FPT Digital a leader in imperative business transformation
FPT Digital, the digital consulting arm of FPT Corporation - a leading Vietnamese technology corporation, has provided IT consultation and services to many Fortune Global 500 clients. FPT Digital's Deputy CEO Le Hung Cuong talks to The Investor about opportunities and challenges in this business segment.
What differentiates FPT Digital from its peers in digital transformation consulting services?
Firstly, we’d like to clarify digital transformation consulting. Vietnam already has many tech companies providing software products and services, but there is not yet any company specializing in digital transformation consulting. Actually, this kind of business is mainly dominated by international consulting firms in Vietnam.
At FPT Digital, we desire to establish an independent digital transformation consultancy in Vietnam, capable of competing with international counterparts. Regarding our objectives, we have significant distinctions and several competitive advantages.
We are a strategic consulting unit of FPT Corp, whose ecosystem includes over 20,000 technology engineers. FPT Corp has 33 years of technology experience, operating in 26 countries in telecoms, media, information technology, retail, education, and finance. Many customers are in the top Fortune Global 500.
FPT has 33 years of experience in the ICT industry, currently operating across Vietnam and 26 foreign countries. The corporation provides IT consulting and implementing services for organizations and enterprises across the globe and industries like telecoms, media, information technology, retail, education, and finance etc. In addition, FPT has successfully commercialized many IT solutions across these industries, therefore it holds competitive advantages to deliver an end-to-end digital transformation process.
FPT Digital is a strategic digital transformation consulting arm of the corporation, so we inherit a huge technology ecosystem, including not only more than 20,000 skilled tech engineers, but also commercialized IT solutions developed by FPT.
We believe that methodology and approach are the most crucial factors leading to the success of consulting projects. FPT Digital has fostered best practices in digital transformation and created related transformation methodology FPT Digital Kaizen™. By using this approach, we focus on three pillars of business, technology and people to truly understand client opportunities and challenges in order to deliver an end-to-end digital transformation process.
FPT Digital experts hold years of experience in successfully implementing many information technology and digital transformation projects for leading domestic and foreign corporations and enterprises. Our consultants on average have 15 years of expertise in technology consulting, and are supported by practical experience from the Senior Advisory Council on Digital Transformation, including the former global CIO of Dupont, one of the biggest chemical firms in the world. Beside our current capabilities, we also pursue strategic partnerships with the world-leading consulting firms like McKinsey.
Both international and Vietnamese businesses are accelerating digital transformation as a vital factor in strong and sustainable growth. What factors ensure the success of digital transformation and bring benefits for a business?
Digital transformation can bring a lot of benefits, like increasing revenue and profit, improving employee efficiency, saving costs, creating new revenue stream, etc. However, 70% of businesses have failed in digital transformation because they are so focused on investing in discrete IT applications without addressing changes in mindsets, perspectives, and business models. Therefore, it is important to find the right way to ensure the success of digital transformation. To ensure a successful digital transformation roadmap, businesses need to focus on three factors.
First, digital transformation requires a high level of organization-wide commitment with top-level leadership and employee participation. Second, digital transformation is a lengthy process that needs a clear roadmap and continuous progress for improvement. Third, under world-wide best practice, businesses need to build up a special and dedicated department named Digital Transformation Office that takes responsibility for its digital transformation.
Though Vietnam is a tech-savvy market, digital transformation is slow. Could you give some explanation?
Regarding the speed of digital transformation in Vietnam, I have a viewpoint different from yours. I have a rather optimistic view since I believe it occurs quite fast.
Digital transformation has been adopted by Vietnamese people in various aspects very fast. For example, we buy products on e-commerce platforms, conduct many online banking transactions via digital banks, travel bookings through technology platforms, work with colleagues online by collaboration platforms. Currently, in the public sector, the government has established many digital public services/ products like ID cards, birth certificates, online passports, online tax, online corporate registration etc. We have seen quite a big change across Vietnam in digital adoption during recent years.
Although the United States, Europe, Japan, Singapore, and other developed nations have already adopted digital transformation, Vietnam boasts the highest growth rate in digital transformation in Southeast East Asia.
Which areas do you see as holding the greatest opportunities for investment in digital transformation?
