BANKING ACADEMY

International School of Business

Business Administration Faculty
---🕮---

Group Assignment

SWOT ANALYSIS OF FPT

Lecturer : Nguyen Thi Huong Giang

Course : Principle of Management
Group :5
Class : CA10D

Ha Noi, 2022
GROUP 5
 Full Name Student ID Contribution

Nguyen Thi Hoa CA10-112 20%

Nguyen Thi Hau CA10-108 20%

Le Dang Kien CA10-125 20%

Nguyen Thi Huyen Trang CA10-166 20%

Tran Thien Viet Anh CA10-087 20%

TABLE OF CONTENTS
I. Introduction: 1
II. Analyzing and suggestion: 1
A. Overview of FPT: 1
B. SWOT Analysis: 2
1. Strength: 2
1.1. Strong Brand and Broad Presence: 2
1.2. Won many prestigious awards: 3
1.3. High-quality human resources: 3
1.4. Talented Leadership Team: 3
1.5. Government policies: 4
2. Weakness: 5
2.1. Ineffective investment: 5
2.2. Ineffective competition in the telecommunications industry: 6
2.3. Advertising is restricted: 7
3. Opportunity: 7
3.1. Domestic development opportunities: 8
3.2. Opportunities for overseas development: 10
4. Threats: 11
4.1. Challenges of the whole industry: 11
4.2. FPT's own challenges: 16
4.2.1. Financial risk: 16
4.2.2. Challenges in competition: 16
TABLE: SWOT ANALYSIS OF FPT 18
C. Suggestions/Recommendations: 19
1. Strength - Opportunity: 19
2. Strength - Threat: 20
3. Weakness - Opportunity: 20
4. Weakness - Threat: 21
III. Conclusion: 21
REFERENCES 23
 I. Introduction:
In recent times, views related to business development strategies are gaining interest
and concern from many countries around the world.
SWOT is a simple but extremely useful business plan analysis model that is widely
used in business, to bring benefits to businesses as well as maintain sustainable
development of the business environment, bringing maximum benefits to the social
community and stakeholders. But on the other hand, putting these strategies into practice is
not easy, especially for developing countries.
Vietnam is currently on the list of the Top 20 most attractive countries for software
outsourcing and services in the world (Tristian, 2021). But in the context of the current
global economic-financial crisis and the economic downturn, it will take a few more years
to recover, and there are negative impacts on the development of the IT market. In order to
minimize the negative impacts, the Vietnamese IT industry needs to make preparations to
both minimize negative impacts and maintain stable growth. What are the development
scenarios of Vietnam's IT industry in the coming period? These are situations that need to
be planned scientifically and carefully.
Developing a Business Plan is a very complicated matter, requiring taking into
account the internal and external advantages and disadvantages on the basis of the
company's set business strategy so that the company's business activities can be carried out
successfully. The company's business achieved the highest efficiency. In the market
economy, in order to adapt to the ever-changing environment, FPT needs to be able to
cope with any situation to be successful. This requires managers to be aware of changing
trends and find out the key factors that ensure success.
Therefore, the SWOT analysis of the business environment of FPT Corporation is
very necessary; is the foundation for this largest information technology service
corporation in Vietnam to promote its potential, overcome shortcomings, limit threats and
make good use of opportunities in the fields so that those fields future development in
order to develop strategic plans and manage FPT's business in the most appropriate and
effective manner.

II. Analyzing and suggestion:

A. Overview of FPT:
FPT (FPT Corporation), whose full name is FPT Joint Stock Company (formerly
known as Technology Investment and Development Company), the word FPT stands for
the English phrase "Food Processing Technology", is one of the largest information
technology service companies in Vietnam. FPT Corporation operates in three main fields:
Technology, telecommunications and education.

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 According to a public report on FPT Group's website, established on September 13,
1988, the predecessor of FPT Joint Stock Company was established under the name of
Food Company. In March 2002, the company was equitized with the name FPT
Technology Investment Joint Stock Company. The company started listing with the code
FPT on December 13, 2006, on the Ho Chi Minh City Stock Exchange. On December 19,
2008, the company changed to FPT Joint Stock Company (FPT Group).
With the core business of Technology and Telecommunications, FPT currently owns
telecommunications infrastructure covering 63/63 provinces and cities in Vietnam and is
constantly expanding its operations in the global market, with 46 systems. offices in 26
countries around the world. FPT Corporation has 8 subsidiaries and 5 affiliated companies.
With more than 30 years of operation and development, the company has achieved many
outstanding achievements. revenue in 2021 reached VND 35,657 billion. with the total
number of employees of the company currently over 37,100 people. At the same time, FPT
is constantly researching and pioneering new technology trends, integrating with the global
technology trend, contributing to affirming and enhancing FPT's position as a large
corporation, and always putting quality criteria and prestige in each product on top. That
prestige has been proven and demonstrated by FPT's dedication and efforts, and the
company's achievements have received many typical awards in Vietnam and in the world.
At the Asia Outstanding Company Awards 2021 organized by AsiaMoney, FPT is the only
technology company in Vietnam to be honoured.

