Arfpt 2022
Arfpt 2022
Arfpt 2022
Chairman’s Message 04
35
CEO’s Message 06
To download a copy of the FPT Annual Report 2022, please vitsit the website:
http://bctn2022.fpt.com.vn/en
Conquer
global prestige
In 2022, along with exceptional benefits
brought to stakeholders and the
company, FPT continued solidifying its
position as a leading enterprise in the
industry, promoting the reputation of
Vietnam’s IT industry on the
international stage.
2022 SPOTLIGHTS Stable cash dividend
Sustainable Value Creation for Stakeholders TOTAL DIVIDEND PAYMENTS EARNINGS PER SHARE RETURN ON EQUITY (ROE)
25,356 44,010
Billion VND 18.4% Billion VND 23.4% The stock of interest
RANKING FIRST IN THE
LIQUIDITY VALUE VNDIAMOND BASKET FOREIGN OWNERSHIP RATIO
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION,
AND AMORTIZATION (EBITDA) PROFIT BEFORE TAX
223 Accounting for
49%
9,495 7,662 Billion VND/session 7% 15.9%
Billion VND 19% Billion VND 20.9%
Information transparency
PRESTIGIOUS AWARDS FOR CG CG SCORE OF MEETINGS WITH INVESTORS
18,915 1,150 The financial data in this report is provided based on the consolidated financial statements, which include the financial
statements of the Corporation, the financial statements of companies under the proprietorship of the Corporation
Billion VND 30.1% Billion VND 54.3% (subsidiaries), and the consolidated business results of its affiliated companies using the equity method.
Indicator 2018 +/- 2019 +/- 2020 +/- 2021 +/- 2022 +/-
Owner’s equity 14,775 10.4% 16,799 13.7% 18,606 10.8% 21,418 15.1% 25,356 18.4%
Market Capitalization 25,892 -17.1% 39,544 34.5% 46,329 14.6% 84,395 45.1% 84,361 -0.04%
CONTRIBUTION TO THE STATE BUDGET CSR SPONSORSHIP JOB CREATION
Total assets 29,757 16.0% 33,394 12.2% 41,734 25.0% 53,698 28.7% 51,650 -3.8%
108,100
Full-time equivalent students
29 Profit after tax (PAT)
Net profit attributable
3,234 30.0% 3,912 21.0% 4,424 13.1% 5,349 20.9% 6,491 21.3%
to the parent company’s 2,620 32.3% 3,135 19.7% 3,538 12.8% 4,337 22.6% 5,310 22.4%
at all education levels Countries and territories
shareholders
The Top 3 Vietnamese Publicly Listed Companies that have Top 5 Large-Cap Enterprises with Best Corporate Governance
the best corporate governance scores in the ASEAN region • Five consecutive years
• Two consecutive years • The Ho Chi Minh City Stock Exchange, The Hanoi Stock
• The ASEAN Corporate Governance Scorecard Exchange, and the Vietnam Investment Review
Top 3 listed companies favored and appreciated by financial Top 15 Enterprises With Good Financial Management Capacity
institutions and investors • Two consecutive years
• The Voting program for Listed companies with the best • The 2022 Enterprise Performance Evaluation program
Investor Relations activities in 2022 (IR Awards 2022)
Business-Outcome-Driven Enterprise
Architecture Consulting Asian Technology Excellence Awards
• Five-star rating • Artificial Intelligence (AI) Category
• Gartner Peer Insights • The Asian Business Review
Top 10 Vietnam Gold Star Award The Gold Award and Top 10 Excellent
• Seven times consecutively digital products for the digital economy
• The Central Committee of the Vietnam
• The Ministry of Information and
Youth Federation and the Central Committee
Communications
of the Association of Young Vietnamese
Entrepreneurs
A Great Workplace in Japan, the US, and Singapore Top 50 Sustainable Development Enterprises in 2022 –
• Great Place to Work®, HR Asia Best Companies to Work for Listed Enterprises
in Asia • Nhip cau dau tu Magazine
The “Best Places to Work in Information Technology, Software, The Gold Award For joining forces with Vietnam in combating
Applications, and E-commerce” award Covid-19 in the new normal
• Three times consecutively • Stevie Awards – the only awards program to recognize innovation
• Anphabe in business throughout the entire Asia-Pacific region
Top 500 Employers in Vietnam – VBE500 Top 801-1000 Global University Rankings for sustainable
• Viet Research, the Dau Tu (Investment) Newspaper development (The Impact Rankings 2022)
• The Times Higher Education (THE)
In addition, FPT has accompanied its current customers, focusing on providing services and solutions on a larger scale
and bringing continuously higher value to the consumer. Service quality has always been a significant determinant
to help improve the Corporation’s competitiveness and elevate its position in the value chain. In particular, after six
Helping Vietnam to compete in global microchip production years of companionship, FPT and Seino Information Service (SIS) - a technology company of Seino, a leading Japanese
corporation in the logistics industry - continued to prolong their cooperative relationship, aiming to build an automated
In September, FPT officially launched its first line of microchips deployed in medical devices, realising the dream logistics for goods transport system free of human labour in the next five years.
of manufacturing semiconductor components by utilising Vietnamese brainpower. The Corporation has pledged
to ship 25 million chip units to the global market within the next two years. In 2023, it is expected that seven more Owing to a business strategy that evenly distributes its focus all customers regardless of income, the number of projects
new chip lines will be introduced to the market for various sectors, including technology, telecommunications, IoT, worth over 05 million USD reached a record of 31, showing a shift in project structure to a higher segment.
lighting equipment, smart devices, automotive technology, energy, and electronics. FPT’s chip launch was one of
the top 10 IT Headlines of 2022 as voted by the Vietnam ICT Press Club and the Vietnam Science and Technology
Journalists Club.
Through its partnerships with international tech giants, FPT has been increasingly completing end-to-end digital
transformation solutions, including consultation, planning, training, and implementing services for domestic and
01 billion USD in sales from overseas markets Ceaseless global expansion global customers, all of which have gradually elevated its reputation in terms of being an influencing force of digital
transformation and on the IT industry as a whole.
For the first time, FPT made 01 billion USD from Over the past year, the Corporation has also consistently
international markets thanks to the robust transformation expanded its operations on a global scale. 04 new offices In 2022, FPT became a strategic shareholder of LTS, Inc. (one of Japan’s Top 20 consulting and digital transformation
accommodating our provision of end-to-end IT services were opened in the US, Denmark, Japan, and Thailand, companies with more than 20 years of experience). The investment in LTS, Inc. was part of FPT’s strategy of expanding
in consulting, designing, and developing to implementing further enhancing growth opportunities and helping to consulting and digital transformation services to the global market, especially in Japan and the USA.
large-scale digital transformation projects for leading provide 24/7 services to customers globally. FPT’s digital
In August, the Corporation signed a cooperation agreement with Shinsegae I&C - a global retail tech company that
businesses across every continent. Following this transformation solutions based on emerging technologies,
creates value in new areas within digital technology, under the Korean retail giant Shinsegae Group. This cooperation
achievement, FPT was awarded a certificate of merit by such as AI, IoT, Cloud, Blockchain, Big Data, RPA, etc., have
agreement is expected to promote the function of Vietnam’s global digital technology supply center. In addition, FPT
the Ministry of Information and Communications (MIC) served over 1,000 global customers.
and NCS (Singtel Group’s subsidiary) - a tech titan in the Asia-Pacific region - teamed up to launch a Strategic Delivery
for outstanding performance in international markets
Centre (SDC) in Vietnam, expanding their global delivery network capabilities and better supporting global demands
in 2022.
specific to digital transformation. The SDC in Vietnam will employ a team of more than 3,000 by 2025. It was NCS’s
third delivery center in Asia.
Scaling up and enhancing education quality Opening of Hope School and the range of
significant social responsibility activities
FPT Education surpassed the milestone of more than The first 200 students of Hope School from 41 different
Creating a push for numerous leading enterprises in Vietnam 100,000 full-time equivalent students throughout provinces and cities across the country were welcomed
the system, becoming a Mega-scale educational to their first academic year. In addition, FPT has also
In 2022, the Corporation also joined large enterprises such as Thien Long, Tan Long, Flamingo, An Gia, Vinaseed, organization with all levels varied from primary to cooperated with the Hope Foundation to implement
Cotecons, EVNGENCO1… graduate schools. Simultaneously, FPT Education other CSR activities, such as donating 100 houses to
launched a series of new schools in Hai Phong, Bac the poor in Hoc Mon and Cu Chi Districts (HCMC), and
Perhaps the most notable new partnership was the cooperation between FPT and Ba Huan Jsc. in comprehensive
Ninh, and Bac Giang. It also started the FPT UniSchool building 250 bridges across rural areas nationwide...
digital transformation, helping Ba Huan realize its vision of becoming a high-tech and sustainable firm. Since the start
Education Complex in Ha Nam with a scale of 11.9
of the partnership, Ba Huan has go on to set digital transformation benchmarks for the agriculture sector, improving
hectares to promote education and provide a high-quality
the quality of life for many farmers. Today, Ba Huan stands as one of the largest poultry egg suppliers, with an estimated
workforce, sustaining breakthroughs in the province’s
market share of about 30%.
socioeconomic development.
RESPECT INNOVATION
FPT accepts people for who they are regardless FPT constantly acquires knowledge, proactively
of hierarchical positions and relationships. absorbs new management and business models,
Moreover, it provides a good work environment and proactively invests in research and development.
for employees to develop and be themselves. We pursue paving the way for emerging technologies,
products, solutions, and services.
TEAMWORK EQUALITY
Teamwork is the foundation of business success. Equality is essential for leaders to gain trust
Therefore, each employee will join forces to and for their staff to promote creativity, aiming
create collective strength sharing one common at the Corporation’s sustainable development.
goal: the success of customers and the
sustainable growth of the Corporation.
EXEMPLARITY LUCIDITY
Leaders must be the ones who best demonstrate FPT requires leaders to have long-term visions
the Spirit of FPT and the values of “Respect – and assertiveness.
Innovation – Teamwork”.
During more than three decades of development, FPT has constantly been exploring and providing practical and 2021
effective products to millions of people and tens of thousands of business and non-business organizations worldwide,
Thriving in the “Green Normal”
thereby putting Vietnam on the global tech map. 2018
Accelerating M&A deals to expand its ecosystem
Commemorating the 30th anniversary of FPT and
and scale up operations through an investment in
1988 announcing its mission to become one of the digital
Vietnam’s top corporate governance platform –
2001 transformation leaders.
Base.vn, thereby promoting digital transformation in
Being established on September
13 with the first 13 members. Purchasing 90% of shares in Intellinet – one of the largest SMEs. In addition, buying Intertec International was
Being the first IT company in
technology consulting companies in the US. the strategic step to affirm its position in the US and
Southeast Asia to receive an
1996 ISO 9000:2000 certificate. 2008 ensure long-term growth.
Growing to be the largest Implementing the Personal 2019 Initiating the Digital Vaccine Program for Businesses
– FPT eCovax. The program supported more than
Vietnamese IT company, 2002 income tax management
Strengthening its stance to become a comprehensive
project that benefited 13 3,000 businesses to avoid disruptions and recover
developing large-scale IT DX service provider. in the “green normal”.
Being equitized with total million taxpayers, which
systems in finance and banking,
chartered capital of VND 20 billion. was the largest project in
tax, customs, and e-government. Signing two DX consultancy contracts with Accompanying 40 provinces and cities nationwide
Southeast Asia then.
DPDGroup - the second-largest international parcel to promote comprehensive digital transformation
Being the first IT Company in
delivery network in Europe - and Minh Phu Seafood in three pillars of the digital economy, digital
Southeast Asia to receive a
1997 CMM4 certificate, the standard
2012 Corporation - the global leader in the processing and government, and digital society towards the model
exporting of shrimp products. of a digital nation.
for managing quality control of Being listed in the Global
Becoming one of the first 04
software products evaluated Outsourcing 100 by IAOP. Signing a five-year licensing agreement with a
licensed Internet service Being the only technology firm in Vietnam to be
providers in Vietnam. by the US’s Software Engineering Japanese company for USD 6.5 million to use FPT’s RPA honored at the AsiaMoney’s Asia Outstanding
Institute. platform akaBot. Companies Poll 2021.
In the field of Technology, the Corporation affirms its capabilities and leading position in the industry with the
subsidiaries below: One of the region’s leading Telecom Leading the trend of advertising technology, creating a
and Internet service providers cutting-edge digital media ecosystem
A comprehensive digital transformation The leading IT service provider Remarkable services and solutions
consulting company in Southeast Asia
• Telecommunication services: Internet services; private channels; data centers; VoIP phones; value-added
telecommunications services; inter-provincial and international connections; IoT and Smart-home services;
Smart Cloud • Television services: FPT Play; Internet-based and mobile-based entertainment products;
• FPT Smart Home products: Lighting Solutions; Security & Surveillance Solutions; Television Solutions; Monitoring
The leading system integrator and solution The world-class AI platform & Solutions;
provider regionally and in wider Vietnam Cloud-based services
• The smart meeting solution on multiple platforms: On Meeting;
• The digital media ecosystem: digital content products, online sports platforms (VRace), the platform for insight into
expert opinion and advice in various domains (eBox), the hybrid event platform (eLive), the online music show
(In the Mirror), the digital publishing platform (eNewsroom), the online advertising solution (eClick) reaching
tens of millions of users and hundreds of thousands of partners and customers.
108,100 13 140
Remarkable services and solutions
• DX Consulting: Digital maturity assessment with the DxRank™ solution; End-to-End DX Consulting (from planning
to execution and post-check); Digital HR Consulting; IT System Consulting (information digitization, process
transformation, IT infrastructure development and consolidation); Full-time equivalent Localities to put International partners
students in all educational facilities
• FPT. AI, the leading artificial intelligence platform, drives operating breakthrough and amplifies productivity with education levels
20+ prominent solutions ; FPT Cloud is a cloud computing platform that complies to international standard
architecture, fulfilling the highest security criteria and enabling businesses to optimize, modernize application
Market position
infrastructure and investment planning with 80+ services from IaaS to PaaS, SaaS;
• DX solutions and services based on technologies such as AI, RPA, IoT, Big Data, Cloud…; • The international-standard for an education system that meets the needs of society and is integrated with
• Specialized solutions and services in Public Services, Telecommunications, Banking and Finance, Healthcare, state-of-the-art training technologies;
Transportation, Public Finance, Energy, and Business; • FPT Education and FPT University were BrandLaureate’s Brand Influencers award winners.
