FPT's strategic expansion in Japan

DNHN - FPT currently has a large customer network in Japan, including many leading corporations such as KDDI, Itochu, Panasonic ITS, and Microsoft Japan.

In an interview with Nikkei in Tokyo (Japan), Pham Minh Tuan, CEO of FPT Software, stated that FPT will invest 200 million USD to expand its operations in Japan, providing cloud and AI services to support digital transformation.

Mr. Pham Minh Tuan shared that FPT Software will supply not only human resources but also GPU computing infrastructure to create advanced AI solutions for the Japanese market.

"AI is one of our growth drivers," Mr. Tuan said.

Notably, FPT's increased investment in AI in Japan is also tied to its strategic partnership with Nvidia, a leading American chip manufacturer. In April, FPT announced a collaboration with Nvidia to build an AI factory in Vietnam and develop global partnerships. According to Mr. Tuan, FPT plans to launch new services in Japan in January or February 2025, with the deployment of a data center in Japan starting in December 2024.

This 200 million USD investment, according to Mr. Tuan, is the "initial commitment" and will be disbursed by the end of 2024. Additionally, Tuan mentioned FPT Japan's recruitment plans. As of March, the company had 3,500 employees and is still hiring. The company aims to reach 4,000 people, and if it can grow by 40% as in previous years, FPT Japan will have 5,000 people next year. Currently, 63% of FPT Japan's employees are Vietnamese, and 31% are Japanese.

The primary target of FPT's AI services is the digital transformation of financial institutions in the Land of the rising sun. Mr. Tuan explained the reason for launching new services: "They have a lot of data. How to monetize that data and create new value through data exploitation is important. AI and the latest technologies with large language models or large vision models can help customers realize their dreams but require significant computing power."

FPT Japan, a wholly-owned subsidiary of FPT Software, has officially opened a new office in a 42-story building in Mita, Tokyo. The office expansion is part of FPT's strategy to strengthen its presence in Japan, a key market for the corporation since its early days.

Japan has been and continues to be an important market for FPT, accounting for 38% of the total revenue of its software division in 2023. FPT has a large customer network in Japan, including many leading corporations such as KDDI, Itochu, Panasonic ITS, and Microsoft Japan. To maintain and grow its position in this market, FPT acquired NAC, a Tokyo-based technology company, in March 2023 to enhance its business operations.

Notably, Mr. Tuan stated that he wants FPT Japan to become the 20th largest company in Japan, with Japan maintaining the number 1 position for FPT Software and contributing 35-50% in the future to keep a balanced ratio with other markets.

FPT Software's representative also emphasized the company's strength in using the Japanese language when working with local companies. According to Nikkei, most FPT Software personnel are fluent in Japanese because more than half lived there before joining FPT. Nearly 800 employees dispatched from Vietnam were trained in Japanese.

Comparing with Japanese companies, Tuan said, "If they work for FPT, they not only learn theory but can grow every day through learning from customers, colleagues, real projects, and the latest technologies. That’s our philosophy. FPT’s core value is speed, we always want to shorten their learning time."

With significant investment and a clear strategic vision, FPT is poised to become one of the leading technology companies in Japan, while maintaining and expanding strategic partnerships with major corporations worldwide.

Mai Anh