B. SWOT Analysis:
1. Strength:
FPT Corporation's success is attributable to a variety of causes. In which the most
significant criteria are determined by the group itself. It is important to remember that the
group has amassed a strong brand name, widespread distribution, and significant awards
throughout the years. Aside from the numerous and high-quality personnel, competent top
management is also a critical aspect of the corporation's success. Furthermore, the
government's IT policies contribute to the corporation's growth. Due to these
characteristics, FPT has expanded to become one of Vietnam's most powerful IT
businesses.
1.1. Strong Brand and Broad Presence:
In terms of brand recognition, FPT is one of the strongest brands in the ICT business.
FPT has 34 years of expertise in the field of information technology, having been
established in 1988. Through more than 34 years of experience in the business, FPT is a
leading firm in various fields in Vietnam.
To begin, FPT is a corporation that sells computers made by major manufacturers
such as IBM, Compaq and HP. FPT's initial partner was IBM, followed by Compaq. The
firm has also made important contributions to the growth of telecommunications and

2
Internet services in Vietnam. The corporation is now the leading technology distributor in
Vietnam, representing over 30 major technology corporations through about 1500
distribution agents across the nation. FPT's network of activity extends beyond the
country's borders, spanning over 26 nations and territories.
Second, the firm is the largest software exporter in Vietnam and is ranked among the
top 100 Global Outsourcing companies by IAOP.
Furthermore, FPT was the first firm to launch VNExpress, Vietnam's first newspaper
to publish stories online and it is also the newspaper with the most readers in the country.
Moreover, FPT is a pioneer in the sphere of e-commerce in Vietnam. Sendo has used
the "business to business to consumer" (B2B2C) strategy since 2012. Sendo is a trade and
investment platform that connects providers of logistics services with banks, allowing
service consumers to take advantage of the entire spectrum of advantages.
1.2. Won many prestigious awards:
Additionally, the firm has received several significant prizes and certifications in the
country and throughout the world during its existence. FPT has gained ISO 9001:1994
certification and has been given CMM 5 (Capabilities Maturity Model) by the American
Software Institute (SEI), which is the highest degree of assessment of a developing
company's manufacturing process capability. Domestically, the group has been awarded
the Vietnam Gold Star Award by the Investment journal. The firm has also garnered
several international honours, including Best Data Service Provider in Vietnam from
W.Media Asia Pacific. Furthermore, it got gold and silver medals at the Stevie Awards
2020 Asia Pacific region, Best Management Company in Vietnam selected by Global
Capital - Asiamoney, and was named one of the Top 50 leading brands in Vietnam by
Forbes magazine.
1.3. High-quality human resources:
FPT Corporation has a substantial human resource base derived from the
corporation's educational establishments. FPT will have a team of competent employees
and experts, as FPT University and FPT Aptech Facility - the first international training
centre in Vietnam in the field of IT - have been teaching students in the field of
information technology.
1.4. Talented Leadership Team:
FPT was founded by 13 young scientists with a strong desire to bring progress to the
country. It is this devotion that has allowed the company to grow so rapidly. Currently,
there are 3 people who are still holding the position of Board of Directors members of the
group: Mr. Truong Gia Binh, Mr. Bui Quang Ngoc and Mr. Do Cao Bao, along with Mr.
Hoang Nam Tien, who is currently Chairman of the Board of Directors of
Telecommunication Joint Stock Company. Mr. Truong Gia Binh is the founder and has
been building FPT since it was a concept. He is regarded as FPT's soul, with exceptional
organizational skills and insight, and the ambition to create FPT a major technology

3
business around the globe. Mr. Bui Quang Ngoc, Vice Chairman of the Board of Directors,
is the person responsible for implementing current technology in FPT. Mr. Do Cao Bao
comes next, who has made several contributions to the group's information system. Those
forerunners helped FPT grow into a big domestic and worldwide IT firm.
1.5. Government policies:
The government also plays an essential role in the development of information
technology in general, and FPT Corporation in particular.
For a long time, the Vietnamese government has prioritized IT growth and the
application of science and technology to manufacturing, including electronics and
informatics. Today, in the 4.0 era of science and technology, it is critical to growing the
country in accordance with the IT trend in order to avoid falling behind, according to Mr.
Nguyen Manh Hung (Phuong, 2021). As a result, the government has developed measures
to encourage the growth of the IT industry. The organizers of the Vietnam ICT Summit
2012 underlined the need of developing infrastructure to support IT growth (Tuyen, 2019).
From 2021 through 2030, the government has a long-term strategy for national digital
transformation, with national digital transformation as the ultimate aim. To that end, the
government promotes the growth of IT businesses such as electronics and
telecommunications (Phuong, 2021).
These regulations have aided the development of Vietnam's IT and telecom
industries. Vietnam is one of the nations in the world with the quickest development in the
telecommunications and internet sectors. This is demonstrated by the fact that the growth
rate of mobile communication in Vietnam is over 60% per year, whereas the global growth
rate is approximately 35%. The Internet has also grown significantly in Vietnam; from
2004 to 2005, the number of Internet users grew 1.6 times, as did the availability of
Internet services. As a result, Vietnam represents a prospective market for the
telecommunications sector. Knowing this, FPT Corporation, more especially FPT IS, has
created several telecommunications systems, most notably FPT.BCCS (Software system
for billing and customer care). This technology represents a significant advancement in
Vietnam's telecommunications industry (Nguyen, 2012). FPT.ePOS (Multi-service
centralized sales and marketing management system for telecommunications service
companies), FPT.TDW (Data warehouse system for telecom service providers), FPT.IRBS
(International roaming billing system), FPT.ICBS (Bill checking system),
FPT.HLR/INGATEWAY (Communication gateway system for telecommunications
switchboards) are also available (Nguyen, 2012).
Individuals, corporations, and governmental organizations are all undergoing digital
transformations of their information systems (Phuong, 2021). FPT Information System
Joint Stock Company is a company that has worked hard to develop information systems
for the government, including the Tax Management System, which is an essential system
in the tax sector (Nguyen, 2012).

