Vietnam's FPT expands services in Japanese market

By Thanh Nga, An Hong   May 30, 2016 | 04:02 pm GMT+7

FPT Corp, Vietnam’s leading information technology company, is breaking into the Japanese market at speed after signing more cooperation agreements with local businesses on Thursday.

FPT mainly focuses on the telecoms, software and technology sectors, and said it will provide software outsourcing services for Toppan Printing, with plans to expand the deal to other Southeast Asian markets.

Toppan Printing is in the commercial printing business. The company has diversified into areas such as semiconductors and LCD panels. It has also managed to increase its profits from digital-related businesses such as e-books and digital advertising. Toppan saw a 38 percent year-on-year increase in operating profits to 26 billion yen ($234 million) last fiscal year.

FPT has also successfully tied up a deal with publisher Tokyo Shoseki to digitize textbooks. 

This year the Japanese government will approve a plan to convert textbooks into digital form at all schooling levels by 2020.

Japan accounted for nearly half of FPT's global revenue last year, prompting the company to put Japan on its priority list.

In the first four months of this year, FPT recorded VND248 billion ($11 million) profit from its overseas business, up 58 percent from the same period last year. Foreign revenue hit VND1.6 trillion, up 35 percent on-year.

Revenue from the Japanese market alone for the same period grew 59 percent to VND815 billion.

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Vietnamese IT developer FPT hopes latest tie-ups with Japanese companies will increase its brand recognition as a business process outsourcing service provider. Photo by FPT's online newspaper chungta.vn 

The Vietnamese IT firm is aiming for a 40 percent increase in annual revenue from the Japanese market this year to reach $36.4 million. It is also targeting revenue of $200 million in 2017.

The IT developer expects to create 8,800 jobs in both Vietnam and Japan.

FPT is looking at more opportunities related to business process outsourcing (BPO) orders from Japanese clients.

The company hopes the tie-ups with the Japanese printer and publisher will help it handle the increasing competition from China and the Philippines.  

 
 
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