FPT Corporation, trading under the ticker FPT on the Ho Chi Minh Stock Exchange, is a leading Vietnamese technology and IT services conglomerate. Founded in 1988, the company operates in three core business areas including technology, telecommunications, and education.
Between 2020 and 2023, FPT enjoyed consistent annual revenue and profit growth of approximately 20 percent. Notably, a significant milestone was achieved in 2023 when IT service revenue from overseas markets surpassed US$1 billion, marking a 28.4 percent increase year-over-year. This was propelled by surging demand for enterprise software development, particularly in Japan—a key market for FPT—and the Asia Pacific region.
This growth coincided with a Japanese government push to encourage the use of more technology by Japanese businesses. Consequently, the company’s stock price surged by 483 percent between June 2020 and its peak in July 2024.
In 2023, the firm significantly expanded its global footprint by becoming a strategic shareholder in Landing AI, a leading US-based computer vision and AI software company. FPT also acquired three technology firms: Cardinal Peak and AOSIS in the US, and Intertec in Latin America.
Additionally, in April 2024, FPT Corporation and Nvidia, the world’s most valuable semiconductor manufacturer, signed a strategic cooperation agreement. This included a US$200 million investment to establish a data centre in Vietnam, dedicated to AI research and development. This collaboration could position FPT for sustained growth in the AI and technology sectors.
While the company’s fundamentals are strong, the current high valuation warrants a cautious approach in the short term. Investors with a long-term horizon may find FPT to be an attractive investment opportunity, but they should carefully consider the potential risks before making a decision.
Disclosure: The author does not have any financial interest in FPT stock.
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