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 2. Weakness:
2.1. Ineffective investment:
Besides strengths, FPT also has weaknesses that need to be overcome. The fact that
FPT invests inefficiently, widely, and irrationally is one of its shortcomings. The FPT
Corporation has launched two primary business areas, including technology and
telecommunications according to the company's official website. But as science and
technology have advanced, new trends in technology have emerged. FPT Corporation has
taken advantage of these chances to invest in digital transformation and introduce new
technologies like big data and AI. Smart solutions in industries including smart health,
smart transportation, and digital government frequently use FPT IS, a data warehouse
platform, to assist the healthcare sector in undergoing a thorough digital transformation.
Besides that, FPT Corporation is expanding into a variety of fields such as finance,
banking, and property investment. As a result, FPT's diversification into others outside of
its core business reduces the competitiveness of important industries, disperses resources,
and renders the core business line unstable. It is predicted that especially financing into too
many initiatives, those in the banking and sectors will be high-risk and have an impact on
the company's entire strategy going forward An illustration of such a wasteful investment.
FPT invested 1,190 billion VND in two key investment projects in 2011. The first is a
project to develop cloud computing in partnership with Microsoft; the second is a project
to purchase a 44% stake in EVN Telecom to strengthen FPT's internet infrastructure and
widen the gateway to the mobile market supported by 3G networks. These investments are
invested by money from investments in these entities. Unfortunately, the following
endeavours were a failure. As a result, from 2002 to 2010, FPT's cash flow for investments
(CFI) was constantly negative (Phuong & Le, 2012).

5
 In 2020, amounting to VND 2,235 billion, or 6.3% of the group's overall revenue,
FPT's profit from other investment sectors like online advertising or education. This
amount is 52.8% and 35.5%, respectively, of revenue from the technology and
telecommunications sectors.
Therefore, when FPT Corporation makes investments in various industries like
banking, media, and education, the majority of these segments have not yet generated
profits or given FPT a competitive advantage over the public sector. communications
technology or information technology. Due to this, FPT makes ineffective investments.
2.2. Ineffective competition in the telecommunications industry:

The three giants, FPT Telecom, Viettel Telecom, and VNPT, control more than 95%
of the domestic market share in the telecommunications sector, which superior offers
internet services; with a 14%, 38%, and 40 % share of the internet market, respectively. In
this case, Viettel is a strong rival, eventually overtaking VNPT.
First off, when it comes to telecommunications infrastructure, FPT Corporation only
concentrates on major cities like Hanoi and Ho Chi Minh City rather than trying to
increase its market share. Unmet needs result from this. Rural customers are unable to
register for the installation of an FTP network due to the lack of broadcasting stations in
those areas and the high demand for such services. The second concerns the fact that FPT
costs more than other carriers like VNPT or Viettel. The price differences between the
FPT, Viettel, and VNPT network operators when looking at the table. Looking at the table
below, where the 500Mpbs speed of the FPT network operator is 31 VND higher than that
of the VNPT, provides a clear illustration. Despite being stable, the transmission speed is
not as good as Viettel's.

6
 Finally, customers' needs have not been met by the company's services. Customers
of FPT typically do not receive the same services as advertised because the bandwidth of
international transmission lines is optimized to the fullest extent possible (FPT's business
strategy: Vietnam's leading brand, 2021).
2.3. Advertising is restricted:
The market position of FPT Corporation has improved overall thanks to its
marketing initiatives, but there are still some limitations. It is the company's current
advertising, which does not specifically highlight a product but speaks in general terms
about the company's name and line of business. Consumption-stimulating activities don't
actually motivate customers to use the company's products and services in the way that it
intended - in a very professional manner. The group's primary focus is conventional
advertising, including banners and slogans displayed where there are more officials to raise
awareness. Additionally, the corporation doesn't really have a defined budget for its
marketing initiatives and instead mainly spends money on a case-by-case basis. (Pham,
2020).

3. Opportunity:
Despite some of the aforementioned drawbacks, FPT Corporation continues to be a
sizable and powerful company in industries such as business, education, and
telecommunications. Particularly in the IT sector, which is expanding in the era of Industry
4.0 and will constantly require human resources in the future (Karn, 2022). This is the
market that FPT businesses promote and concentrate on the most because this is the
market that brings this company many prestigious awards and huge sources of income.
It can be claimed that FPT Corporation has had a prosperous year in 2021. As one of
Vietnam's major information technology service providers, FPT has made significant gains
on all "fronts" (Ha, 2022). This is demonstrated through FPT's outstanding financial
performance, overcoming the challenge of the Covid-19 epidemic causing many
difficulties in most markets, to achieve an exceptional growth rate of more than 20%
compared to the prior year (Ha, 2022).