• The most popular business management platform with more than 100 applications; Academic levels
• The integration and conversion of technology systems;
• Basic education: Elementary, secondary, and high school;
• Solutions based on technology platforms, including SAP, Oracle, Microsoft, and ESRI.
• Vocational Education: Polytechnic school; College; Certification training; Corporate training;
• Higher Education: Undergraduate (FPT University); International affiliate program; Postgraduate.
As a global technological enterprise, FPT has a system of 290 offices and branches in 29 countries and territories
worldwide, and the technological infrastructure that covers all provinces and cities in Vietnam.
Revenue structure
by geographic area
14%
14.7%
41.2% 3.4%
58.8% 58.8%
9.1%
Vietnam Vietnam
Overseas Japan
The US
Europe
SUBSIDIARIES AFFILIATES
TECHNOLOGY
TELECOMMUNICATIONS
2.18%
BY NUMBER OF
SHAREHOLDER
SHARES OWNED
49% STRUCTURE
16.14%
EXTERNAL EXTERNAL
SHAREHOLDERS SHAREHOLDERS
(INSTITUTIONAL (INDIVIDUAL INTERNAL
INVESTORS) INVESTORS) SHARE HOLDERS STATE (SCIC)
1 - 999 1,000 - 10,000
Type of shares Number of shares Percentage Par value (VND) Number of Ownership Number of Percentage of
Shareholding group
shareholders percentage shared issued shares
Common shares 1,097,026,572 100% 10,000
Vietnam 43,054 97.06% 559,515,938 51.00%
Treasury shares - - - Individual investors 42,852 96.60% 319,949,489 29.17%
Total of authorized shares 1,097,026,572 100% 10,000 Institutional investors 202 0.46% 239,566,449 21.84%
State (SCIC) 1 0.00% 63,506,626 5.79% 5 Mr. Bui Quang Ngoc 21,524,013 1.96%
Internal shareholders 16 0.04% 120,018,819 10.94% 6 Macquarie Bank Limited 19,920,614 1.82%
Total 44,358 100.00% 1,097,026,572 100.00% 10 Prudential Viet Nam Assurance Private Limited 15,522,636 1.41%
MR. TRUONG GIA BINH MR. BUI QUANG NGOC MR. DO CAO BAO MR. JEAN-CHARLES BELLIOL
Founding Member, Chairman, Founding Member, Vice Chairman, Founding Member, Independent board member
Non-executive board member Non-executive board member Non-executive board member
Nationality: Japanese
Work experience: Nearly 50 years in the IT sector
He comprehensively reformed the IT system of Tokio
Marine & Nichido Fire Insurance and further transformed
the Japanese insurance sector through implementation
of digital transformation. Formerly the Chairman of the
Japan IT Association and a member of several committees
on the government’s IT policy, he made many contributions
to the development of the IT industry in Japan. Currently, he
maintains his support for digital transformation in Japanese
businesses as the President of CeFIL, a non-profit
organization promoting innovation related to the Japan
MR. HIROSHI YOKOTSUKA Business Federation (Keidanren).
Board member
Nationality: Vietnamese
Work experience: Over 10 years in the field of investment
and corporate governance
She has contributed to the management and representation
of State capital in enterprises in the BOD or in Supervisory
MS. TRAN THI HONG LINH Board positions.
Nationality: Vietnamese
Work experience: 25 years in the IT sector
As one of the young leaders who has developed his professional competence through different positions, he has deep
insights into business and technology. He also has close relationships with the Government, localities, partners, and
B2B/B2C customers. Over the years, he has held many significant leadership positions, including CEO of FPT Telecom
(2012-2018), CEO of FPT IS (2018-2019), CEO of FPT (since March 2019), and COO of FPT Online (2013-2015). With a fresh
vision, determination, and appreciation for creativity and discipline, he has led FPT, its subsidiaries, and affiliates to a
higher level of innovation and growth, strengthening its position as the leading DX Corporation.
Also, he has shaped a long-term sustainable growth momentum for FPT by developing the Made by FPT ecosystem,
forming new sales channels, and synergizing all business units. At the same time, he has taken the initiative to carry
out the internal digital transformation that helps optimize performance, save hundreds of billion dong in costs and
expand partnerships with industry leaders, local leaders, and the government…
He is Vice President of ASOCIO for the 2023-2024 tenure, Vice President of Vietnam Young Entrepreneurs Association,
Chairman of the Vietnam Software and IT Services Association (VINASA), member of the Vietnam Internet Association,
member of Vietnam Cable Television Association, and member of Executive Committee of HCMC Informatics Association.
02. MR. HOANG VIET ANH 03. MR. NGUYEN THE PHUONG
Senior Vice President Senior Vice President
01 02 03 04 05
The Supervisory Board for the 2022-2027 tenure
FPT Supervisory Board consists of three members with years of experience in the financial field and professional
01. MR. VU ANH TU certificates that meet supervisory board members’ legal requirements and standards.
Nationality: Vietnamese
Work experience: 21 years in the IT sector
Joining FPT in 2001, he is currently one of the four highest-ranking technology experts in the Corporation. He has
held vital roles in technology and engineering while promoting a raft of business development activities. Notable
roles include Deputy CEO of FPT Telecom, Chairman of FPT International Telecommunications Co., Ltd. (under
FPT Telecom), Head of IT Department at FPT...
Mr. Tu has successfully led the deployment of many telecommunications networks, public service digitization
projects, and top cybersecurity strategies for the Government and financial organizations. He has also developed
numerous Made by FPT solutions and services with millions of users.
He is responsible for FPT’s strategies, orientations, policies, and resources regarding technology development.
He has also been empowering the Made by FPT ecosystem and participated in other critical DX projects with
major clients...
02. MR. CHU QUANG HUY 03. MR. NGUYEN XUAN VIET
MR. NGUYEN VIET THANG MR. NGUYEN KHAI HOAN MS. DUONG THUY DUONG
Chief Human Resources Officer Chief Information Technology Officer
Head of the Supervisory Board Member of the Supervisory Board Member of the Supervisory Board
Nationality: Vietnamese Nationality: Vietnamese
Nationality: Vietnamese Nationality: Vietnamese Nationality: Vietnamese
Work experience: 10 years in the field of business Work experience: 30 years in the IT sector
and human resources Work experience: 33 years in Work experience: 29 years in Work experience: 07 years in
Joining FPT in 2006, he has been in charge of building business and finance business and finance the investment industry
In 2012, Mr. Huy joined FPT. Over the years, he has the cyber security system of the Corporation. He
been honored with imperative awards, including FPT has also played the advisory role in assisting the BOM As a member of the Supervisory He has been a member of the Having worked in the investment
Under 35, FPT’s Outstanding Employees, and FPT’s and subsidiaries’ leaders in developing strategies, Board since 2008, he was elected Supervisory Board since 2007 industry for 07 years since
First doctoral candidate (Trang Nguyen). In 2019, policies, and plans for IT applications to achieve the Head of the Supervisory Board with years of experience in the graduation, she is a young talent
he was appointed as FPT’s Chief Human Resources optimal business efficiency. Besides, he has effectively for the 2012-2017, 2017-2022, and financial sector. He is the Deputy with significant experience in
Officer. He has contributed to making FPT one of the implemented IT strategies, policies, and resources 2022-2027 terms. He is currently CEO, CFO, and COO of FPT Software. corporate governance. She has
most popular employers in the IT domain. In 2020, throughout the organization. the Vice Principal of FPT University also effectively contributed
he was named by Forbes in the Top 30 Under 30. and the Dean of the FPT School to managing state capital in
of Business & Technology (FSB) numerous enterprises.
under FPT University.
and nearly 90% of emerging markets and developing economies (EMDEs). About two-thirds of mature economies and 2022 Spending 2022 Growth (%)
more than half of emerging markets had inflation above their target in 2021. For example, US inflation hit a 40-year
high of 8.6% in May 2022. Europe witnessed consumer prices rise above 8%. In Southeast Asia, inflation also hit new Data Center Systems 212,218 11.1
highs: 7.1% in Thailand, 5.4% in the Philippines, and 3.47% in Indonesia in May 2022. Software 806,800 9.6
In response to escalating inflation, countries adopted a tighter monetary policy. For example, the Federal Reserve Devices 767,872 -5.0
System (FED) increased its key interest rate seven times in its ongoing effort to fight inflation. In addition, the European IT Services 1,283,192 6.2
Central Bank (ECB) raised its key interest rate for the first time in 11 years.
Communications Services 1,464,551 0.4
Overall IT 4,534,632 3.0
Source: Gartner
Vietnam’s economy remains a bright spot
Global Digital Transformation spending to increase by 17.6%
Despite the difficulties in turbulent world economies and complex political environments, Vietnam’s socio-economic
activities achieved remarkable results in 2022. For the first time, GDP reached 409 billion USD, an increase of 8.02% According to a new update to the International Data Corporation (IDC), a five-year compound annual growth rate
over the previous year due to the economy’s recovery, a record high in the 2011-2022 period. Realized FDI hit the (CAGR) of the DX services over the 2021-2025 period is forecast to reach 16.6%. Global spending on the DX of business
highest in the past five years at nearly 22.4 billion USD, up 13.5% over 2021. Contrary to the increased global inflation, practices, products, and organizations reached 1.8 trillion USD in 2022, an increase of 17.6% over 2021.
domestic inflation was kept at 3.15% (achieving the National Assembly-set target of below 4%).
It is certain to be a challenging year ahead, but there is room for economic growth. Effective cooperation and Spending on AI to soar
international integration are of special significance as the situation has become much more complicated. Meanwhile, A forecast from the IDC titled “Worldwide Artificial Intelligence Spending Guide” shows that global spending on AI,
Vietnam’s advantage is its critical membership in mechanisms for international cooperation in research and including software, hardware, and services for AI-centric systems, was nearly 118 billion USD in 2022. AI has been
development in Southeast Asia and the world. incorporated into a wide range of products, driving a compound annual growth rate (CAGR) of 26.7% over the
2022-2026 forecast. It is more than four times greater than the five-year CAGR of 6.3% for worldwide IT spending over
the same period.
137
Secure Access Service Edge - SASE 85%
2024, and 160 billion USD in 2025.
85%
MLOps (Machine Learning Operations)
52% By 2025, digital technology’s annual revenue growth rate will be twice Vietnam’s GDP. Hence,
52%
Cloud
Distributed Cloud 84% Vietnam may have around 80,000 digital technology enterprises by 2025. Moreover, digital
Platforms IT services
84%
37% technology products and services designed and manufactured domestically are expected to
Multi-experience Development Platform AI/Machine Exporting
meet about 50% of the needs of state agencies. Besides, the country will be nurturing the 10 most
Edge Computing 77% 32% 37% Learning
prominent technology corporations that generate more than 01 billion USD annually in revenue to
Integration take pole position in the global race for digital innovation.
Digital Twin 77%
Technologies/
Blockchain 72% APIs/APIs
Architecture
32% Additionally, Vietnam aims to be among the top five countries in the world in terms of revenue from
software services and the production and distribution of mobile games. There will be at least eight
5G 71% localities nationwide, with earnings from the digital technology sector reaching over 01 billion USD
in value. In addition, Vietnam targets attracting at least 25 billion USD in foreign direct investment
into high-tech industries.
Source: Gartner
Source: Gartner
Over the past 34 years, our services, products, and solutions have established themselves in every facet of life, business, • The Digital Union will be established to bring the best and most true-to-life experiences, products, and services to
and operating activities of enterprises and organizations in Vietnam and globally, improving work performance and individuals, organizations, and companies, based on five core components:
quality of life.
In the two years of the complicated and unpredictable situation of Covid-19, the Made by FPT ecosystem has strived to
complete its mission of “Technology for humanity” by harnessing the potential of digital technology to help individuals
and businesses survive the pandemic and even, to grow within its restraints. When facing drastic changes in the way
people live, work, and communicate, as well as the business and social transformation due to Covid-19, FPT is more and
more aware of the fundamental role that technology plays in a brighter future.
In 2023 - the 35th year of development, FPT Corporation has set a higher goal: Creating Happiness with the DC5-135 AI - intelligent services Data - with Identification -
Strategy for the period of 2023 - 2025. that seek to mimic the diverse data lakes each end-user is
human brain to help and integrated, an individual who
DC5-135 Strategy
the functional systems interconnected is fully identified
DC5 stands for Digital Conglomerate 5.0, a digital union with the ultimate goal of creating satisfaction for individuals, understand and support services of FPT and and served at
success for organizations, and moreover, prosperity for the nation. This strategy aims at the following key objectives: making actions and its partners. any customer
• FPT continues to promote the development of digital transformation solutions that combine self-built products
recommendations for touchpoint.
(Made by FPT) with those offered by its partners to improve the work performance of organizations and individuals. customers and end-users.
• DC5 will bring together the best technologies and solutions, along with the knowledge and insights FPT accumulates
through large-scale projects in various domains that it has deployed in Vietnam and internationally.
• By 2035, FPT expects to reach one million digital transformation workers participating in the Digital Union, strongly
accelerating domestic and global digital transformation.
