FPT, the largest Vietnamese IT group, has just released the Q4 2022 financial report, which showed that it obtained VND13 trillion in revenue, up by 30 percent compared with the same period last year, and VND1.619 trillion in post-tax profit, up by 3.5 percent.

In 2022, FPT had revenue of VND44 trillion, an increase of 25.7 percent, and post-tax profit of VND6.476 trillion, an increase of 21 percent.

The Technology division continued to be the major business field of FPT, making up 58 percent of revenue and 48 percent of pre-tax profit of the group. Of this, revenue from overseas IT services reached VND18 trillion, up by 30.2 percent, and pre-tax profit was VND2.9 trillion, up by 23.3 percent.

High growth rates have been reported in key markets. The North American market, for example, grew by 50 percent, and Asia Pacific 36.4 percent. It obtained a growth rate of 16 percent in Japan, despite the depreciation of the yen.

In 2022, FPT shares soared in April from VND77,000 to VND94,000 per share, staying high amid the downward trend of the market. At the end of 2022, FPT share prices were traded at over VND80,000 per share.

CMC Group has reported net revenue of VND2.302 trillion for Q4, up by 25 percent, and post-tax profit of VND124 billion, up by 4.8 percent. The figures were VND5.832 trillion (+29 percent) and VND305 billion (+13 percent), respectively, for 2022.

According to CMC, the profit increase mostly came from a new project – CMC creative space in HCMC. Meanwhile, strategic business divisions had a high profit growth rate of 14 percent, especially international business which had a profit growth rate of over 50 percent.

CMC share prices did not see considerable increases in late 2022 compared with earlier this year, hovering around VND42,000 per share. The shares once saw prices soar to VND55,000, but later dropped to VND36,000.

JSC for Telecoms and Informatics (ICT) had revenue of VND250 billion in Q4, a decrease of 62 percent, and post-tax profit of VND10 billion, a decrease of 80 percent. 

The accumulated revenue of the company was VND1.291 trillion in 2022, down by 38 percent from 2021, while post-tax profit was VND18 billion, down by 68 percent.

The decreases were attributed to increased sales costs, plus the complicated international situation, including Covid-19 performance, global recession and the Russia-Ukraine war. This caused the global supply chain to become disrupted. As a result, the delivery of imported equipment for projects was late and the company could not order products.

As of the end of 2022, ICT market share prices dropped by 33.3 percent from the April peak. The shares have shown signs of recovery since the beginning of 2023, slightly increasing from VND13,000 per share to VND15,000.

Competitive edge

Rong Viet Securities (VDSC) commented that Vietnam’s IT industry has a competitive edge in terms of Human Resources. The Vietnamese workforce is young and capable of quickly adapting to new technologies.

A report from HSBC showed that the number of computer programmers aged 20-29 accounts for 51 percent of total developers in Vietnam. 

Meanwhile, software development cost of Vietnamese developers was much lower than other countries, just $18 per hour, or 64 percent of Asian countries and 10 percent of the US.

That is why clients from large markets such as the US, Japan, EU and Asia Pacific have chose Vietnam as the ideal destination for cooperation in IT development.

However, in the short term, Rong Viet Securities has warned that macroeconomic upheavals in the world may have negative impact on Vietnam’s tech firms. The Japanese yen is depreciating, and Japan is a major market for many Vietnamese software firms.

Van Anh