7
 Source: FPT - the bravery to overcome challenges, 2022
According to FPT's annual report in 2021, FPT has achieved VND 84.395 billion (as
of December 31, 2021) and total revenue reached VND 35,657 billion, 19.5% more than
the same period last year (FPT Annual Report, 2021). Also in 2021, FPT won many
awards, of which at Asia's Outstanding Companies Poll 2022 award ceremony organized
by AsiaMoney magazine; FPT is the only technology company to be honoured as the most
outstanding company in Asia in both categories by market and by field of operation; this is
also the second time in a row that the company has been honoured by AsiaMoney
magazine (Tam, 2022). Furthermore, FPT has received several honours both domestically
and internationally, including the best place to work in IT / Software and Applications / E-
commerce and the finest place to work in Asia, Top 5 best corporate governance, premier
data centre service provider in Vietnam, and several other honours (FPT Annual Report,
2021).
The data above illustrate that FPT is a vast and powerful firm in the Vietnamese
market. FPT has built and organized many subsidiaries based on their strengths and
popularity: for the information technology market, there are FPT Digital, FPT Software,
and FPT Information System; for the telecommunications market, there is FPT Telecom;
and for the education sector, there is FPT Education. Although FPT has several market
shares in other industries, the Information Technology industry remains FPT's most vital
point, accounting for 57-58% of revenue and 44-45% of the profit for FPT corporation
(Điển, 2022).
With the advantages and strengths at its disposal, FPT Corporation has several
potentials to expand both in Vietnam's market and overseas markets in the future.
3.1. Domestic development opportunities:
In the era of industrial revolution 4.0 - the Industrial Internet of Things (IIoT) era,
industrialized nations throughout the world are focusing on automation, the creation of
intelligent machines, and artificial intelligence for the advancements of science,
technology, and the economy (Industry 4.0 - The fourth industrial revolution is underway,
2022). Not surprisingly, the Information Technology industry in Vietnam has become one

8
of the "key" and vital industries for the growth of the economy and the advancement of
Vietnam in Science and Technology, beginning to keep pace with international technical
levels (Hoa, 2017).
Firstly, as a pioneer corporation in the field of Information Technology, FPT has
become one of the companies honoured by the government as the leading enterprise in the
field of Information Technology in 2022 (FPT dung trong Top 10 Doanh nghiep CNTT
Viet Nam nam 2022 cua 8 linh vuc, 2022). The state government has a master plan to
make Vietnam an advanced country in information technology, specifically in June 2020,
the Prime Minister of Vietnam, Mr. Nguyen Xuan Phuc issued Decision No. 749/QD-TTg
in approving the National Digital Transformation Program to 2025, orientation to 2030.
This has the potential to promote the development of the information technology industry
and its application in areas such as education and business. These benefits indirectly help
FPT have the opportunity to develop in more fields.
Secondly, because of the optimization and convenience of today's advanced
technologies, new technologies have been widely applied in many areas of society, most
obviously in the medical field and education. For the health sector, the past year has been
most evident through checking the number of vaccines a person has received through the
phone application and the website of the Ministry of Health, all done online. In addition,
the Department of Health has issued Official Letter No. 9372 on promoting the application
of Information Technology in hospital management activities, towards building a smart
hospital. For the education sector, it is most obvious that during the Covid-19 pandemic,
technology has been applied by creating E-Learning software to help learn online, making
it convenient for both teachers and students in teaching and learning. FPT enterprises can
rely on this to develop more software to support users in both the fields of health and
education.
Thirdly, the year 2021 represents the global development and expansion of 5G
networks, which is currently ongoing. Mobile devices, computers, and especially
smartphones will become more contemporary as new technology become available. This
can assist FPT in increasing revenue and attracting new consumers by providing
telecommunications and television services.
Fourthly, the typical demand for computers, personal laptops, and Internet
connections is increasing. According to data, the size of the domestic market for laptop
and notebook computers is presently over VND 10,000 billion (An, 2021). Companies
such as FPT might enhance sales growth in the nation thanks to the premium approach of
manufacturers. Furthermore, as people's desire for pleasure and online work grows, so
does the need for Internet use and Wifi connection. FPT may rely on user needs to deliver
suitable network bundles and services, improving revenues. If used properly, FPT may
compete with major telecommunications companies such as Viettel or VNPT.

9
 Finally, the Information Technology industry up to now is still an industry with very
clear growth momentum. This industry has contributed to 14.3% of Vietnam's GDP and is
28 times higher than in 2000, and the number of employees in the Information Technology
industry is currently estimated at 1,030,000 people, accounting for 1.88% of the total
number of employees; compared to 2000, this number has increased 20 times (How is the
development of the Information Technology industry in Vietnam?, 2022). According to
Nguoi Lao Dong newspaper, the Information Technology industry is always at the top of
the professions that are predicted to be scarce in human resources until 2025 (Nam, 2022).
Therefore, businesses related to or operating in the technology field like FPT will have
more opportunities to develop widely.
To sum up, technology-related firms now have a lot of prospects for growth and
expansion in the local market. Not just the government's assistance and trust, but also the
trust of the people in the country.
3.2. Opportunities for overseas development:
Firstly, Vietnam is in the top 10 most attractive countries for software outsourcing,
the number 1 preferred partner and also the 2nd largest offshore partner of Japan (Nga,
2022). This shows that Vietnam has always been a country of great interest to international
companies, especially in the field of Information Technology. Companies and enterprises
operating in this field in Viet Nam have the opportunity to be noticed and cooperated with
foreign companies, expanding the relationship between the two countries; in addition,
there are opportunities to expand the company's branches abroad. FPT has been present in
18 countries including Vietnam, Laos, Cambodia, USA, Japan, Singapore, Germany,
Myanmar, France, Malaysia, Australia, Thailand, UK, Philippines, Kuwait, Bangladesh,
Netherlands and Indonesia; FPT is also the first Vietnamese enterprise in the field of
Information Technology to establish a company with 100% capital in the US and
Myanmar (Mẫn, 2014).
Secondly, Vietnam's entry into the international market can help domestic industries
and companies get more attention and increase development opportunities in foreign
markets. Specifically, Vietnam joined the international market WTO - The World Trade
Organization in November 2006 and is the 150th member of this world's largest trade
organization. This has partly confirmed Vietnam's position in the international market.
Thirdly, currently, there are many Vietnamese companies that are partners of many
leading technology companies in the world such as Microsoft, Hitachi, Toshiba, Amazon,
HP, Nokia and many more. This can help businesses related to IT such as FPT have the
opportunity to penetrate the international market through these big companies.
In summary, the international market is always a potential market for domestic
companies that want to develop abroad such as FPT and will be a long-term growth engine
for these companies. Vietnamese companies have gained a lot of interest from foreign

10
partners, which can promote the opportunity to put Vietnam on par with other countries in
the world in terms of science, technology and technology.