In overseas markets • OKRs and Performance Management: The Corporation maintains challenging objectives with specific actions from
the corporate to the individual level. The results must be evaluated on a monthly and quarterly basis to monitor and
More offices will be opened in Latin America, North America, the Middle East, and Eastern Europe with the goal of accelerate the realization of the set goals.
increasing service capacity and availability to serve global customers and unlocking the potential of new customer
markets. • Pay-for-performance compensation: FPT creates transparency and equity while implementing a pay-for-
performance compensation model. This program pays employees based on how they perform their job, thereby
Following the success in offering digital transformation services, FPT will heavily invest in digital transformation solutions increasing motivation and productivity.
for Healthcare, Finance – Insurance, and Automobile manufacturing. Besides this, Cloud and intelligent manufacturing
solutions will be enhanced to serve our global customers. • Rotational Program: Leaders and managers at all levels across the Corporation will be rotated with new challenges
and experiences to nurture their creativity and motivation to dedicate themselves to a common goal. The 2023
In the domestic market rotational program combines the Talent Management program to build a strong succession of leaders yearning for
For corporate and institutional customers, FPT enhances digital and data solution products to support sales management new opportunities.
and customer care, such as eKYC, Chatbot/VoiceBot, CDP, and Loyalty. In addition, management excellence solutions • From 2023, FPT will implement the “Total Employee Well-being” program - the overall redesign of welfare policies
for internal operations (iHRP, eSign/eContract, and akaBot) that combine core systems (ERP, Manufacturing...), Digital aligned with Employee Experience, to create a competitive work environment while inheriting and maintaining
Transformation solutions, FPT Cloud infrastructure, other packages of data processing solutions, and intelligent AI are corporate values.
also in focus.
As a pioneer in digital transformation in Vietnam, FPT constantly invests in internal digital transformation programs. We
FPT provides end-to-end, highly effective, and reasonable integrated solution packages to fit business budgets during facilitate, promote and implement digital initiatives to accelerate digital transformation internally under the FPT Digital
the global economic downturn. Kaizen methodology. The technology integration in management activities helps the leadership team to quickly and
In addition, the Corporation seeks to continuously innovate and create new services to provide unique experiences for accurately capture information and support timely decision-making, thereby promoting management and operational
each customer at every point of contact. During this period of 2023-2025, FPT is committed to providing meaningful excellence.
innovations in services for the masses. The customers will benefit from the loyalty points, AI Recommendation systems, 42 major digital transformation initiatives were implemented in 2022, saving costs by 158 billion VND in expenses and
and third-party integrations throughout the product ecosystem of FPT. increasing revenue by 83 billion VND.
In addition, with its competitive advantages in technology, procedure, and labor, FPT is committed to accompanying the Data Mining, Automation, and Cloud Transformation continue to be the focus of internal digital transformation programs
government and state agencies in implementing digital transformation projects, gradually forming new key frameworks in 2023.
and technologies for its digital government model. Based on practical needs, the digital solutions and services built by
FPT are guaranteed to solve many problems experienced by the government and ministries and promote the goal of
national digital transformation, with the highest goal of saving time and costs, benefiting the state, individual people,
and businesses.
Technology • Creating content centers and enhancing digital content ecosystems with a high pace of development, focusing on
potential fields such as technology, health, cars, etc.
Continue to invest heavily in developing new products, platforms, and solutions based on core technologies such
as Cloud, AI, and Blockchain... and focus on expanding sales channels in various domains in Vietnam and abroad.
Global IT services Education
• Promoting digital transformation service delivery based on emerging technologies such as Cloud Computing, • Recognizing the shift to high-quality private education and the significant needs for the IT industry, FPT continues to
Automation... and higher value services (like Consultancy and Roadmap Design) to affirm competitiveness and expand its wide-ranging educational ecosystem covering all levels with diverse majors and strengthen its presence
create momentum to increase profit margin. throughout the provinces and cities nationwide.
• Strengthening global presence to enhance the availability of our products, services, and solutions to reach Fortune • To achieve this, digital technology will be utilized to ensure the quality of training. In addition, the Corporation will
500 enterprises, expanding the market by launching new offices and promoting strategic investments, mergers, spend on improving the student experience, promoting FPT Education’s brand, and launching new schools in provinces
and acquisitions. and cities. Its aim is to be a giga-scale education institution by 2025.
• Attracting leading experts in many fields, especially Healthcare, Finance - Insurance, and Automobile manufacturing,
in order to enhance innovation capacity and develop new and more advanced technology platforms and solutions.
Moreover, promoting recruitment and training of technical engineers in charge of consulting and implementation
services, in response to rising global demand. The investment plan
Domestic IT services
• Supporting the private sector, especially prominent enterprises in the top 500 largest Vietnamese enterprises In order to ensure long-term growth momentum, FPT will enhance its investment activities. Detail as follows:
(VNR500), to accelerate digital transformation. In particular, building data systems, promoting business solutions
in many fields, and diversifying the customer base.
• Technology: Expanding office facilities in Hanoi, Da 1,700
• Approaching state-owned enterprises, the government and localities to cooperate in consulting and implementing Nang, and HCMC ... as well as building technology
digital transformation; supporting provinces and cities for comprehensive socio-economic development on infrastructure for business.
1,800
all three pillars of the digital economy, digital government, and digital society, towards the digital nation model;
helping localities flexibly adapt to the new normal through consulting on socio-economic development planning,
• Telecommunications: Investing in main and 5,800
undersea cables, enhancing the quality of domestic
digital transformation strategies, training to raise awareness of digital transformation on a large scale.
network infrastructure and data centers.
2,300
• Developing Made by FPT products to help businesses and organizations accelerate digital transformation, increase
• Education: Expanding campuses in Hanoi, HCMC,
productivity, save costs, and make the most of resources. FPT combines Made by FPT solutions, Infrastructure, and
and Da Nang, launching seven new high schools
Telecommunications services with specialized core solutions offered by its partners to build reasonable solution
nationwide. Technology Telecommunications Education
suites for businesses and organizations.
• Continue developing HR policies to attract high-tech employees and proactively train a high-quality workforce with Unit: VND in billion
FPT Education’s activities.
Indicator 2021 2022 +/- Cash conversion cycle (day) 46.6 49.5
4. Profitability ratios
Total assets 53,698 51,650 -3.8%
Consolidated revenue 35,657 44,010 23.4% Return on sales 17.5% 17.2%
Profits from business activities 6,228 7,589 21.8% Pre-tax profit margin 17.8% 17.4%
EBITDA 7,981 9,495 19.0% After-tax profit margin 15.0% 14.7%
PBT 6,337 7,662 20.9%
Return on Equity (ROE) 26.7% 27.7%
PAT 5,349 6,491 21.3%
Return on Capital Employed (ROCE) 17.2% 18.0%
Earnings per share (VND) 3,618 4,429 22.4%
Cash dividend payment 1,697 2,011 18.5% Return on assets (ROA) 11.4% 11.9%
Dividend payout ratio 39.1% 37.9% -3.2%
The proportion of revenue by sector The proportion of pre-tax profit by sector Global IT services
Unit: VND in billion Unit: VND in billion
3,517 Mr. Pham Minh Tuan
1,478 CEO of FPT Software
8%
25,763 19% 3,366
59% 44%
Revenue and PBT from overseas IT services were 18,915 billion VND and 2,977 billion VND, equivalent to a 30.1% and
Technology Telecommunications Education, Investment and Others Technology Telecommunications Education, Investment and Others 22.9% increase, respectively.
Profit growth was mainly affected by the sharp drops in exchange rates in Japan and Europe in the second half of 2022.
However, revenue from overseas markets grew by 50% in the US and 35.7% in Asia-Pacific (APAC). Despite the impact
Technology of geopolitical conflicts and economic recession in the European market, the Company still maintained a sustainable
The Technology sector gained 25,763 billion VND in revenue and 3,366 billion VND in PBT, up 23.4% and 22.4% over the growth rate of 19.4%. Furthermore, after suffering longer-term negative effects from the pandemic, FPT’s business
same period last year, respectively. in Japan witnessed an impressive recovery. As a result, the revenue growth rate in Japanese Yen reached 30.3%,
reflecting the increasing demand for digital transformation.
4000
3,219 Revenue per capita continued to improve to 14.9% (excluding exchange rate effects) due to the efforts to lift internal
3000 productivity and a strategy to focus on large-scale customers.
2,453
1,811
2000
Domestic IT services
1000
Winning a series of large-scale deals In 2022, for the first time, the Company reached a record revenue
Due to improving service delivery and focusing on large projects, in 2022, the number of customers bringing in revenue of 7,000 billion VND, launched various key products, and signed
of over one million USD reached 162 customers, a growth of 26.5%. large projects, showcasing its abilities to solve big problems.
In addition to “hunting whales”, FPT has accompanied current customers, focusing on providing services and solutions In 2023, the Company starts its new development phase with
on a large scale and bringing higher value. Service quality has always been a significant determinant to help improve the the message “Prospering with the people and the country”.
Corporation’s competitiveness and elevate its position in the value chain. As a result, the number of projects worth over The Company will constantly develop and deliver practical
05 million USD reached a record 31, an increase of 63.2% over the previous year. Obviously, it shifted to a higher market solutions and comprehensive platforms to serve each business
segment, confirming FPT’s prestige and delivery capacity compared to the leading global technology giants. and citizen. Our products will help create business networks and
growth opportunities, improve experience and quality of life, and
promote the development of Vietnam’s digital economy.
Type of customers 2021 2022
In fact, in recent years, various major customers of FPT have achieved breakthrough results due to the implementation
of technology platforms. For example, Boston Pharma has increased revenue by 3-4 times, lifted business performance
by four times, and reduced customer care costs by 33% after implementing ERP, mobile sales applications, and the Base.
vn ecosystem. The 60-year Rang Dong Joint Stock Company has created a “phenomenon” when continuously creating
miracles with growth rates of up to 15-20% from 2019 until now, based on the “putting digital transformation at heart”
strategy. In the real estate industry, FPT and An Gia put into operation a set of specific solutions for An Gia’s 40 branches in
just over six months, helping to triple its capacity to deal with contracts, customer information, and business digitization
- meeting 95% of its requirements.
According to the latest report of the Enterprise Development Agency (under the Ministry of Planning and Investment),
almost all businesses in different industries are engaged in some form of digital transformation. However, only a few
enterprises (accounting for 2.2%) have successfully leveraged technologies and management systems to handle data and
make decisions in production and business. Therefore, there must be high growth potential for technology companies.
Digital transformation began to deepen and became the implementation plan of various provinces and cities nationwide,
demonstrated by positive signals about human- and business-centric mindsets.
Based on local socio-economic characteristics, competitive advantages, and digital transformation experience, FPT
tailored platforms and solutions to promote local transformation, accelerating the socio-economic development of the provinces
and national digital transformation. In addition, with comprehensive technology capabilities in many fields, FPT has
outstanding advantages to extensively partner with localities in developing digital Government, smart cities, education, Telecommunications
IT resources, business transformation, and other digital initiatives for different industries and fields.
The Telecommunications sector gained 14,730 billion VND in revenue and 2,818 billion VND in PBT, up 16.1% and 17.6%
With advantages and opportunities generated from public investment projects, FPT has proactively approached state over the same period last year, respectively. In the coming time, FPT will continue investing in main and undersea cables,
agencies and localities to advise on the digital transformation roadmap. As a result, the Corporation has cooperated with enhancing the quality of domestic network infrastructure and data centers.
more than 30 provinces and cities and signed DX contracts with 25 localities, such as Nam Dinh, Quang Ninh, Vinh Phuc,
Thua Thien - Hue, Dak Lak, An Giang, Dong Thap, etc., in terms of three pillars (digital Government, digital economy and
digital society). The proportion of the The proportion of the Telecommunications
Telecommunications sector’s revenue sector’s pre-tax profit
Accordingly, FPT Corporation cooperated with Dong Thap Provincial People’s Committee to implement the e-Government Unit: VND in billion Unit: VND in billion
model to improve the local administration’s efficiency in serving people and businesses. Besides, it helped build the
intelligent hospital model, electronic health records and medical records, and several IT applications in the medical field. 775 309
In collaboration with FPT Corporation, the Thua Thien Hue provincial People’s Committee launched the E-Wallet - a 5% 11%
13,954 2, 508
cashless payment solution on the Hue-S platform. In phase 1 in November 2022, 9,050 civil servants opened e-wallets
on Hue-S. Also, 8,700 people registered to get e-wallets on Hue-S. There were 60 points of sale of FPT that accepted 95% 89%
payment in-store FPT stores accepted and 190 payment acceptance points around Dong Ba market, Thanh Cong taxi,
Sun Taxi... As of January 2023, there were 25,000 people using e-wallets in Hue-S. The Digital Market (Vietnamese: Chợ
số) application running on the Hue-S platform helped promote e-commerce and local agricultural products.
VnDirect Securities Company forecasts that public investment disbursement will witness a bright spot in 2023, with an 14,730 2,8 18
increase of 20% to 25% compared to actual disbursement in 2022, creating a sustainable growth engine for domestic IT
services.
FPT’s AI platform and Cloud services maintained a triple-digit growth rate in 2022, generating 30 million USD in
registered revenue and 249 billion VND in actualised revenue. The positive outcomes were a result of continuous efforts
in developing the product ecosystem in order to gain a number of high profile international and domestic clients (in
the top VNR100) in various sectors, including Banking, Finance, Insurance, Retail, and Manufacturing. FPT.AI - The top
AI platform in the region - was delivered as a solution that comprehensively addressed customers’ problem points.
Services such as Smart Call Center solutions, AI VoiceBanking… Telecommunication services Digital content service Telecommunication services Digital content service
Revenue and PBT from Telecommunications services has officially launched the 2022 FPT Play Decoder, 2022 has been a year of “breaking through” of the Digital In addition, realizing the potential demand for a digital
were 13,954 billion VND and 2,508 billion VND, equivalent the first decoder in Vietnam to integrate IPTV and OTT Content segment after a prolonged disruption due ecosystem, FPT has developed online platforms such as
to 15.5% and 18.4% increases, respectively. The profit on the same device allowing users to experience the to the COVID-19 pandemic. Hosting more events and VRace - online sports with nearly 100,000 users, eLive – a
margin increased from 17.5% to 18% due to the high continuous and uninterrupted services anywhere with promoting sales activities, the Digital Content segment hybrid event platform, and the “In the Mirror” online music
profit of Pay TV services. any Internet connection. In addition, FPT Play increased brought revenue of 775 billion VND and PBT of 309 billion show. Furthermore, digital content cooperating with media
investment in providing interesting sports content, such VND, up 27.6% and 12%, respectively. agencies was also more well-invested and informative,
Since the social distancing period ended, FPT’s Internet
as V-League and AFF Cup, and other famous international covering a wide range of knowledge in the economy,
services segment has seen a high churn rate due to FPT has created new demands through the launch of a
tournaments like UEFA, AFC, and NBA... With the increase society, and life with tens of millions global users.
increased online demand. However, technology has series of outstanding products: the Science Innovation
in subscribers at over 20%, the profit from the pay TV
enabled the Company to control the churn rate timely Contest, AI Forum, six large-scale offline sports events, FPT also promoted internal digital transformation in
service segment achieved an impressive growth rate of
and effectively using detailed customer behavior the Podcast projects reaching young people, a series of the digital content segment, applying many disruptive
over 40%.
analytics. Thus, it helped the Company forecast the data portals that provide knowledge in health, education, technology solutions to save costs and improve labor
possibility of leaving the business of different customer In response to the increasing demand for data, sports, vehicles, etc., improving labor productivity and productivity, such as the automation technology in
groups, thereby making prompt actions to optimize FPT invested in expanding technology and opening up new business opportunities. Podcast production; the Smart Inventory System saving
the customer experience. As a result, revenue from the telecommunications infrastructure, increasing the 90% of time analyzing and synthesizing business data.
