Vietnam’s largest software maker expands abroad

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fptFPT Corp., Vietnam’s largest publicly traded telecommunications and software company, aims to complete two takeovers this year as it seeks to boost international sales, Chairman Truong Gia Binh said according to a Bloomberg report.

FPT expects the deals to be completed in the second half of 2014 “if everything goes smoothly,” Binh said on April 17 in an interview in Hanoi, where the company is based. One target is in Singapore and the second will be in Europe, said Binh, declining to be more specific. “I would just say the value is not small,” he said.

FPT, whose clients include Microsoft Corp. and Panasonic Corp., is among Vietnamese companies that want to grow abroad as opportunities to boost domestic sales become more limited. Vietnam Dairy Products Joint-Stock Co., or Vinamilk, the nation’s largest dairy producer, plans a global expansion to more than double revenue to $3 billion by 2017.

“We have to boost M&A activity for our global strategy,” Binh said.

The company has almost $189.6 million of surplus cash and plans to spend about $50 million a year for acquisitions in the next three years, Binh said.

FPT Chief Executive Officer Bui Quang Ngoc said in February that the company will spend as much as $20 million on the Singapore acquisition. FPT probably exceeded first-quarter earnings estimates, Binh also said, declining to be more specific. The company will release results in the coming week, he said.

The company’s shares have climbed 48 per cent this year, outperforming the 14 per cent gain in the benchmark VN Index. The company has almost doubled net income over the past five years.

FPT, which had sales of $1.4 billion in 2013, wants to more than triple revenue from overseas to $400 million by the end of 2016, Ngoc said when he became CEO in July 2013.

Ngoc and Binh are the co-founders of 25-year-old FPT, which develops software and provides technology services for its clients. The company wants to increase operations in Japan, the US and Europe to tap demand outside Vietnam, where growth is constrained, Ngoc said. FPT also plans to expand in developing countries such as Myanmar, Cambodia and the Philippines.

FPT, which has more than 17,000 employees, aims to increase revenue by 11 per cent and pretax profit by 6 per cent this year. The company wants to boost sales by an average 15 per cent annually through 2016.

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Reading Time: 2 minutes

FPT Corp., Vietnam’s largest publicly traded telecommunications and software company, aims to complete two takeovers this year as it seeks to boost international sales, Chairman Truong Gia Binh said according to a Bloomberg report.

Reading Time: 2 minutes

fptFPT Corp., Vietnam’s largest publicly traded telecommunications and software company, aims to complete two takeovers this year as it seeks to boost international sales, Chairman Truong Gia Binh said according to a Bloomberg report.

FPT expects the deals to be completed in the second half of 2014 “if everything goes smoothly,” Binh said on April 17 in an interview in Hanoi, where the company is based. One target is in Singapore and the second will be in Europe, said Binh, declining to be more specific. “I would just say the value is not small,” he said.

FPT, whose clients include Microsoft Corp. and Panasonic Corp., is among Vietnamese companies that want to grow abroad as opportunities to boost domestic sales become more limited. Vietnam Dairy Products Joint-Stock Co., or Vinamilk, the nation’s largest dairy producer, plans a global expansion to more than double revenue to $3 billion by 2017.

“We have to boost M&A activity for our global strategy,” Binh said.

The company has almost $189.6 million of surplus cash and plans to spend about $50 million a year for acquisitions in the next three years, Binh said.

FPT Chief Executive Officer Bui Quang Ngoc said in February that the company will spend as much as $20 million on the Singapore acquisition. FPT probably exceeded first-quarter earnings estimates, Binh also said, declining to be more specific. The company will release results in the coming week, he said.

The company’s shares have climbed 48 per cent this year, outperforming the 14 per cent gain in the benchmark VN Index. The company has almost doubled net income over the past five years.

FPT, which had sales of $1.4 billion in 2013, wants to more than triple revenue from overseas to $400 million by the end of 2016, Ngoc said when he became CEO in July 2013.

Ngoc and Binh are the co-founders of 25-year-old FPT, which develops software and provides technology services for its clients. The company wants to increase operations in Japan, the US and Europe to tap demand outside Vietnam, where growth is constrained, Ngoc said. FPT also plans to expand in developing countries such as Myanmar, Cambodia and the Philippines.

FPT, which has more than 17,000 employees, aims to increase revenue by 11 per cent and pretax profit by 6 per cent this year. The company wants to boost sales by an average 15 per cent annually through 2016.

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