4. Threats:
4.1. Challenges of the whole industry:
Overview of the macroeconomic situation:
As of September 2022, the global economy 2022 is adjusted down compared to
previous forecasts. The World Bank forecasts that global growth in 2022 will decrease
significantly, from 4.1% in forecast at the beginning of 2022 to 2.8% in the forecast for
August 2022. Fitch Ratings has cut its forecast for world GDP growth in 2022 to just
2.4%, down 0.5 percentage points from its forecast for June 2022. The International
Monetary Fund's World Economic Outlook report for July 2022 stated that global growth
in 2022 will reach 3.2%, 0.4 percentage points lower than the forecast in April 2022. The
Organization for Economic Cooperation and Development forecasts world growth in 2022
to reach 3%, unchanged from the forecast made in June 2022. The Asian Development
Bank (ADB)'s September 2022 Economic Development Outlook Update Report sharply
revised the economic growth forecast of some major economies compared to the forecast
made in April. In 2022, it is specifically forecasted that the GDP growth of the United
States will decrease from 3.9% to 1.6%, the euro area will decrease from 3.3% to 2.5%,
and Japan will decrease from 2.7%. to 1.4%, and China from 5.0% to 3.3%. In Southeast
Asia, ADB forecasts that Indonesia's 2022 growth will reach 5.4% (an increase of 0.4
percentage points compared to the forecast in April 2022), Philippines- Lipin reached
6.5% (up 0.5 percentage points), Thailand reached 2.9% (down 0.1 percentage points),
Singapore reached 3.7% (down 0.6 percentage points). percentage points), Malaysia
reached 6.0% (same).
The World Bank and IMF forecast Vietnam's economic growth in 2022 at 7.5% and
7% respectively. ADB kept unchanged at 6.5% compared to the forecast made in April
2022.
Prices and inflation rise:
According to the World Bank, supply shocks have caused sharp fluctuations in the
global energy market. The conflict in Ukraine significantly disrupted the trade and
production of energy commodities. In response to the war, several countries, including the
United States, United Kingdom and Canada, have announced bans on Russian oil, while
the European Union plans to ban crude oil and natural gas. Russian refined materials by
2023. Russia retaliated by cutting natural gas exports directly to several European
countries. These disruptions have exacerbated existing tensions in energy markets,
particularly in Europe. The reason is, Russia is the world's largest exporter of natural gas
and accounts for a significant portion of global coal and crude oil exports. The current
energy shock will have significant consequences for global growth.

11
 According to the World Bank, the commodity market continues to fluctuate. Brent
crude oil prices averaged $120/bbl in June before falling below $100/bbl in mid-July 2022,
mainly due to slowing global economic activity. European natural gas prices rose 15% in
June (month-on-month) and continued to rise in July as Russia cut gas exports to Europe.
Meanwhile, EU imports of liquefied natural gas from the United States have increased
sharply in 2022, partially offsetting the decline in imports from Russia as a result of war-
related sanctions in the United States.
Metal prices have fallen sharply amid concerns about falling Chinese demand and
weak global growth.
The food and food price index of the Food and Agriculture Organization of the
United Nations (FFPI) reached 138.0 points in August 2022, down 2.7 points (1.9%)
compared to July 2022. Despite the decrease, this index is still 10.1 points (7.9%) higher
than in the same period last year. All five FFPI sub-indexes are down slightly in August
2022. The IMF believes that global food and food prices have stabilized in recent months
but are still much higher than in 2021. The main cause of global food price inflation,
especially cereal prices, is the impact of the conflict in Ukraine and export restrictions in
some countries. Low-income countries, where food accounts for a larger share of
consumption, are clearly feeling the impact of food price inflation.
According to the IMF, the increase in global inflation is partly due to rising food and
energy prices. Inflation in 2022 is forecast to increase by 6.6% in developed economies
and 9.5% in emerging markets and developing economies, increasing by 0.9 and 0.8
points, respectively and is expected to rise even higher.
Global financial conditions tend to tighten:
According to the World Bank, global financial conditions are worsening, reflecting
the tightening monetary policy worldwide and increasing risk aversion. In developed
economies, government bond yields are volatile. In mid-June 2022, the 10-year US and
German bond yields spiked to around 3.5% and 1.75%, respectively, but then fell back
sharply amid concerns about economic activity. weakening the global economy. Global
stock prices fell in June 2022 but have since stabilized somewhat. The US dollar
strengthened against the currencies of developing and emerging market economies.
Tighter financial conditions have caused debt distress in emerging markets and
developing economies, according to the IMF. In advanced economies, with central banks
raising interest rates to combat inflation, financial conditions around the world will
continue to tighten. Rising borrowing costs will put pressure on international reserves,
hurting economies with net dollar debt. Such challenges will come at a time when the
fiscal position of governments in many countries has been affected by the Covid-19
pandemic, which means less room for fiscal policy support.
According to the OECD, inflation moving above target prompted central banks to
react more aggressively, leading to the tightening of financial conditions. Stock markets in