Broadband segment continued to maintain a stable coverage in districts nationwide from 59% to 63%.
growth rate of 9%. Besides, the data center business segment was
increasingly proving its potential, bringing in more than
Affirming its leading position in promoting television
15 million USD in revenue in 2022.
technology and providing copyrighted content, FPT
2022 was a year of great success for FPT Education to reach the milestone of becoming a Mega-scale educational
organization with over 100,000 full-time equivalent students throughout the system, an increase of 45.5% over 2021.
The success resulted from high-quality education, reasonable tuition fees, a humane environment, and the IT majors,
which increasingly attracted learners due to high recruitment demand and good remuneration. As a result, the revenue
of the Education segment reached VND 4,712 billion, up 52.6%.
108,100
74,313
52,005
39,833
27,139
FPT has cooperated with various provinces and cities to explore educational opportunities and expand its presence
with new facilities. It also started the FPT UniSchool Education Complex in Ha Nam, which was expected to be put into
operation by the end of 2023.
Due to its efforts to improve the educational quality and complete the project of obtaining the ISO 21001 Certification - an
internationally recognized Educational Organization Management System standard - to enhance the student experience
of FPT’s high schools and colleges nationwide, FPT Education has continuously been recognized by prestigious
institutions, such as among the Top 801-1000 universities against the United Nations’ Sustainable Development Goals
(SDGs) according to THE Impact Rankings list announced by the Times Higher Education magazine.
The BOD for the 2022-2027 tenure has been active and has fully complied with relevant regulations for the activities and • Approving the proposal on electing members of the BOD and the
responsibilities of the BOD to protect the interests of shareholders. Supervisory Board for the term of 2022-2027, submitting it to the
AGM for approval;
Principle 01: Establish the roles, responsibilities, and commitments of the Board
• Approving the proposal on amending the details of the business lines
• The operational structure, roles, responsibilities, and remuneration of the Board members are specified in the registered and submitting it to the AGM for approval;
Corporate Charter and Corporate Governance Regulations, also publicly announced in the Annual Report and on the
official website of the Corporation. • Approving the plan of issuing shares to employees with
remarkable contributions under the Employee Stock Ownership
• The BOD reviews and approves the strategic orientations, annual business plans, investments excluded from yearly Plan (ESOP) in 2021;
business plans, and budgets that exceed 10% of the annual business budgets.
• Approving the Regulation on the issuance of shares under the
• The BOD has been effectively fulfilling its supervisory roles in monitoring the effectiveness of corporate governance ESOP to employees with remarkable contributions in 2021;
activities and compliance with the applicable legislation. Those roles are demonstrated in the Business Performance
Evaluation and the BOM’s Performance Evaluation of the BOD, herein the Annual Report. • Approving the list of employees eligible to participate in the ESOP,
who had exceptional contributions in 2021;
• The BOD has also supervised and promoted high standards of business ethics, behavioral culture, and the integrity of
financial statements. • Approving the plan of issuing shares under the ESOP to senior
executives;
• All the Board members fully participate in quarterly meetings or respond to the solicitation of written opinions. The
meeting documents are entirely sent to the BOD members at least seven days before the meeting date. In 2022, • Approving the Regulation on the issuance of shares under the
the BOD conducted 08 meetings, including 04 virtual meetings and 05 times obtaining written opinions, ensuring ESOP to senior executives in 2022;
compliance with the regulations in one quarterly meeting. The Board also issued 09 resolutions. • Approving the list of employees who made high ranking
achievements in 2022 to be eligible to participate in the ESOP;
Meeting • Approving the proposal on amending the official seal of the
Attendance Content of Resolution
session Corporation;
BOD: 07 out of 07 • Approving the re-appointment of CEO Nguyen Van Khoa for the
members • Approving 2021 business results; next 3-year tenure, from March 29, 2022 to the end of March 28,
Observers: 2025.
• Supervisory Board: • Approving the 2022 business plan and submitting it to the AGM
03 out of 03 for approval; • Approving the appointment of Mr. Truong Gia Binh as Chairman of
Session 01 members • Approving the strategic orientation of 2022-2024 and submitting the BOD for the term of 2022-2027;
January 25, • BOM: 03 out of 03 it to the AGM for approval; Solicitation of written • Approving the appointment of Mr. Bui Quang Ngoc as Vice
2022 members opinions
• Approving the increase in chartered capital of FPT Software Co., Session 03 Chairman of the BOD for the term of 2022-2027;
Resolution No.01.04-
Resolution No.01.01- Ltd., FPT Education Co., Ltd., and FPT Information System Co., April 07 and • Approving the appointment of Mr. Truong Gia Binh as the Head of
2022/NQ-HĐQTFPT
2022/NQ-HĐQTFPT Ltd.; 08, 2022 the Development Policy Committee under the BOD for the term of
dated April 08, 2022
dated January 25, 2022-2027;
• Approving the time to close the list of shareholders and the date
2022
of the AGM to take place. • Approving the appointment of Mr. Do Cao Bao as the Head of the
Personnel and Remuneration Committee under the BOD for the
BOD: 07 out of 07 • Approving the Agenda of the 2022 AGM and submitting it to the term of 2022-2027.
members AGM for approval;
• Increasing the chartered capital for FPT Corporation;
Observers: • Approving the Regulations on organizing the 2022 AGM;
• Supervisory Board: • Assigning the legal representative of the Corporation to amend the
02 out of 03 • Approving the 2021 Reports of the BOD, the 2022 strategic Solicitation of written contents of the business registration certificate and information
members orientation, and the business plan and submitting them to the opinions on the newly increased chartered capital of the Corporation;
• BOM: 02 out of 03 AGM for approval; Resolution No.01.05-
Session 04 • Approving the plan of paying the 2021 remaining dividend in cash;
Session 02 members 2022/NQ-HĐQTFPT
• Approving the remuneration budget of the BOD in 2022 and May 06 to 10,
March 14, dated May 10, 2022; • Approving the plan of issuing shares to pay dividends from
submitting it to the AGM for approval; 2022
2022 Resolution No.01.03- Resolution No.02.05- retained earnings to existing shareholders after increasing
2022/ NQ-HĐQTFPT • Approving the 2021 audited financial statements and submitting 2022/NQ-HĐQTFPT chartered capital;
dated March 15, 2022; them to the AGM for approval; dated May 10, 2022; • Authorizing the Chairman of the BOD to implement the plan of
Resolution No.02.03- • Approving the 2021 profit distribution plan and the 2022 dividend paying the 2021 remaining dividend and issuing shares to pay the
2022/NQ-HĐQTFPT payment policy, submitting them to the AGM for approval; dividend.
dated March 15, 2022 • Approving the proposal of designating one out of four auditing
firms (Big4) to audit the 2022 financial statements, submitting it
to the AGM for approval;
Solicitation of written
Session 06 • Increasing the chartered capital for FPT Corporation;
opinions 6 Mr. Hamaguchi Independent Being elected as a board 02 out of 08 25%
July 05 to 07, • Assigning the CEO to amend the contents of the business Tomokazu board member for the term of 2017 -
2022 Resolution No.01.07.2022/
registration certificate and information on the newly member 2022 on March 31, 2017. Having
NQ-HĐQTFPT dated July
increased chartered capital of the Corporation. been no longer a board member
07, 2022
since April 07, 2022
BOD: 07 out of 07
7 Mr. Dan E Khoo Independent Being elected as a board 02 out of 08 25%
members
board member for the term of 2017 -
Observers:
member 2022 on March 31, 2017. Having
• Supervisory Board: 02
Session 07 been no longer a board member
out of 03 members • Approving the plan of making the advanced payment of the
July 21, 2022 since April 07, 2022
• BOM: 02 out of 03 first dividend of 2022 in cash.
members 8 Mr. Hiroshi Yokotsuka Independent April 07, 2022 06 out of 08 75%
Resolution No.02.07-2022/ board
NQ-HĐQTFPT dated member
July 07, 2022 9 Mr. Hampapur Independent April 07, 2022 06 out of 08 75%
BOD: 07 out of 07 Rangadore Binod board
members member
Observers: 10 Ms. Tran Thi Hong Linh Board April 07, 2022 06 out of 08 75%
Session 08 • Supervisory Board: 02 • Reporting on the third quarter’s results and projecting the member
November out of 03 member results of implementing the 2022 business plan.
23, 2022 • BOM: 02 out of 03
members Regarding succession planning, the BOD continuously and closely follows up on senior leaders’ planning and rotation
No resolution to be issued programs, aiming at solid leadership on all levels. FPT senior leaders have been rotated in all-around operating sectors
to gain more diverse experiences and improve their managerial capabilities. The rotation program is expected to foster
young, capable managers and leaders to become the core teams of FPT and its subsidiaries in the future.
Members of the BOD must participate in all meetings during the year, or at least one meeting a quarter, and have clear opinions
on each issue being discussed. In case of absence, the board members must notify the Chairman’s Office in writing.
08 100% 09 01
Number
Meeting
BOD Membership of Board
No Board member Position attendance
Commencement Date meetings
rate
attended
MEETINGS MEMBERS RESOLUTIONS FEMALE MEMBER
Being re-elected as a board member for
1 Mr. Truong Gia Binh Chairman 08 out of 08 100%
the term of 2022-2027 on April 07, 2022
03 05 01 01
Vice Being re-elected as a board member for
2 Mr. Bui Quang Ngoc 08 out of 08 100%
Chairman the term of 2022-2027 on April 07, 2022
According to the Resolution of the 2022 AGM dated April 07, 2022, there are seven members in FPT’BOD for the 2022-2027
tenure. It is for pursuing the diversity of professional experience and the number of independent/non-executive members The BOD currently has 03 independent members, accounting for nearly half of the total. The independent members
of the BOD whilst ensuring gender equality. Also, it delivers objectivity, professionalism, and efficiency of the BOD, include Mr. Jean-Charles Belliol, Mr. Hiroshi Yokotsuka, and Mr. Hampapur Rangadore Binod. The independent board
aiming at the sustainable development of the Corporation and the highest benefits for shareholders and other stakeholders. members have sufficient capabilities and expertise. They also meet the IFC’s definition of “independent members of
the Board of Directors ensure the objectivity in decision-making, especially in conflict of interest”.
No Board member Position/Work experience Ownership Concurrent positions in other • The BOD is diverse in knowledge and professional experience. All board members are experts in terms of finance, risk
percentage companies’ boards (As of December management, IT, legal, business administration, international experience, and business environment. Specifically,
31, 2022) there is one member with years of experience in the financial sector - Mr. Jean-Charles Belliol. There are also five
members with extensive experience in the IT field and one with a deep understanding of the investment industry
• Board member of FPT Telecom; and corporate governance.
• Chairman of the Members’ Council • Since 2013, FPT has separated the Chairman and the CEO roles to enhance the independence and division of
of FPT Education; responsibilities between the BOD and the BOM while ensuring decentralization in decision-making.
Chairman • Board member of FPT University;
1 Mr. Truong Gia Binh 7.01%
• A Council member of FPT IS (As of
34 years in the IT sector
March 25, 2021); Principle 04: Establish preparatory committees to assist the BOD
• Board member of Joint Stock
FPT’s BOD has established 03 committees to assist the BOD in implementing its responsibilities and supervisory duties.
Commercial Bank for Foreign
Trade of Vietnam.
• The Personnel and Remuneration Committee: The principal duty of the Committee is to handle policies regarding
Vice Chairman • Board member of FPT University; remuneration and personnel procedures for the Corporation and its subsidiaries. It supports the BOD in choosing,
2 Mr. Bui Quang Ngoc 1.96% proposing, appointing, dismissing, and conducting the performance evaluation of the members of the BOD, the
• A Council member of FPT IS (As of
34 years in the IT sector BOM, representatives, and other senior executives of the Corporation and its subsidiaries.
March 25, 2021).
• The Development Policy Committee: The Committee is responsible for making development proposals reporting to
• Board member of FPT City Danang
Board member JSC,; the BOD, and monitoring issues regarding the development strategies of the Corporation and its subsidiaries.
3 Mr. Do Cao Bao 1.13%
34 years in the IT sector • A Council member of FPT IS (As of • The Chairman’s Office: As a corporate secretary and a preparatory body of the BOD, it is responsible for supporting
March 25, 2021). the BOD and the Chairman to carry out their roles.
Independent board member • In addition, the Internal Audit Department under the BOD was established in 2022. The Internal Audit Department
supervises and evaluates the adequacy and effectiveness of corporate governance, risk management, and
4 Mr. Jean-Charles Belliol 30 years in business and 0%
internal control. The Department also monitors the performance quality in assigned responsibilities and makes
finance recommendations for improvement so that the goals and objectives of the corporation can be more efficiently met.
Independent board member
5 Mr. Hiroshi Yokotsuka 0%
28 years in the IT sector Principle 05: Ensure effective operation of the BOD
Independent board member
Mr. Hampapur The best measure of the BOD’s performance is the evaluation process and the amount of their remuneration. In detail,
6 Nearly 50 years in the IT 0% the BOD does the annual evaluation of the performance of the Board and all committees, understanding their roles and
Rangadore Binod
sector responsibilities to enhance operational excellence.
