semiconductor hub, FPT is using NVIDIA technology to build a USD200 million AI factory.

FPT chairman Truong Gia Binh had said in a statement, “FPT is committed to digital transformation, AI, cloud, and education… working to achieve its vision to turn Vietnam into an AI hub of the world through collaboration with NVIDIA  in technology, business development, and training.”

The FPT AI Factory was launched in Japan as a full-stack NVIDIA accelerated computing platform that can expedite AI development via cloud and AI services for Japanese customers with sovereign AI features.

Human capital development

FPT prides itself on being at the forefront of developing tech talent in Vietnam through a variety of strategic initiatives that aim to nurture the next generation.of technology professionals. For example, the corporation established its own educational institution, FPT University, and located it in close proximity to its campuses so that students could participate in FPT’s internship programs.

Chu Thi Thanh Ha

FPT Software chairwoman, Chu Thi Thanh Ha, shared an inspiring story about how it was able to very quickly ramp up the workforce for a client, Cox Automotive, four years ago. “Due to vendor consolidation, there was an urgent request from Cox Automotive and in 14 months we grew from zero to over 1,300 skilled workers for them.”

More recently, FPT supplied talent in Vietnam and Mexico for another client in 45 days. She shared that this speaks to FPT’s ability to support their customers’ business continuity plans and demand for domain expertise.

Besides establishing classes that teach languages like English, Japan, Korean, Chinese, and German, the top 30% of university graduates in the country are hired by the FPT Corporation.

Ripe for startups

Cities like Ho Chi Minh City and Hanoi are becoming hubs for tech startups and incubators, and four tech unicorns – VNLIFE, VNPay, VNG, and Tiki – each valued at over USD1 billion have emerged from this country.

FPT plays its role by reserving 5% of its profits for R&D, setting up a dedicated team focused on incubating startup ideas sourced internally and externally, and even nurturing small startups as their subsidiaries. One example of this is Base.vn, a decade-old company FPT acquired two years ago, that focuses on delivering digital transformation to SMEs in Vietnam.

Khac shared, “We are also exploring the idea of allowing AI startups to use our GPU resources in exchange for equity in their company.” In this way and by encouraging employees to join startups in their spare time, FPT contributes resources and skills to the ecosystem, in anticipation of these startups’ future success and mutual benefit for FPT via equity arrangements.