12
many parts of the world fell sharply, nominal bond yields rose, and the US dollar
appreciated significantly. Spreads on corporate bonds increased, particularly in Europe.
Capital outflows from developing economies and emerging markets increased. Higher
interest rates are also dampening momentum in the housing market. Sales, mortgages and
home purchases have plummeted in many countries.
Some risk factors affecting the world economic outlook:
The IMF assesses the global growth outlook with great risks of slowing economic
growth. The main risks are:
First, the conflict in Ukraine raises energy prices. A complete cessation of Russian
gas exports to the European economies by 2022 would significantly increase inflation
worldwide due to higher energy prices. In Europe, energy allocation could be forced,
affecting key industrial sectors and sharply reducing growth in the euro area in 2022.
Second, inflation remains high. Several factors can cause inflation to maintain its
upward momentum in the long term. Supply-related shocks to food and energy prices from
the Ukraine conflict could sharply increase inflation and impact core inflation, leading to a
tightening of monetary policy. worse. The major central banks have responded to high
inflation by raising interest rates, but it is difficult to pinpoint exactly how much policy
tightening is needed to reduce inflation without triggering a recession. Rising food and
energy prices cause widespread hardship, hunger and instability, threatening not only
economic growth but also social stability in many countries.
Third, tighter financial conditions cause debt distress in emerging markets and
developing economies. As central banks in advanced economies raise interest rates to
combat inflation, financial conditions around the world will continue to tighten. Rising
borrowing costs, in the absence of corresponding domestic monetary policies, will put
pressure on international reserves, causing valuation damage among economies with net
dollar debt.
Fourth, China's growth slowdown will continue to affect other economies.
Fifth, the world economy is divided into many different groups. Over the medium term,
the conflict in Ukraine will divide the world economy into geopolitical blocs with distinct
technological standards, cross-border payment systems, and reserve currencies.
Impact on FPT
FPT Software is currently operating mainly in 2 foreign countries: USA and Japan.

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For the US market, economic agencies have lowered their growth prospects:

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 In 2021, up to 30% of FPT's foreign revenue will come from the US, and the FED is
sending a message that they will base their profits. High productivity means the US
economy slows down, people's consumer demand decreases and the activities of many
businesses also shrink, with the role of outsourcing, consulting and software support units,
FPT Software's orders are at risk of decline.
As for the Japanese market, the economic situation in this country has shown signs
of increasing again in recent quarters.

According to ADB, Japan's economy in the second quarter grew by 2.2%, the third
consecutive quarter of positive growth. Spending on consumer services rebounded strongly
after Covid-19 travel restrictions were lifted at the end of March. Increased spending on
consumer goods and services, travel and dining helped boost growth recovered in the
second quarter. Exports in the second quarter increased moderately. Consumer price
inflation from April to June reached over 2.0% over the same period last year. The upward
pressure on prices was mainly due to higher import prices caused by the war in Ukraine
and the devaluation of the yen against the US dollar due to the widening interest rate
differential between Japan and the US. Although inflation in Japan is still much lower than
in other countries, this is the first time in nearly 14 years that Japanese inflation has
increased by at least 2%.
In general, the Japanese economy has shown positive signs, but risks remain: the
impact of the global recession, and the number of Covid cases is showing signs of
increasing again.
Japan is the second largest market in FPT's operating structure, accounting for 44%
of total foreign revenue, so the above signals are a challenge for the company.
To summarize:

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 In short, with high inflation in the world, the FED, along with the Central Banks of
many other countries, is expected to push up interest rates, tighten the economy and push
back inflation. And in fact, the Fed has increased interest rates by 4-4.5% since March, and
Vietnam has also recently increased interest rates by 2% in the interbank market in the past
2-3 months. . Although the central bank increased with such magnitude and speed mainly
to solve the problem of the exchange rate, not inflation, the impact of monetary policy on
domestic enterprises is inevitable. Although this policy has not had an immediate impact
yet, within the next 1 year to 18 months, the burden of interest rates will gradually be
absorbed into the economy, which will be the time when the real challenge for the
economy will be. enterprise. According to forecasts, the Fed will continue to raise interest
rates until the end of 2023, or at least until the indicators show that the US economy has
entered a recession, but they also forecast that the rate of increase will slow down. more
sentences. And of course, as an emerging market, it is highly expected that the Central
Bank of Vietnam will raise interest rates in the near future.

4.2. FPT's own challenges

4.2.1. Financial risk:
Exchange rate: For an enterprise with up to 40% of its revenue coming from the
abroad market, the current complicated exchange rate fluctuation issue will be a risk to the
company's net profit margin. .
Interest rate: From the second quarter to the third quarter of 2022, FPT withdrew
deposits with original terms of no more than 3 months at banks to pay 400 billion short-
term debts. This is a move that shows that FPT is trying to reduce the size of its assets and
debts. This can be explained as follows: When old debts come to maturity, if in a cheaper
interest rate environment, FPT can conduct debt reversal, but in a current high-interest rate
environment, FPT decided to downsize in the short term, that is, to pay off debt obligations
entirely with the company's cash without reversing the debt to avoid future high-interest
loans.
4.2.2. Challenges in competition:
We will look at two key areas of FPT, which are information technology and
telecommunications:
Information technology:
● Vietnam is considered an emerging star in the field of outsourcing compared to the
two current giants, China and India.
● In comparison with TCS - a big tech firm in India: in 2021, FPT's revenue from
abroad is 13k billion, and TCS in the US market alone is 303k billion. In 2022, all Indian
tech firms contribute nearly $200 billion to the US economy. And in just the first 7 months
of 2020, major technology companies in the US have invested about 17 billion USD in the
Indian tech industry. This shows the position and priority of the USA for Indian tech firms.