Board member The remuneration of the BOD, the Supervisory Board, the BOM, and other management roles is publicly reported in the
• Board member of Vietnam
Over 10 years in the field of Corporation’s Financial Statements and compliance with the Resolutions of the 2022 AGM.
7 Ms. Tran Thi Hong Linh 0% Hydro-Meteorological and
investment and corporate Environment Equipment JSC,.
governance
Regarding governance training, as of December 31, 2022, there were two members of the BO and the Supervisory
Board to gain certificates from corporate governance courses. Detail as follows:
• Mr. Nguyen Viet Thang – Head of the Supervisory Board of FPT Corporation.
The remaining members of the BOD, the Supervisory Board, and the BOM are continuously getting updates and
complying with the provisions of the law on corporate governance. Therefore, they are intended to join training
courses as soon as possible.
• Annually, the BOD approves business strategies and supervises the BOM’s execution of the set goals effectively.
5 Mr. Jean-Charles Belliol Board member 870,000,000
More information can be found in the BOD’s evaluation of the Corporation’s performance and the BOM’s activities
6 Mr. Hiroshi Yokotsuka Board member 1,758,750,000 on Page… of the Annual Report.
• In order to minimize risk, FPT’s risk management units are organized at corporate and subsidiary levels. It is
7 Mr. Hampapur Rangadore Binod Board member 1,758,750,000
decentralized, authorized, and coordinated into a unified and consistent system throughout the Corporation.
8 Ms. Tran Thi Hong Linh Board member 270,000,000 • In addition, the Internal Audit Department under the BOD was established in 2022 to ensure independence and
objectivity as well as add value and enhance overall operations.
Principle 06: Establish and maintain the corporate culture and ethics
Disclosure and transparency
FPT issued a Code of Conduct (in August 2004), a Professional Code of Ethics (in July 2003), Labour regulations
(updated in January 2020), and Protocols for Media Behaviour (May 2020) to apply throughout the Corporation. FPT always entirely, accurately, and punctually complies with regulations on information disclosure for listed companies.
The Codes & Regulations set the standards for professional behavior, ethics, and corporate culture while clarifying In addition, all disclosed information is regularly updated on the official website for stakeholders to get access.
the behaviors and activities that are/are not accepted in internal and external relations. In addition, the Internal
Regulations on Corporate Governance and the Operation Regulations of the BOD also got the approval of the 2021
Principle 08: Enhance the information disclosure activities of the Corporation
AGM. Those documentations clearly outline the ethics rules of reporting and publicizing benefits of board members.
• The Corporation is committed to transparency and equality in disclosing information to all shareholders and other
For the BOD, BOM, and employees to enhance awareness and compliance, all those rules and regulations were stakeholders. Accordingly, in 2022-2027 the Corporation did not violate any regulations on information disclosure.
disseminated throughout the Corporation via internal/external communication channels.
• The Corporation’s Investor Relations department and Information Disclosure Department are responsible for
publishing information entirely, accurately, and punctually, monitoring external communications to shareholders,
and archiving documentation following relevant legislation. As one of the 50 best-listed companies in Vietnam,
FPT constantly improves its shareholder and investor relations towards information transparency, compliance with
legal regulations, and protection of the legal rights of shareholders. In 2022, FPT organized 150 meetings with
domestic and foreign investors.
• 100% of disclosed information is accurately updated on the Corporation’s website and other means of communication
in Vietnamese and English under relevant law on information disclosure for listed companies. In addition, the
Corporation promptly discloses important business information via several channels such as the website, mass
media, and regular meetings with investors, journalists, and other related parties.
• In every investor meeting and the AGM, investors are entitled to give questions regarding the business operations
and get responses immediately from the senior leaders of the Corporation. In addition, the Minutes and Resolutions
of the AGM are entirely published on the Corporation’s website for shareholders and investors to acknowledge the
information proactively.
• Information about the ownership structure and operating model, details of significant shareholders, internal
shareholders, members of the BOD and the BOM, and transactions with stakeholders are publicly updated in the
Annual Report and the official website of the Corporation.
• Information on FPT’s environmental and social impacts and corporate social responsibility (CSR) activities are
announced and updated in the Corporation’s Annual Report.
• With the approval of the BOD, FPT issued the Information Disclosure Regulation in 2022 to meet the legal provisions,
disclosure standards as well as the demand for exploring and updating information about the operations of the
Corporation and related parties.
Receiving 114,670 shares from the ESOP 2021 and 160,398 shares from
0.28% from the ESOP 2022 for senior executives, and 520,358 shares
Receiving 117,774 shares from the ESOP 2021, 819,400 shares
Receiving 7,042 shares from the ESOP 2021 and 23,897 shares
0.23% from the ESOP 2022 for senior executives, and 412,581 shares
the stock dividend payment at the rate of 20%; selling 120,000 shares
shares from the stock dividend payment at the rate of 20%.
Principle 09: Establish a framework for the effective - While at the AGM, shareholders raised nine
exercise of shareholder’s rights questions to the Monitoring Committee
concerning the performance of the Corporation
and its subsidiaries. The Chairman, the CEO, and
• The Corporation paid full dividends to shareholders
other members of the Monitoring Committee of
following the dividend payment policy approved by
the AGM responded to shareholders’ comments at
13,500 shares
in chronological order. They accurately and
- Paying stock dividends of 2021 to shareholders at thoroughly recorded the opinions of shareholders,
the rate of 20%, closing on June 14, 2022. the number of votes, and the percentage of voting
for shareholders’ opinions on the AGM’s issues.
- Making the advanced payment of the first dividend
of 2022 in cash to shareholders at the rate of 10% • In 2022, FPT issued an additional 4,537,265 shares
of par value on September 12, 2022.
0.04%
Percentage
7.01%
0.20%
1.13%
0.01%
0.08%
1.96%
the end of the accounting
for employees with outstanding achievements in
Percentage Number of
1.13% 12,381,892
7.05% 76,937,201
1.98% 21,524,013
0.12% 2,475,490
0.13% 2,170,896
0.19% 3,122,149
with sufficient information about the time, location, day will be on May 9, 2032.
0.08% 842,389
0.01% 143,389
0.03% 421,372
shares
0% 20,000
period
meeting agenda, and registration. Furthermore,
in order to ensure the rights of shareholders • The Corporation ended its offering of 82,376 treasury
joining the AGM virtually, AI technology was shares to its employees on January 14, 2022, so up to
utilized to authenticate and identify shareholders now, there have been no treasury shares left.
automatically. Shareholders are identified by one
accounting period
being prudent and honest, avoiding conflicts of
that is used to open the securities account owing
interest, and devoting themselves to the highest
FPT shares); OTP verification sent via SMS/Email
294,806
Number of
shares
10,258,561
1,125,735
1,202,551
1,768,189
0
63,951,202
687,321
17,928,228
112,450
registered; OTP verification sent via internal
Also, they must exercise their rights, obligations,
emails of FPT’s employees.
and responsibilities in accordance with the Law on
- All notices, documents of the AGM, and power Enterprises, the Corporate Charter, the Corporate
of attorney in Vietnamese and English are sent Governance Regulations, and other internal
directly to shareholders via email or publicly regulations.
Supervisory Board
posted on the Corporation’s website 20 days
Chief Accountant
Chief Executive
Member of the
Vice Chairman
Vice Chairman
members are detailed in the Corporate Charter and
shareholders
with internal
Relationship
Head of the
periodically published in the six-month and whole-
Senior Vice
Senior Vice
Chairman
President
President
exercised their voting rights in direct voting year Corporate Governance Reports as well as the
Officer
or remote voting following the process of Annual Report.
summoning, voting procedure, the Corporate
Charter, and relevant legislation.
Do Cao Bao
No
10
6
9
4
5
3
2
7
1
86 2022 Anual Report Corporate governance | 87
88
Due to the parent-subsidiary structure, some board members and the CEO of the Corporation concurrently hold positions in the BOD/Members’ Council and the Supervisory Board of
subsidiaries. In 2022, FPT conducted regular transactions with its subsidiaries and other companies in which the Corporation holds control rights. Detail as follows:
Providing services,
• 0101601092 Transactions between the
FPT Cau Giay sharing costs and 01 174,330,919,415
Corporation and the related
• December 23, Building, Duy utilities
companies and individuals follow
FPT 2004 Tan Street, Dich
1 2022 Resolution No. 02.03-2021/NQ- Purchasing services 01 60,168,896,234
Software Vong Hau Ward,
• Hanoi Department Cau Giay District, HĐQTFPT issued on March 12,
Co,. Ltd. of Planning and 2021, and validated until other Making a loan 3,330,740,000,000
Hanoi, Vietnam
Investment Resolutions are issued
Paying the loan 3,192,740,000,000
Providing services,
sharing costs and 01 46,860,655,175
• 0104128565 Transactions between the utilities
22nd floor, Corporation and the related
FPT Keangnam Purchasing goods
• August 13, 2009 companies and individuals follow 01 154,765,403,651
Information Landmark 72 and services
2 2022 Resolution No. 02.03-2021/NQ-
System Co,. • Hanoi Department Building, E6 Pham HĐQTFPT issued on March 12,
Ltd. of Planning and Hung Street, Me Lending 171,825,000,000
2021, and validated until other
Investment Tri Ward, Tu Liem Resolutions are issued Making a loan 3,420,000,000,000
District, Hanoi
Paying the loan 4,030,000,000,000
Community
Stakeholders
public agencies
Partners, suppliers
Shareholders, investors
subsidiaries.
and investors.
Relationship with stakeholders
FPT’s commitment
Principle 10: Promote effective stakeholder engagement
of the Corporation. Anti-corruption and anti-bribery policies are also strictly followed up.
Corporate governance
Government, ministries, and Always accompany major national programs and projects, aiming for a mighty nation.
Create opportunities for each employee to demonstrate their skills and achieve success.
Provide timely and transparent information on the activities of FPT and its
customer needs and constantly improve the brand reputation and the quality of
in the latest financial statements. In 2022-2027 FPT did not detect any transactions that conflicted with the interest
| 91
The BOD also issued the resolution to manage transactions worth less than 35% of the Corporation’s assets recorded
the highest benefits to stakeholders. For stakeholders to speak up and/or lodge any complaints about possible
In 2022, together with ensuring stable growth in the face of complicated, unpredictable developments of Covid-19
and geopolitical uncertainties, the Corporation’s business activities were carried out with the principle of providing
Report of the Board of Directors
Overall evaluation The Policy Development Committee • In 2022, the Policy Development Committee strongly
promoted core projects focusing on Eating –
Learning – Working, as well as health caring aspects.
Based on the general regulations for the BOD’s activities and the Corporate Charter, the BOD promptly directed, closely • The staff rotation program has continued to be
Specifically, the Committee consulted their short-
supervised, and timely consulted the BOM to realize strategic objectives in 2022. successfully implemented to foster high-quality
term and long-term business goals, strengths, and
management roles and improve leadership
Strategic planning continued to be consolidated throughout the Corporation. Hence, critical targets and action plans weaknesses of those projects in order to improve
capabilities. As a result, there were about 200 senior
were implemented responsively, clearly, and consistently. the advantages and alleviate the weaknesses, saving
executives appointed and rotated. In the second half
time and costs for the Corporation.
of 2022, many senior management positions were
Inheriting previous years’ experiences and a high reputation in the regional IT industry, along with an extensive network
changed, assigned, and rotated in the Corporation • Objectives and Key Results (OKRs) methodology kept
of board members, especially independent members, FPT maintained its corporate governance transparency, thereby
and its subsidiaries, such as the Chief of Office, being strictly deployed throughout the system around
maintaining its position as one of the leading technology corporations in Vietnam and the world.
Chairman, Deputy CEO, Chief Technology Officer, and the globe. All employees engage in their OKRs and
Chief Financial Officer of subsidiaries. dedicate to the collective OKRs to accomplish the
Evaluation of the activities of the Committees • Realizing that work efficiency can only be enhanced
organization’s development goals.
as the capacity of line departments is improved, the • The Committee also focused on researching, advising,
The Personnel and Remuneration Committee program titled “Strengthening line departments’ and supervising new policies to improve labor
capacity” was vigorously and drastically productivity in FPT’s subsidiaries and avoid conflicts
Some activity highlights of the Committee: • Issuing an update of employee remuneration policies
implemented by the Committee. With support from of interest, ensuring governance transparency.
including: Establishing a business travel allowance
• Guiding the research and development of FPT’s HR the Policy Development Committee and the BOM, all
policy and the policy of increasing social insurance
strategy for the 2023-2025 period. line managers achieved initial success in promoting
allowance in 2022.
the critical roles of the departments. The Chairman’s Office
• Consulting the BOM on the research and development
• Developing and implementing specific remuneration
of the HR strategy for the period of 2023-2025, • 2022 witnessed the Committee’s active consultation Along with fulfilling the role of supporting the BOD
policies in subsidiaries in order to retain talent and
aiming at the growth objectives within the DC5-135 and proposals of new initiatives to adapt to the in professional activities, the Chairman’s Office
control the turnover rate: The procedure to support
strategy. socio-economic andpolitical situations. In the first also actively maintained and promoted external
house/car loans; The policy to increase earnings for
• Directing the implementation of programs on planning groups of employees in some specific departments. months of the year, the Committee focused on relationships with key partners to ensure business
and rotating senior leaders. policies and business orientations to deal with the continuity. Concurrently, the Office provided timely
• Developing, promulgating regulations, and implementing stressful situation of COVID-19 across the country. and accurate information disclosure of corporate
• Conducting programs on planning, evaluation, the signing of commitments to prevent conflicts of As soon as the pandemic peaked, the Committee governance resolutions and reports. Besides, the
appointment, rotation, and improvement of the interest; declaring activities that pose risks of interest discussed planning for business directions in the Chairman’s Office coordinated with other departments
senior leadership at the Corporation and its subsidiaries. conflicts for employees of Level 05 and above. post-Covid-19 period. In the second half of 2022, to organize the 2022 AGM in April 2022.
• Approving and leading the implementation of the • Developing, amending, and supplementing regulations seizing the opportunity of recovery, the Committee
staff rotation at all levels in 2022. on management of functional departments, realizing proposed recommendations to accelerate the
the goal of improving management capacity within development of the Corporation.