The population of Vietnam is 100 million, placing it at 15th in the world. Thus, e-commerce, banking, and finance have several opportunities to boost business via digital transformation.
In Vietnam, there is still great room for growth of e-commerce since the associated income accounts for just 6.5% of the commerce sector, compared to 20% in developed economies.
Last but not least, logistics also presents enormous improvement prospects since logistics and related costs account for about 20% of GDP, double the global average.
During his working visit to the U.S. this May, Prime Minister Pham Minh Chinh said digital transformation was one of the areas in which Vietnam seeks to attract FDI. How do you assess opportunities for FDI enterprises?
I believe that there are both opportunities and challenges.
Opportunities include government policy assistance, reasonable internet prices compared to other developed economies, a high mobile penetration rate, and a youthful population. In addition, Vietnam is always ready to learn from the creative momentum of developed countries like expertise, experience and solutions in digital transformation. Therefore, FDI companies have many opportunities to invest, cooperate and apply technology to expand the market in Vietnam.
On the other hand, FDI enterprises must consider Vietnam-specific variables like working culture, consumer behavior, consumption habits, spending habits, etc.. There is no “one-size-fits-all” solutions and FDI must adapt to Vietnamese culture in order to be successful.
FPT has secured agreements on digital transformation consulting in countries including like Sierra Leone. Can you share your experience in this regard?
We have extensive digital transformation partnerships with multinational Fortune 500 corporations. Collaboration varies from providing digital transformation consulting to implementation in various industries. We serve an European client in developing and deploying the most advanced AI platform for aircraft maintenance, fuel efficiency, and cost reduction. We support a Singaporean client in developing many applications and services for the government to enhance capabilities to serve citizens. We have several similar experiences with clients throughout the globe.
Like FDI companies investing in Vietnam, I think the most challenging factor of participating in digital transformation overseas is addressing variation of culture, language, and working style because digital transformation is not only technology but also business and people.
In addition to our technological skills, we establish digital transformation hubs in close proximity to our clients. In each country in which we operate, we employ native-speaking consultants and technologists with an in-depth cultural understanding to better serve clients. Besides, in some critical markets, like the United States, we also engage in mergers and acquisitions with consulting companies like Intellinet in order to enhance the digital transformation presence of FPT. These contribute to the global success of our clients' digital transformation.
What plans and expectations does FPT Digital have for international cooperation across Southeast Asia and the world?
Digital transformation presents a lot of opportunities for Vietnam. We have identified potential opportunities for international partners to expand digital transformation programs in Vietnam as well as opportunities where FPT Digital can cooperate to provide our digital transformation expertise globally.
In our plan, we tend to expand FPT Digital's commercial operations to Japan and Southeast Asia, where FPT Corporation has a strong presence.
To execute digital transformation across Vietnam, we partner with international organizations like consulting firms, infrastructure providers, technological solution providers, and service providers, market research firms, etc.
We believe that cooperation expansion will help us grow our technology ecosystem, enhancing and expanding digital transformation options, enabling Vietnamese businesses to access advanced digital transformation solutions, and supporting foreign businesses to effectively expand their markets in Vietnam.
- Read More
US to support Indonesia in developing small modular nuclear reactors
The U.S. has pledged to assist Indonesia in accelerating the development of small modular nuclear reactors (SMRs), according to Indonesia's Presidential Office.
Southeast Asia - Sat, November 16, 2024 | 12:13 am GMT+7
Singapore's venture capital market grows increasingly attractive
Despite a slump in funding, Singapore’s venture capital market remained active in the first nine months, The Straits Times reported.
Southeast Asia - Sat, November 16, 2024 | 12:08 am GMT+7
VinFast CEO-owned firm secures extra deal to lease EVs to ride-hailing firm
A taxi service provider based in Vietnam’s central province of Binh Dinh will lease 1,000 VinFast electric cars from an electric vehicle (EV) leasing firm that is 90% owned by billionaire Pham Nhat Vuong, the CEO of the Vietnamese carmaker.
