Economic Factors affecting FPT software

1. FPT’s Software background (Competitive advantage)

In the past, FPT's technology revenue mainly came from small and fairly manual projects such as integration,
coding and order processing instead of developing highly patented software products. These are the last stages
and bring the lowest profit margin in the technology value chain according to the "smile curve" theory of Stan
Shih (founder of Acer corporation). It can be said that FPT at that time was considered as a technology
processing factory.

However, things started to change in 2018, FPT successfully announced the acquisition of Intellinet. Intellinet is
a consulting company specializing in the design of systems for the largest and fastest growing companies in the
US. The investment in Intellinet has helped FPT's reputation to a new level as well as helping to increase the
group's capacity in digital transformation.

3 competitive advantage of FPT (Source: FPT Annual Report - 2018)

- Experienced and systematic process
Experience in implementing core information systems of thousands of domestic enterprises as well as
providing IT services for over 650 leading corporations in the world, including 100 corporations in the Fortune
Global 500 list.

Human resources
Large team of young technology engineers, capable of learning new technologies quickly.
System of training facilities, applying the most advanced training technologies, providing high-quality
human resources, associated with industry practices, ready to meet resources for digital transformation

- International technology
Quickly catching up with technology trends and focusing on investing in core technology research,
developing a number of digital transformation platforms based on new technologies such as AI, Big Data
Analytics, Connecting Things, Electricity cloud computing…, has provided services to many customers around
the world.
Partner and having more than 1,200 technology certificates of the world's leading firms such as
Microsoft, Amazon Web Services, GE, Siemens, Schneider Electric, Airbus...
 Criteria Home country Host Country

Vietnam US Japan

Economic position Revenue is expected to Most revenue will be The country’s software
(GDP) & Market growth show an annual growth generated in the United market, estimated at
rate (CAGR 2023-2027) States (US$321.60bn in $26.8 billion in 2021,
of 11.73%, resulting in a 2023). [2] has an expected CAGR
market volume of of 10.3% through the
US$743.70m by 2027. next four years. [3]
[1]

Population 97468029 331893745 125681593

Inflation 1.835% 4.698% However, in contrast to

other countries, Japan is
still dealing with
deflation, even though
the Bank of Japan (BOJ)
has lowered interest
rates to very low levels.
Therefore, although the
Japanese market is
always open, foreign
businesses will face
great difficulties in being
taxed.
 -0,233%

Interest and exchange The benchmark interest The Bank of Japan (BoJ)
rates rate in Vietnam was last maintained its key
recorded at 6 percent. short-term interest rate at
source: The State Bank -0.1% and that for
of Vietnam 10-year bond yields
around 0% during its
January meeting by a
unanimous vote.[4]