• Consulting the BOM to prepare the summary report of
the Corporation.
the rotation plan after two years of implementation.
• Orienting the issuance of HR key policies.
During 2022, FPT Corporation has continued its legacy of Throughout 2022, the BOD carried out the resolutions approved by
high growth performance, keeping the best interests of all its the AGM with high performance, making significant contributions
stakeholders intact. The overall growth of the company in hi-tech to the Corporation’s development and bringing benefits to
areas is indeed path-breaking, and in many areas, FPT is among shareholders and other parties, despite challenges, notably Covid.
the top few leaders in the industry. Even in areas of Telecom and The BOD, the BOM, and the functional directors had transparent
FPT University, we have seen considerable and sustained growth. and effective debates covering a wide range of topics: business
The management and employees of FPT are demonstrating and technology trends, as well as strategies, implementation
their confidence and commitment to clients even though the methods, finance, human resources, operations, and M&A.
marketplace is showing some signs of slowing down. Solely Furthermore, the BOD and BOM were ready to acknowledge the
keeping clients’ interests in mind, FPT has put sufficient power recommendations of independent BOD members on financial and
behind the strategies for the next few years, and now the actions investment activities as well as business targets for 2023 and the
are underway to execute the same with passion. Apart from medium-term strategy of the Corporation and its subsidiaries.
Business excellence, FPT Corporation and its leaders have also
shown that they have their hearts in the right place by taking
direct responsibility for the children orphaned during the tough
times of the covid pandemic. These actions are reflective of a very
responsible corporate citizen.
• The implementation of the Corporate Charter; Session 01 • Reviewing the BOM’s proposal to increase chartered capital for 03
Date subsidiaries, including FPT Software, FPT Education, and FPT Information
• The performance of the approved resolutions of the 2022 AGM to protect shareholders’ benefits; 03 out of 03 System, which was submitted in the Report prepared for the BOD meeting
January 19, 2022
on January 25, 2022;
• The transparency of the Corporation’s financial activities with the support of independent auditors;
• Reviewing the 2022 plan submitted by the BOM to the BOD;
• The implementation of functions, duties, and transparency of members of the BOD and the BOM regarding relevant
legislation. • Discussing and developing the operation plan of the Supervisory Board in
2022 (which has been the first year of the new term of 2022-2027).
The Supervisory Board members
• Evaluating the preliminary financial statements of the first quarter of 2022;
The Commencement/End Number of Meeting Reasons • Supervising the documentary preparation for the 2022 AGM prepared by
No Member Position date of being a member meetings attendance for the BOM;
of the Supervisory Board attended rate absence
• Supervising personnel duties in preparation for AGM (electing the BOD and
Commencement date: April Supervisory Board for the new term of 2022-2027);
12, 2012; Session 02
Date • Discussing and evaluating the supervision of the compliance with
Being re-elected as a member March 10, 2022 03 out of 03 regulations of the board members, the BOM members, and other
Mr. Head of the of the Supervisory Board (for
management positions in 2021 to prepare for the Report to be submitted
1 Nguyen Supervisory the term of 2022-2027) by the 04 out of 04 100%
to the AGM;
Viet Thang Board 2022 AGM on April 7, 2022;
Being re-elected as the • Discussing contents of the Supervisory Board report to be submitted to
Head of the Supervisory the 2022 AGM;
Board on April 8, 2022.
• Discussing the content of the 2021’s summary report and the proposed
Commencement date: April action plan for 2022 of the Supervisory Board.
Member 12, 2012;
Mr. 03 out of 03 • Electing the Head of the Supervisory Board for the term of 2022-2027: Mr.
of the Being re-elected as a member
2 Nguyen 04 out of 04 100% Session 03 (The newly Nguyen Viet Thang was elected with 100% of the votes;
Supervisory of the Supervisory Board (for
Khai Hoan Date inaugurated
Board the term of 2022-2027) by the April 08, 2022 Supervisory • Reviewing the 2022 action plan of the Supervisory Board submitted to
2022 AGM on April 7, 2022. Board for the the AGM;
Member Being elected as a member 2022-2027
Ms. Duong tenure) • Assigning tasks among members of the Supervisory Board.
of the of the Supervisory Board (for
3 Thuy 02 out of 04 50%
Supervisory the term of 2022-2027) by the
Duong • Reviewing and discussing financial data for the third quarter of 2022 sent
Board 2022 AGM on April 7, 2022.
by the BOM for the BOD meeting scheduled on November 23, 2022;
Being elected as a member of
the Supervisory Board by the • Reviewing the expected completion of business targets for the fourth
Ms. Member quarter as well as for the whole year of 2022 of the Corporation;
2017 AGM on March 31, 2017;
Nguyen of the
4 02 out of 04 50%
Thi Kim Supervisory • Planning to control overdue debts and inventories and limit financial risks
No longer a Supervisory
Anh Board Session 04 in 2022;
Board member as of April
Date 03 out of 03
07, 2022. • Assessing the impact of changes in exchange rates of Euro, Japanese
November 18, 2022
Yen against USD related to the business activities and loans regarding
Notice: exchange rates in 2022;
The 2022 AGM elected the new Supervisory Board for the 2022-2027 tenure. There were several changes in the
• Evaluating the validity of the issuance of preference shares to employees
Supervisory Board personnel since the AGM on April 7, 2022:
approved by the 2022 AGM.
- Ms. Nguyen Thi Kim Anh resigned from the Supervisory Board;
- Ms. Duong Thuy Duong was elected to join the Supervisory Board;
- Mr. Nguyen Viet Thang maintained his position to be Head of the Supervisory Board for the 2022-2027 tenure.
The 2022 results witnessed good growth. Total revenue was 44,010 billion VND, up 23.4% over 2021. Profit before tax Advance payment of remuneration and operating expenses of the Supervisory Board in 2022:
was 7,662 billion VND, an increase of 20.9% compared to 2021. These positive happenings offered cause for optimism
amidst the crisis currently threatening the global and domestic economies. Leading technology corporations • The advance payment of 1,248,000,000 VND was made, which was included in the total operating expenses of the
worldwide tended to slow down and accelerate product portfolio restructuring. Supervisory Board members approved by the 2022 AGM.
Early 2022 saw the rise of many new challenges, with many global uncertainties including post-Covid developments,
and the Russia-Ukraine conflict severely affected all countries’ trading abilities. The achievement of the above business Detail of remuneration and operating expenses of the Supervisory Board:
objectives was a great effort of the BOM and the BOD to closely and sensitively adapt in turbulent circumstances.
Type of operating expenses Approved budget (VND) Payment (VND)
The BOM aggressively managed business activities to exceed set revenue, profit, and EPS targets. Those are remarkable
points in the BOD’s and the BOM’s actions in 2022. 1 Outsourcing consultant services 100,000,000
2 Remuneration 1,248,000,000 1,248,000,000
Supervision activities for the BOD, the BOM, and shareholders
3 Travel expenses and per diem 75,000,000
The Supervisory Board attended all in-person meetings of the BOD during the year (04 sessions), carefully reviewing Total 1,423,000,000 1,248,000,000
proposals and resolutions approved by the BOD in the discussions.
Regarding issues of conflict of interest and complaints against members of the BOD and the BOM: In 2022, the Supervisory
Board did not receive any complaints about violations of the BOD, the BOM, and the Supervisory Board members.
The 2023 action plan of the Supervisory Board
The cooperation between the Supervisory Board, the BOD, the BOM, and the management team
Performing critical tasks prescribed by laws:
The Supervisory Board always received information in full about the business planning and implementation, which
was updated regularly before the BOD meetings throughout the year. • Monitoring compliance with the approved Resolutions of the 2023 AGM. The Supervisory Board considers it one of
its essential duties to ensure the best interests of shareholders;
In addition, the Supervisory Board cooperated closely and regularly with the BOM and the BOD to implement its
• Following up with the independent auditing firm to review the reports and oversee the implementation of matters
functional activities as well as when problems arose, especially when the Report on financial activities was disclosed
mentioned in their notes and the audit opinion letter (if any);
by independent auditors.
• Strengthening supervision over issuing BOD’s and BOM’s financial regulations, operational rules, and policy
Compliance monitoring regulations. Ensuring compliance with related legislations; evaluating the impact of the implementation of legal
rules on the interests of shareholders;
In 2022, the Supervisory Board did not record any abnormal signs in the management of the BOD, the BOM, and senior
• Promoting coordination with the Internal Audit Department (under the BOD) to promptly evaluate and handle arising
executive managers that affected or violated the legal regulations, the regulations of the Corporation, and the interests
incidents as well as supervise the handling during and after inspection.
of shareholders.
However, the coordination between the Supervisory Board and the Compliance Monitoring Board needed to be better
promoted. It is acknowledged and will be adjusted to develop a more specific and detailed coordinated action plan in
2023, resulting in a higher efficiency of financial safety control.
ESG Activities This report was published for the term of January 1 to December 31, 2022, within the Corporation and its subsidiaries
in Vietnam as well as other key markets and is based on the GRI Standards of the Global Reporting Initiative (GRI). In
preparation for this report, we cited the Guide to the Publication of Environmental and Social Information issued by the
Activity highlights State Securities Commission (SSC) in cooperation with the International Finance Corporation (IFC). Also, we referred to
the National Action Plan to implement the 2030 Agenda for Sustainable Development and “Our World Transformation:
Agenda 2030 for Sustainable Development”, which was adopted by the United Nations General Assembly in September
2015 (including United Nations’ 17-millennium goals towards sustainable development).
THE HAPPY WORKPLACE
The report was built on the principles of inclusiveness, clarity, relevance in current affairs, and reliability.
TOP 100 42,408 3,414,168 The report was carried out by the Marketing & Communications Department of FPT.
BEST PLACES TO WORK IN VIETNAM STABLE JOBS HOURS OF IN-HOUSE TRAINING For any inquiries or feedback related to FPT’s sustainable development activities and the ESG report, please contact:
WITH A COURSE COMPLETION
RATE OF UP TO 99.6% Ms. Mai Thi Lan Anh – Deputy Director of Marketing and Communications, FPT Corporation
Address: No. 10 Pham Van Bach Street, Dich Vong Ward, Cau Giay District, Hanoi
200 11 Cities
Sustainable
and 12 Responsible
Consumption 13 Action
Climate
14 Life
Water
Below
15 Life
Land
on
COVID-19 ORPHANS TO ENTER Communities & Production
THE HOPE SCHOOL
16 Peace and
Justice Strong
Institutions
17 toPartnerships
achieve
the Goal
• 14 provinces and cities cooperated with FPT on promoting comprehensive digital Constantly providing • The Corporation continued the policy to encourage in-house “start-ups” so that
Promoting strategic transformation. opportunities and the developers of a successfully commercialized solution.
consultation services; challenges at work;
• Combining efforts with large enterprises such as Ba Huan, Thien Long, Tan Long, • Product would be entitled to 10-20% of the product’s earnings.
Moving upwards to higher promoting R&D activities
Flamingo, An Gia, Vinaseed, Coteccons, EVNGENCO1, and so on to promote digital resulted in highly • In 2022, there were 1,112 initiatives of in-house start-ups implemented. In the
stages of the technology
transformation. innovative technological past six years, with the iKhien - FPT Innovation Award, which aimed to promote
service value chain
solutions and products employee creativity, there were 3,707 initiatives deployed.
• 01 billion USD in sales from overseas markets.
• The Made by FPT ecosystem with more than 200 products, services, and solutions. Carrying out the human • In 2022, training programs were widely deployed throughout the Corporation, with
Investing in R&D for new resource development plan over 3.4 million learning hours and up to 99.6% completion rates.
• Base.vn gaining 8,000 corporate customers. following the Corporation’s
products, services, and • Spending on in-house training was recorded at 130 billion VND, up 32% over the
solutions on par with goals and strategies same period in 2021.
• Launching the first line of microchips Internet of Things (IoT) devices for medical
cutting-edge technologies care, realizing the dream of manufacturing semiconductor components created
through Vietnamese ingenuity. Implementing insurance and FPT always focused on developing a competitive, comprehensive remuneration policy
welfare regimes in line with that covers all employees and their families equally and transparently, ensuring they
Enhancing FPT’s brand • The Corporation retained its leading position by achieving numerous domestic and the regulations receive earnings commensurate with their performance and contribution to the
reputation international awards in terms of governance, business, and technology, such as the organization. Performance evaluations were conducted regularly and fairly based on
Top 3 Vietnamese Publicly Listed Companies on ASEAN’s CG Score List, the Top 15 the “Do more - Get more” criterion.
enterprises with good financial management capacity, Asia’s Outstanding Companies,
The enterprise with outstanding contributions to the ICT industry in Vietnam, The FPT regularly organized employee engagement activities to spread love and promote a
Gold Award and Top 10 Excellent digital products for the digital economy... Enhancing corporate healthy lifestyle, including FPT Photography Club, FPT Artists Association, Arts Festival,
cultures and core values FPT Village Festival, Running Club, Football Club, Sports Festival, FPT Day for the
Community, Parents’ Day...
Shareholders and investors
Government agencies
Activity highlights 2022 results
• In 2022, FPT sponsored and co-hosted 13 key events under the theme of
The Corporation kept improving the efficiency of corporate governance and
digital economic development, promoting the Vietnam digital economy and production management to ensure customer satisfaction, enhance competitiveness
Developing and applying
enhancing the reputation of Vietnam’s IT industry globally. and bring sustainable benefits to stakeholders. In 2022, the governance model
working and behavioral
of objectives and key results (OKRs) continued to be leveraged as an internal
• Gaining 01 billion USD in sales from overseas markets, affirming Vietnam’s standards while
management tool to realize the goal of digital transformation and improve labor
brainpower and intelligence on the international stage. FPT was awarded a communicating with partners
productivity. In addition, FPT’s overall activities and specific operations in each core
certificate of merit from the Ministry of Information and Communications for field were well-recognized with prestigious international standard certifications.
this achievement.
• Regarding the government customers, FPT signed comprehensive digital
• At the “Make-in-Vietnam” Awards ceremony, two products of the Made by FPT transformation cooperation agreements with 14 provinces and cities in 2022.