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 ● Besides India, the big rival FPT also needs to pay attention to Chinese technology
companies, including two giants, Alibaba and Tencent. With the dream of "Made in China
2025", China focuses on investing in technology sectors including information technology,
telecommunications and AI - all of which FPT is operating. Over 7 years after the "Made
in China 2025" plan was set out, this country has achieved many achievements:
According to statistics from the Ministry of Science and Technology of China
(August 2020), since China implements the "Made in China 2025" plan, its enterprises
have enhanced their international role and position. Xiaomi Group was established in
2010, but by 2019 has become the world's fourth largest smartphone manufacturer, with
125 million units (after Samsung, Nokia and Huawei); Alibaba Group was established in
1999, and by 2019 it has become the "domestic king" of digital payment technology and
one of the world's top three smart application network manufacturers (along with Google
and Facebook of China). America); Huawei Corporation was founded in 1987, and by
2020 has become the number one supplier of telecommunications equipment in the world,
accounting for 28% of the global market share and surpassing Apple to become a major
manufacturer of low-cost, smartphones. ranked first in the world in 2019, with total
revenue reaching 855 billion yuan (equivalent to 124 billion USD in 2019 and 85 billion
USD in the first eight months of 2020); Bytedance Group, whose spearhead is the social
network Tiktok, has attracted 2.2 billion followers around the world, including 165 million
Americans, with revenue reaching $ 45 billion (in 2019).
Telecommunications - Digital Content:
● Along with Viettel and VNPT, FPT is one of the largest telecommunications
distributors in Vietnam
● Looking at the revenue structure of 2021, it is easy to see the majority of FPT's
revenue still relies on telecommunications with more than 35% but this is a gradually
saturated field. The number of people accessing the Internet is increasing by more than
70%, proving that FPT's growth potential in bandwidth provision is limited. According to
the 2019 summary report and the 2020 mission orientation of the Ministry of Information
and Communications, in 2019, mobile service revenue of mobile operators still relies
mainly on traditional types of services, especially voice, and SMS (76.6%) while these
services are already in a state of saturation. Therefore, FPT's challenge is to expand the
digital content array to include products such as FPT Play, which is to provide products for
Internet users: entertainment, events, and work, In 2021, revenue from the digital content
segment is 608 billion, accounting for only 5% of telecommunications revenue.

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 In the future, one of the corporation's big goals is to expand the digital content array.
Not only for FPT but for any big telecommunications company like Viettel or VNPT, this
is always a big challenge because it requires creativity and flexibility to meet market
demand.

TABLE: SWOT ANALYSIS OF FPT

STRENGTH WEAKNESS

1.Strong brand and wide presence 1. Inefficient investment

- Leading in many fields: computer - Investment spread in many different fields
distribution, software export, e-commerce, - Reduced competition in core areas
and electronic newspaper. 2. Poor competition in telecommunications
2. High-quality human resources: - Other centralized branches in big cities
- Human resources from FPT Education's - Higher rates than other carriers
educational institutions 3. Limitations in advertising
3. The talented leadership team has helped - Ads have not yet included specific ads for
the corporation put its name among the each item
leading technology companies in Vietnam - Mainly focus on traditional advertising
4. Government's policy to support the
development of the IT industry

OPPORTUNITY THREAT

1. Domestic development opportunities: 1. General challenges of the whole industry

- The government's master plan is to make - Economic recession: inflation will
Vietnam an advanced country in IT. increase, interest rates will increase, and the

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 - IT is more widely applied, especially in the global and Vietnamese economies will
fields of health and education. tighten in the near future, so domestic and
- With the explosion of 5G networks foreign trade activities will decline.
globally, technology devices are increasingly 2. FPT's own challenges
popular. - Financial risks: exchange rates and
- Demand for personal computers and the interest rates
Internet are both increasing, which can + Exchange rate: the value of the US
compete in the telecommunications industry. dollar (DXY) has increased sharply in
- The IT industry is always an industry that recent months, putting pressure on profits
needs human resources in the future. from overseas, mainly the US and Japanese
2. Opportunities for development abroad: markets of FPT.
- Vietnam is one of the most attractive + Interest rates: High-interest rates affect
countries in terms of software outsourcing the company's borrowing costs.
and services. - Challenges in competition:
- Vietnam's accession to the WTO opens up + Technology block: competition comes
new opportunities for companies to penetrate from two main rivals, India and China.
foreign markets. + Telecommunications sector: challenges
- Vietnam is a partner of many famous in developing and expanding the digital
technology companies in the world such as content array.
Microsoft, HP, Hitachi, Amazon, etc.