Companies - Fri, November 15, 2024 | 8:35 pm GMT+7
Chinese, Vietnamese firms plan $2 bln renewable energy-hydrogen project
3TI Progetti Asia, a local planning-design business, and two Chinese firms plan to invest $2 billion in a hydrogen production project using renewable energy in Vietnam's south-central province of Ninh Thuan.
Energy - Fri, November 15, 2024 | 7:35 pm GMT+7
US Treasury retains Vietnam on ‘monitoring list’ for currency management
Vietnam, a major trading partner, remains on the U.S. Treasury Department’s “monitoring list,” the department has affirmed in its November 2024 report to the Congress.
Economy - Fri, November 15, 2024 | 4:48 pm GMT+7
Vietnam developer Becamex IDC plans to auction 300 mln shares
Becamex IDC Corp, a leading eco-industrial and urban real estate developer in Vietnam, plans to auction 300 million shares with a minimum starting price of VND50,000 ($1.97) apiece on the Ho Chi Minh Stock Exchange (HoSE).
Companies - Fri, November 15, 2024 | 4:43 pm GMT+7
Vietnam shares end in red as US dollar climbs to new high
The U.S. dollar has strengthened against the Vietnamese dong to reach a fresh high on Friday, hampering investor sentiment on the stock market.
Finance - Fri, November 15, 2024 | 4:34 pm GMT+7
IFC invests $1.6 bln in Vietnam, focusing on green transition, private sector resilience
IFC, the private sector lending arm under the World Bank Group, has committed to provided loans totaling over $1.6 billion, including more than $750 million in long-term finance, in Vietnam in its fiscal year ending June 30.
Banking - Fri, November 15, 2024 | 3:09 pm GMT+7
Danang free trade zone earmarked as integrated business urban area
Danang city in central Vietnam has proposed the establishment of a free trade zone (FTZ) as an integrated business urban area to fully capitalize on the city's development advantages.
Economy - Fri, November 15, 2024 | 2:49 pm GMT+7
Vietnam mulls tax relief for Thailand SCG, Korea Hyosung's petrochemicals projects
Deputy Prime Minister Tran Hong Ha has asked the Ministry of Finance to discuss and draft feasible solutions regarding import-export taxes per suggestions of Long Son Petrochemicals and Hyosung Vina Chemicals.
Industries - Fri, November 15, 2024 | 12:49 pm GMT+7
LG Display invests $1 bln more in Vietnam, $5.65 bln in total
LG Display, under South Korea’s chaebol LG, will invest $1 billion more in Vietnam’s northern coastal city of Hai Phong, scaling up its investment in the locality to $5.65 billion.
Industries - Fri, November 15, 2024 | 10:17 am GMT+7
Central Vietnam province Binh Dinh proceeds with 150 MW wind power plant
The administration of Binh Dinh province in south-central Vietnam has announced it will proceed with a VND5.5 trillion ($230 million) investment plan to build a 150 MW wind power plant.
Energy - Fri, November 15, 2024 | 9:32 am GMT+7
Vietnam real estate credit situation positive despite bond risks: VIS Rating exec
Credit accessed by Vietnamese real estate businesses has risen by 15-16% so far this year, said Duong Duc Hieu, director of rating and research at Hanoi-based Vietnam Investors Services (VIS Rating).
Real Estate - Fri, November 15, 2024 | 7:45 am GMT+7
WB approves $750 mln loan to boost Philippines' digital transformation
The World Bank (WB) approved a loan of $750 million on Wednesday to help boost digital transformation in the Philippines.
Southeast Asia - Thu, November 14, 2024 | 10:12 pm GMT+7
Google forecasts Indonesia to become Southeast Asia’s largest digital economy
A new report by Google, Temasek, and Bain & Company projects that Indonesia's digital economy will reach a gross merchandise value (GMV) of $90 billion in 2024, an annual increase of 13% and the largest figure in Southeast Asia.
Southeast Asia - Thu, November 14, 2024 | 10:06 pm GMT+7
Sekisui Heim Group targets low-cost housing investment in Vietnam
Japan’s Sekisui Heim Group is looking to implement affordable and social housing projects in Vietnam, says Ryuji Saimon, a representative of the group’s subsidiary, Thai SCG Heim.
Real Estate - Thu, November 14, 2024 | 9:53 pm GMT+7