Enhancing the reputation of ecosystem were honored. Specifically, FPT Cloud - The next-generation cloud
Vietnam’s IT industry computing solution - won the Gold Award, and FPT.eSign - The remote digital • With the corporate customers, FPT joined hands with large enterprises such
signature service - won the Top 10 “Excellent digital products for the digital Building long-term alliances as Ba Huan, Thien Long, Tan Long, Flamingo, An Gia, Vinaseed, Coteccons,
economy”. with its partners through EVNGENCO1, Gas South, etc.
industry, geographical area,
• 12 digital platforms and solutions in the Made by FPT ecosystem of • With the SMEs, the business management platform Base.vn earned 8,000
and market sectors
comprehensive digital transformation products were recognized under the new customers.
2022 Sao Khue Awards - the most prestigious award in the software and IT
sector hosted by the Vietnam Association of Software and IT Services (VINASA). • For individuals, customer service and service experience were continuously
They included FPT Cloud, FPT.eSign, FPT Digital; the virtual shareholder enhanced with the support of Chatbot, Voicebot, AI, and other technologies.
meeting solution; UBot - the business process automation solution using
RPA; the Foxpay e-wallet; etc.
• Within the agenda of Smart City Summit 2022 organized by VINASA, the
Khaothi.Online software developed by FPT IS was recognized as a Smart Press and media agencies
Education Solution.
Activity highlights 2022 results
Regularly and proactively • Providing valuable and helpful information to stakeholders, allowing public
Community
providing information to the acknowledgment of various topics, from business know-how and new technology
press and media through FPT trends to the Corporation’s performance and development orientation.
Activity highlights 2022 results
newsletters, press releases, press • Providing analysis and evaluation on the development of the domestic ICT
• Sponsoring 171 billion VND in CSR activities, bringing the most practical values to conferences, and PR/IR articles industry and global trend forecast, delivering a comprehensive industry overview.
Joining efforts with the 47,777 people nationwide.
community to overcome
• Donating 2,138 units of blood.
challenges toward a better life
• Giving 100 Happy houses.
• Welcoming the first 200 students to enter the Hope School in the academic year of
2022-2023.
• Constructing 250 bridges in rural areas for students.
Implementing scholarship
• 12,509 scholarships were awarded to young talents nationwide with a total value of
programs to support
more than 125 billion VND.
young talents
• Developing VioEdu - the Edtech solution with 15 million users and the only virtual
platform that integrates teaching and learning tools to serve students, teachers,
and school managers.
• Khaothi.Online is the product suite that comprehensively supports the digital
transformation of individual competence assessment and certification according
Enhancing ICT in education
to the ISO/IEC 17024:2012 standards. The software has been promoting the
and social activities and
deployment of smart education in various localities across the country.
promoting innovative
knowledge and technology • 2022 marked the 15th year of Violympic – the online competition in mathematics
throughout the community and physics for students nationwide. As one of Vietnam’s first mathematical
playgrounds on the Internet, Violympic quickly received the enthusiastic support
of millions of participants. Notably, the number of students joining the game has
increased significantly on an annual basis. In 2022, the number of participants was
64,569, including 7,455 primaries to high school students who won prizes in Math
in English, Math in Vietnamese, and Physics.
Some major environmental activities of the Corporation and its subsidiaries in 2022
Step 2: Identifying critical issues of interest to the parties.
• Carrying out Environmental impact assessment reports for all projects following the Law on Environmental Protection
• Selecting critical issues of interest to the parties according to four contents, including: Reducing negative 2020, effective January 1, 2022; Decree 08/2022/ND-CP detailing several articles of the Law on Environmental
Covid-19 impacts on FPT and the community; Promoting National Digital Transformation; Investing in the Protection, effective January 10, 2022.
education of the young generation; Environmental protection activities.
• Organizing the collection, classification, storage, transportation, and treatment of all household solid waste,
Step 3: Evaluating critical issues in the relationship with stakeholders. industrial solid waste, hazardous waste, and other types of waste in accordance with the provisions of Decree No.
38/2015/ND-CP and Circular 36/2015/TT-BTNMT.
• Designing the matrix of issues.
• Selecting critical issues. • Managing and operating the collection and treatment of effluents to ensure that the wastewater generated during
the project’s operation is treated before being discharged back into the environment according to applicable
technical regulations on wastewater (QCVN 14/ 2008/BTNMT).
Based on the above principles and identification process, FPT selected four key issues, focusing on developing and
implementing suitable action plans to ensure stable economic growth and practical values for stakeholders. Below are 04 • Implementing measures to prevent and minimize negative impacts and respond to environmental risks and
critical issues in FPT’s ESG activities: incidents; deploying periodical environmental management activities; archiving data and sending it to the local
• Promoting a green environment. Natural Resources and Environment department for inspection and supervision.
• Creating happy workplaces.
• Accompanying the development of the community.
• Managing for sustainable development results.
Energy savings
Focusing on building a green work environment • Increasing the use of natural energy/water sources, such as solar energy, groundwater, and rainwater.
With offices and buildings across the country, FPT has always been aware that green offices not only help efficiently save
• Reducing GHG emissions by decreasing energy consumption in FPT’s office buildings nationwide.
energy and reduce office operating costs but also create creative workplaces, thereby promoting sustainable growth.
• Using smart energy and water control systems.
Additionally, when investing in office buildings, FPT always conducted Environmental impact assessment reports
and complied with the laws and regulations on environmental protection, energy consumption, and waste/emission • Monitoring monthly electricity consumption.
treatment. We also prioritized new technologies and eco-friendly materials, making the most of natural energy sources
to minimize negative environmental impact, energy consumption, and discharge. • Cleaning the heat exchanger rigs and the air-cooled hot rigs periodically, avoiding dust and dirt that may reduce the
heat transfer capacity.
FPT’s educational campuses and software parks in Hanoi, Da Nang, Binh Dinh, Ho Chi Minh City, and Can Tho were
constructed using the campus model with office buildings integrated with entertainment areas, green spaces, and • Maintaining failures to avoid any energy losses timely.
landscapes. They included F-Ville Software Village in Hoa Lac Hi-Tech Park (Hanoi); FPT University in Hoa Lac Hi-Tech
• Replacing the use of water heaters with centralized solar water supply centers.
Park (Hanoi); FPT Complex in FPT City Urban Area (Da Nang); F-Town in Thu Duc Hi-Tech Park (HCMC)….
• Having skilled maintenance technicians to adequately operate the air conditioning and ventilation systems and
Many of them were highly praised by domestic and international organizations for green architecture prioritizing
enhance energy efficiency.
energy efficiency.
• The F-Town 3 campus was classified as one of the trio of typical constructions of Bioclimatic architecture by
Wallpaper - The leading British magazine on architecture, art, and fashion. The construction style and design took
full advantage of natural resources to provide a comfortable and convenient living environment. More than 40% of
buildings include open spaces. In addition, no corridors require energy using air conditioning.
• FPT Complex (Da Nang) was awarded the EDGE (Excellence in Design for Greater Efficiencies) by the Ministry of
Construction and the World Bank based on achieving savings of at least 20% in all three criteria: energy, water, and
materials.
• FPT University Alpha Building (Hoa Lac Hi-tech Park, Hanoi) was honored in the Future Education category at the
World Architecture Festival and won first prize at the Green Architecture competition organized by the Vietnam
Association of Architects for the use of green materials and energy utilization.
The electricity consumption in 2022 was higher than in 2021 due to the significantly increased number of employees Oil consumption of FPT’s facilities:
returning to work as the pandemic, and remote working policies ended. Therefore, there were some fluctuations in
power consumption in some facilities. However, most buildings had high stats due to regular usage demand.
2021 2022
Location Construction
Oil (Liter) Oil (Liter)
Electricity consumption of FPT’s facilities:
FPT Pham Van Bach 1,650 1,800
2021 2022 FPT Duy Tan 1,600 1,900
Location Construction
Electricity (KW) Electricity (KW)
Hanoi F-Ville 1 1,020 1,295
FPT Pham Van Bach 4,097,471 6,496,700
F-Ville 2 1,655 2,130
FPT Duy Tan 12,159,900 23,635,300 FPT University (Hoa Lac Hi-Tech Park) 100 150
Hanoi F-Ville 1 1,622,400 1,698,608 FPT Complex 8,560 9,512
Danang
FPT Massda 1,200 2,400
F-Ville 2 2,937,700 3,091,500
F-Town 1 v& F-Town 2 1,352 1,553
FPT University (Hoa Lac Hi-Tech Park) 2,429,100 4,680,940 HCMC
F-Town 3 850 1,320
FPT Complex 6,022,456 6,823,428
Danang Tan Thuan 1 470 610
FPT Massda 937,866 1,063,500 Tan Thuan 2 415 400
F-Town 1 & F-Town 2 15,235,862 19,854,968
Can Tho
FPT University Can Tho No need for electric generators
F-Town 3 20,588,796 22,579,591
HCMC Total 18,872 23,070
Tan Thuan 1 26,028,284 32,244,490
FPT Pham Van Bach 51,461 64,836 Oil (Liter) 18,872 23,070 0.79 0.97
F-Ville 2 Well water Well water Indoor air quality in the workplace
FPT University (Hoa Lac Hi-Tech Park) 101,658 135,125 Air pollutants, such as CO, SO2, NO2, PM2.5, PM10, Ozone, and so on, can cause serious health problems. Employees
are the most valuable assets an organization has. So, in parallel with creating an ideal work environment to develop
FPT Complex 74,595 80,038 employees to their full potential, the Corporation paid much attention to monitoring and controlling the air quality in the
Danang workplace. This activity helped maintain a safe and healthy environment for employees, improving their performance,
FPT Massda 11,148 12,022
enhancing corporate reputation, and reducing legal risks related to occupational health and safety.
F-Town 1 v& F-Town 2 20,617 26,411
For example, at the headquarters of FPT, we conducted the air quality measurement from December 16 to 21, 2022.
F-Town 3 31,418 44,448 Accordingly, the recorded indicators were lower than the national technical regulations. In particular, no CO was
HCMC detected in the air.
Tan Thuan 1 4,585 3,615
With 47% of the workforce being Gen Z, the young generations will increasingly become the central workforce with
differences and potential in the coming time. FPT is committed to being an attractive workplace for them to learn and
dedicate themselves to.
Creating happy workplaces
Diversity in culture, nationality, ethnicity, age, and education
As of December 31, 2022, FPT’s human resource scale in 29 countries and territories increased by 14.1% over the same
period, reaching 42,408 employees. FPT’s workforce continued to be rejuvenated by recruits with an average age of 28 (compared to an average age of
30 in 2020). The proportion of employees under 30 accounted for 60% of the total workforce. The above-50-year
The technology sector continued to play a significant role with 28,533 employees, accounting for 67.3% of the total proportion merely accounted for 0.9% of the team. Moreover, 80% of personnel had undergraduate and graduate
workforce, up 18.6% over 2021. It was also the core force that contributed to expanding the Made by FPT ecosystem degrees. Besides this, the number of managers under 40 years old accounted for 71% of the total managerial positions.
and creating a new growth engine for the Corporation in the long term.
As a global technology corporation, FPT not only grew the scale of operations but also increased the use of local
FPT’s workforce by operating sectors (including the total workforce of 08 subsidiaries) workers and experts in order to gain a competitive advantage and a deeper insight into the local business culture.
Therefore, FPT’s workforce constantly expanded in terms of nationality and location. As a result, as of 2022, there were
Sector Number of employees (people) Proportion (%) 42,408 employees in 29 countries and territories, including 1,681 foreigners with 52 different nationalities, such as
USA, Japan, Germany, UK, France, Slovakia, Philippines, India, etc., up 27% over the same period last year.
Technology 28,533 67.3%
FPT had 3,618 employees working in Asia, Europe, and America, mainly in Japan. With diverse human resources working
Telecommunications 9,478 22.3% worldwide, FPT was promoting the wisdom of a diverse workforce on a global scale, contributing to the sustainable
growth of the Corporation.
Education, Investment, and Others 4,397 10.4%
Promoting in-house training Along with the commitment to building high-quality human resources for FPT and the national economy, the
Corporation offered educational services to hundreds of thousands of students from high school to graduate levels in
Technology requires constant change and creativity. Hence, FPT built generations of employees who constantly the FPT Education system in the past year.
learned and strived to meet the requirements.
Besides, FPT has always focused on gaining young, logical, and creative talent in its recruitment process. In fact, they
With the orientation of making FPT a learning organization, developing a highly qualified workforce, and being well-organized have been creating a positive motivation for the working environment, meeting the increasing needs of functional
toward a long-term vision of human resource management, FPT always put people at the heart of its development departments, and potentially joining the management team. In addition, FPT organized fresher and intern training
strategy, designing various training activities. programs every year to provide advanced technical knowledge and skills, practical work experience, and new and
exciting chances for young talents to unleash their ability. With an increasingly large staff size and double-digit growth
All employees of level 2 and above must attend the annual training programs of the Corporation or complete at least one rate, FPT will continue to promote the incubation and nurturing of young talented workers and future successors in
course in MOOC (Massive Open Online Course) platforms. In 2022, training programs were widely deployed throughout the coming time.
the Corporation, with over 3.4 million learning hours and up to a 99.6% completion rate. It was also the first year that
FPT deployed in-house training for the entire subsidiaries on Udemy - the world’s largest online learning platform. Typically, FPT Software Academy was the training program for professional developers of FPT Software (FPT’s subsidiary)
for all students in the IT sector across the country. FPT Software Academy offers career opportunities and a professional
In addition, the “Master-Disciple” programs continued to be actively maintained, achieving a remarkably high ‘active’ training environment according to international standards, with the mission of providing and training high-quality
rate and many participants. Specifically, the Master-Disciple program had nearly 2,000 hours of activity with a 88% technology human resources to work on major global projects. It is the starting place for the success of leading IT
active rate, 200 masters, and almost 1,400 disciples. Furthermore, as a big tech in Vietnam, FPT always encouraged engineers in the future, responding to the strong development of the Corporation. The Academy has more than 5,000
and invested heavily in training and education to improve technological capabilities by increasing the total number of young IT trainees annually. Expanding to 37 offices in 16 countries, it also partners with nearly 70 universities, institutes,
technology certificates to 8,712. To achieve these impressive results, FPT spent more than 130 billion VND on internal and colleges nationwide in developing internship training and career orientation programs for students.
training activities during the year, up 32% when compared to 2021.