C. Suggestions/Recommendations:
1. Strength - Opportunity:
● For the strength of the brand, wide presence and investment policies for IT industry
development:
With the development of the current digital era, the application of Advanced
technologies into areas of society such as health and education are essential. FPT
Corporation, with the strength of its spread across many industries, is linked with domestic
and foreign companies that can invest in the development of software to manage health
and education systems. Thanks to its strong brand name and multi-industry, FPT
Corporation is able to develop technology equipment and 5G networks nationwide. Make
our country quickly become a digital nation.
● For the strength of quality and abundant human resources:
Currently, FPT Education is developing very well with many typical educational
institutions, the most typical being FPT University and FPT Aptech Center. Those
institutions are all reputable and international-standard IT education institutions, so they
will train high-quality staff to serve the development of the IT industry in the future.

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 In addition, the abundant and quality workforce will also attract many countries and
companies to invest in Vietnam in general and in FPT Corporation in particular.

2. Strength - Threat:
● For the problem of expanding the digital content segment:
With the strength of young human resources, especially young highly specialized
human resources from the education sector itself: FPT University, the company can focus
on training future engineers and experts to take advantage of the creativity and dynamism
of this generation to come up with new ideas in digital content.
Take advantage of the company's long-standing and large-scale brand strength in the
market to conduct consumer surveys and research.
Using the brand to enhance marketing so that more customers know about the
company's products
● For international market penetration:
To compare with other competitors, FPT's biggest strength is cheaper labour cost
thereby providing products and services at more favourable prices to expand the network
of foreign customers.
However, the prerequisite still is the quality of products and services, specifically
here is the capacity in consulting and designing software and technology systems. FPT
needs to use profits to invest in research and development activities, and at the same time
attract more experts in the field.
After two years of the pandemic, information technology or more specifically,
argument shifting is one of the areas of interest to the state. FPT needs to take advantage of
this opportunity to raise more capital and develop marketing activities to expand digital
transformation activities in both b2b and b2c blocks.

3. Weakness - Opportunity:
● For inefficient investment:
FPT's current business expansion into many fields such as banking, finance or
education reduces the competitiveness of the key IT industry. In addition, it also causes
businesses to suffer disperse resources and makes the core business more unstable if not
managed properly.
If FPT enterprises can overcome this limitation or come up with more optimal
solutions in balancing and strictly managing non-key areas, FPT may have more domestic
opportunities. When FPT focuses on IT, it will help the company develop more smoothly
because this has been part of the government's plan to turn Vietnam into an advanced
country in IT and science.
● Regarding poor competition in telecommunications:

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 Currently, in the telecommunications field, there are 3 big companies accounting for
95% of the domestic market share, of which VNPT accounts for the most with 40%. This
happens because FPT Telecom is a new company compared to the other two giants and
FPT usually only focuses on building branches in big cities. In addition, providing Internet
services to users with high package costs is also a limitation of this company.
If FPT can overcome this problem by expanding more Telecom branches in
suburban and rural areas, many people can use the packages and experience that service in
the best way. In addition, FPT should find ways to overcome and offer solutions such as
promotions to reduce the price of Internet packages, which will attract more people. When
FPT can overcome these limitations, FPT will have more opportunities to compete and
approach the needs of users.

4. Weakness - Threat:
● Regarding investment and the global economic downturn:
FPT Corporation should focus on key resources such as information technology and
telecommunications. Besides, FPT should divest from non-profitable businesses and
industries, focusing on developing key industries. This can help FPT focus on exploiting
its potential competitive advantages.
Cut down on inefficient products, and focus on researching and developing products
in key industries that are suitable for real needs.
● With poor competition in telecommunications and many competitors:
FPT should approach and expand the telecommunications network and at the same
time invest and upgrade telecommunications infrastructure in big cities to keep and
increase brand recognition, thereby increasing competitive pressure on other competitors
Research and develop telecommunications products suitable to consumers' needs,
improve product quality for customers, increase customer satisfaction when using FPT's
products. Thereby making a difference In addition, the group should increase investment
abroad to expand cooperation with other countries.
● For advertising and many competitors:
Product, and promotion strategies to bring products to market. When products reach
consumers, in addition to traditional ways such as banners, .., the use of social networks
growing like TikTok, and Facebook to promote very necessary products. With a survey in
2021 in Vietnam, 73% of Vietnamese people use social networks every day. By running
ads on these platforms to reach closer to consumers, FPT can build strategic, special
content that can make a difference from other companies

III. Conclusion:
In summary, we anticipate that the project's findings will contribute to a broader
knowledge of the perspectives related to the business development strategies of FPT

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Group according to the SWOT model. The purpose of the model is to identify the
strengths, weaknesses, opportunities, and threats of FPT Corporation, thereby bringing
benefits to businesses as well as maintaining the sustainable development of the corporate
environment.
The project, through identifying Strengths factors to continue to promote, includes a
strong brand and wide presence, high-quality human resources, a talented leadership team
and government policies supporting the IT industry. Besides, find out the remaining
Weaknesses such as inefficient investment, poor telecommunications competition, and
limited advertising; and determine how the FPT group can improve these weaknesses and
make efforts to change for the better. Moreover, the SWOT analysis model also helps the
FPT group research many opportunities for domestic as well as overseas development.
Finally, FPT Corporation can be aware of the threats to prepare a plan to face them, as well
as take measures to deal with them, as FPT faces the common challenge of the entire
economic sector, there are still risks associated with it. high financial risk; FPT in the field
of telecommunications still has many challenges in developing and expanding the digital
content segment. However, related to these four categories in the operation of the FPT
group, there are still many issues that need to be further studied. In the short time available
and with limited knowledge, the author's team could not solve all the related issues,
inevitably leading the shortcomings in the process of implementing the thesis. Therefore,
we look forward to receiving your comments and guidance to complete this thesis.

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