In addition, the Corporation paid tremendous attention to nurturing all levels of management by boosting MiniMBA Competitive remuneration and benefits policies
courses in Vietnam and abroad. It also provided capacity-building courses exclusively to middle managers, with
more than 16,000 hours of learning in 2022. MiniMBA is the training program for potential high-quality staff among Adhering to the provisions of the labor law
FPT’s subsidiaries. MiniMBA shortens and distills the quintessential content of the MBA program, organized by FPT
Corporate University in collaboration with the FPT School of Business & Technology (FSB). The program aims to help The context of economic fluctuations in 2022 even resulted in some staff cuts in leading global tech giants. However,
learners consolidate core management knowledge as well as systematize essential and professional management FPT maintained stable jobs and employee income and complied with the Labor Code thanks to its ability to ensure
skills for modern business management and corporate governance. It also helps improve their capacity, leadership, business continuity and excellence in productivity.
and business network development through the multi-dimensional exchange of experiences.
FPT is one of the few Vietnamese enterprises with unique corporate cultural values, which create a distinctive
The core staff training program helps young talent hone their knowledge and skills and to improve their leadership and advantage in attracting talent and enhancing cohesion among staff members and between them and the Corporation.
management capacity to become the next generation of FPT leaders. With the philosophy of providing each member with a great personal and professional life and the best conditions to
grow, FPT is committed to a fair, transparent, diversified, and inclusive work environment based on gender equality in
recruitment, employment, training, payment, remuneration, reward, and promotion, social insurance, health insurance,
In-house training in 2022 unemployment insurance, working conditions, labor safety, working hours, rest time, and other welfare regimes.
Furthermore, no discrimination or use of forced labor or child labor is involved in any production and operations
No Indicator 2022 activities at FPT.
1 Training budget (billion VND) 129.8 Over the past 35 years, FPT has strictly complied with employment law to protect employees’ rightful benefits. 100%
of employees participated in the collective labor agreement.
2 Number of courses (course) 6,236
Undoubtedly, employees are the core power that brings enterprises to new levels and achieves strategic goals in business.
3 Training sessions (session) 676,127
The Corporation will continuously renew remuneration policies and enhance employee experience in the coming time.
4 Number of training hours (hour) 3,414,168 FPT will provide comprehensive care for employees and their families by practicing the employee-centric orientation.
FPT always focused on developing a competitive, complete remuneration policy that covers all employees and
5 Training sessions per capita (session/person) 16 their families equally and transparently, ensuring they receive earnings commensurate with their performance and
contribution to the organization. Performance evaluations were conducted regularly and fairly based on the “Do more
6 Training hours per capita (hour/person) 81 - Get more” criterion.
7 Number of technology certificates (certificate) 8,712 FPT’s remuneration policy includes three components: Salary by job title, Bonuses based on individual performance
and contribution, and other allowances.
Salary by job title: Based on salary survey reports of some reputable HR consulting firms globally and adjusted
according to the specific position. It must align with the development of the Corporation and labor market, as well as
the inflation rate in Vietnam. In addition, employees also receive the 13th-month Bonus paid for New Year.
FPT Innovation Award - iKhien is an annual award to honor practical innovations that go into long-term operation Physical and mental health care
and encourage the spirit of creativity and innovation among staff. The program has been continuously implemented
for several years, helping us yield Onethe creative potential of our people. Moreover, those initiatives under the FPT Promoting physical and mental wellbeing to employees
innovation award were not only to be internally used but also for commercialization and making a social impact.
The Corporation has always nurtured the startup and innovation desires from the very first day of its establishment.
FPT is one of the few Vietnamese enterprises with unique corporate cultural values, which create a distinctive
Startups under FPT must go through four stages: ideation, experimentation, development, and maturity. On its part, advantage in attracting talent and enhancing cohesion among staff members or between them and the Corporation.
the Corporation facilitates creative ideas thanks to creative DNA - the tech spirit in FPT’s culture and internal initiatives
that encourage creativity, such as Innovation Day, Hackathon, ikhien, akaDay. In addition, FPT also tries to find external The Corporation regularly organizes activities to promote employee engagement and improve their spiritual health,
ideas and attract talented personnel. preserving its unique corporate culture.
Remarkable numbers about startups and innovation at FPT included 3,707 ideas and more than 350 billion VND of • Cultural and sports events include The Company Anniversary Ceremonies (September 13) with a Sports Festival & an
investment in creative ideas. In addition, some of the products had impressive user communities. One being mentioned STCo Performing Festival, the Ancestor Memorial Day (March 10 of the lunar calendar), the Parents’ Day (November 19),
was the FPT AI platform with more than 600 million end users, FPT akaBot with over 3,000 customers in more than 20 FPT Small, FPT Village Festival (on the occasion of Lunar New Year), International Women’s Day (March 8), Men’s Day
countries, Base.vn with up to 8,000 corporate clients. (November 11), etc.
FPT’s dramatic development and leading position resulted from the entrepreneurial spirit that forged FPT’s people for • It established associations and clubs to influence employee wellbeing and increase physical activity, such
nearly 35 years. as the Photographic Association, the FPT Small’s Parents Association, the Union Football Association, the
OKRs and ambitious objectives Artists Association, Music Club, Dance Sport Club, Homemade Club, the Table Tennis and Pool billiards Club,
Love Connection Club, Photography Club
OKR methodology, tied to the terms of “Leng keng” (which means “Think Big”), “Exceptional results”, “Doing things
differently”, has gradually been harmonized with the enthusiasm and ambition of all staff for years. Setting individual • Internal cultural publications, such as FPT Chronicles (Vietnamese: Sử ký), FPT Brief History (Vietnamese: Lược sử),
OKRs quarterly allows the detailed measurement of the results by specific indicators and products while making Chungta.vn internal newspaper, daily internal newsletters, technology newsletters, Fun4Fun shows, and so on, were
a considerable contribution and closely related to performance indicators and action plans of the company or the maintained to provide a better understanding of corporate history and core values.
department during the period. This has been the driving force behind FPT’s remarkable achievements and new • In order to raise awareness and stimulate kindness in the workplace, many community movements were organized
records. To punctually recognize the contribution and encourage the completion of OKRs, FPT quarterly honors the annually on Community Day (March 13), attracting thousands of attendees. The Corporation also encouraged
Top 13 employees with the best OKRs. employees to contribute one day’s wages to promptly support the community and even their colleagues when
experiencing difficulties.
FPT also paid attention to activities to improve the physical health of employees. It was spending thousands of billions of
VND on comfortable and classy campuses and offices with numerous utilities, serving the needs of work - entertainment
- study - accommodation, including outdoor sports areas, gym & yoga centers, swimming pools, cinema rooms, relaxation
areas, residential areas, libraries, restaurants & green spaces.
To promote OKR and honor outstanding individuals, one of the motivated activities was the Dinner Party with FPT It inherits all the strengths of the previous versions and even leverages them to the next level, which enables the
expansion of healthcare solutions toward telemedicine and smart healthcare. FPT.eHospital 2.0+ is being deployed
Chairman. Quarterly, FPT Chairman Truong Gia Binh will invite 13 employees with the best OKRs among subsidiaries
to more than 300 hospitals in Vietnam, serving about 50 million annual medical visits. It significantly improves
to a dinner at his house. If not living and working in Hanoi, the individual will be covered for all travel expenses by the administrative procedures and reduces cumbersome processes at hospitals, improving the quality of medical
corporate budget. examination and treatment and enhancing experience and convenience for people. Various hospitals and clinics
were effectively using FPT.eHospital 2.0+, such as Cho Ray Hospital, Bach Mai Hospital, National Children’s Hospital,
With the desire to create an open space for Generation Z - which accounts for 47% of the total workforce - and to
Huu Nghi Hospital, National Otorhinolaryngology Hospital, Tokyo Medical University Hospital, T-Matsuoka Medical
nurture young talent and promote FPT’s employee qualities, the Corporation initiated the series of events specialized center... During the Covid-19 period, in order to join forces with localities in pandemic prevention and economic
for Gen Z called “Zenerations – The Future of the Workplace”. In 2022, within the framework of the series, there were recovery, FPT deployed the solution for free in more than 36 field hospitals across the country and also sponsored
three seminars & game shows deep diving into multi-dimensional perspectives on Gen Z. These valuable insights other systems, such as F0 Home Care or the Covid-19 prevention virtual assistant.
helped build the most suitable work environment for young people to unleash their creativity and potential. The series
attracted more than 100 leaders, managers, and thousands of employees to attend virtually and in person. • Digital Citizen App
The Digital citizen app (Vietnamese: Công dân số) provides an ecosystem of applications and utilities to serve
people’s lives better, becoming a helpful interaction channel between local authorities, people, and businesses.
Putting citizens and businesses at the center, the application allows easy access to information, narrowing the
gap between the government and individuals. Moreover, easy access to information and feedback and promptness
in handling complaints enhances the relationship between people and the state, thereby creating disruptive
developments in the new situation.
Built on the latest technologies, including Big Data, AI, Machine Learning, IoT… the app fully ensures the functional,
performance, and security requirements. It was used in Tra Vinh, Can Tho, Binh Dinh, Nha Trang...
VioEdu is the Edtech solution with 15 million users and the only virtual platform that integrates teaching and learning
• Hope School
tools to serve students, teachers, and school managers. Due to vivid graphics and the gamification methodology,
The 2022-2023 Opening Ceremony marked the first academic year of more than 200 students from 41 provinces VioEdu excites learners with its good content. In addition, AI and Big Data allow the app to point out students’
under one shelter named “Hope School”. The school’s founding members cherished the wish that those youngsters strengths and weaknesses and suggest an improvement roadmap with 95% accuracy.
would gradually feel the love of the whole society, motivating them to grow up. During the two years of Covid-19, VioEdu supported thousands of schools in deploying virtual classes and
As the school’s name implies, “Hope” was not only a place for students to get comprehensive education and assessment sessions quickly and synchronously. In March 2020, VioEdu received a Certificate of Merit from the
development. Above all, it was a home filled with warm love for the children who have suffered from the Covid-19 Ministry of Education and Training for its contributions to the education industry during the pandemic.
pandemic. By the end of 2022, there were 40 local departments of Education and Training accompanying VioEdu to organize
In addition to the internal resources of FPT Corporation and other founding members, the Hope School received competitions for their students. After three years of launch, the system recorded 15 million users and 1.8 million
the help of numerous organizations and enterprises. In addition, the subsidiaries of FPT Corporation regularly had active accounts.
practical support activities on school facilities and learning materials, such as free Internet access, high-quality
• Violympic
laboratories with complete equipment to practice robotics and electronics, sewing rooms, and wood shops. They
also delivered soft skills courses and vocational guidance by visiting the work environment of programmers at FPT 2022 marked the 15th year of Violympic – the online competition in mathematics and physics for students nationwide.
Software. Based on the results and validity of the national finals, 7,455 students out of 64,569 participants won prizes in three
subjects: Math in English, Math in Vietnamese, and Physics. More specifically, 814 students won the gold prize;
• The “Light up the school” program
1,347 students got silver prizes; 2,149 students won bronze prizes; and 3,145 students won the Consolation prize.
In April 2018, the “Light up the school” (Vietnamese: Ánh sáng học đường) program was launched with the desire From an online math competition in Vietnamese, Violympic expanded to Math in English and Physics. From the
to mobilize social resources to expand access to educational opportunities for students. The program aimed to scale of 40,000 students participating, Violympic has become the playground of nearly 40 million students in 63
improve educational facilities by building new schools, boarding houses, toilets, and playgrounds and equipping provinces and cities nationwide, with almost 100 million practice sessions recorded annually. At times, Violympic
teaching and learning equipment for students in remote areas and localities affected by natural disasters. Up to received more than 300 million visitors/month with 200,000 simultaneous visits.
now, there were 93 schools built or renewed, and 464 classrooms, public service rooms, boarding houses, and
toilets renovated. It is estimated that more than 16,000 teachers and students benefit from this program.
Connecting the happy community
• The “Give wings to your dreams” program
• FPT Day for the Community
Almost every year, FPT employees set foot in the highlands to help those in difficult circumstances. Practical gifts
are expected to help children in upland areas keep their passion for words and books and sow seeds of hope for a Since 2010, March 13 has been chosen as “FPT Community Day” for employees to participate in social contribution
bright future. Sustained by the determination and efforts of FPT employees, the program called “Give wings to your activities. The Day has gradually become one of the humane cultural identities of FPT employees. In order to spread
dreams” is one of the largest and longest-established CSR activities dedicated to disadvantaged children in upland kindness and engage each employee in volunteering activities to support disadvantaged groups in society, FPT
areas. In 2022, estimated 9,377 students benefited. In addition, 16,901 awards, including computers, bookcases, encouraged employees to contribute at least one day’s wages to the FPT Fund for the Community.
and learning equipment... were given to schools and students
• The “Step up to school” program
• FPT Centre for Young Talents (FYT)
Launched in 2018, the program called “Step up to school” (Vietnamese: Nâng bước em đến trường) helps build
To facilitate the comprehensive development of talented young students across the nation, FPT Centre for Young concrete bridges in the Mekong Delta provinces. In addition to keeping children safe, the program also enhances
Talent (FYT) provides scholarships for students with distinguished academic achievements as well as national quality of life and improves social security for local people. By 2022, 250 solid bridges were constructed in the
and international awards every year. Currently, the Center has nearly 600 members. Many FYT members became Southwest region, based on the cooperation of local leaders and people and especially the participation of youth
influential founders, managers, scientists, and experts in Vietnam and globally. In 2022, 33 scholarships were union members and farmers with tens of thousands of working days.
granted to young talents, with a total spending of 276 million VND. In addition, with FPT’s support of costs and
material facilities, FYT members were encouraged to pursue their aspirations, exchange ideas, be inspired, and at Concrete and reinforced “Hope” bridges gradually replaced temporary, wooden, and degraded bridges. Bridges
the same time, improve soft skills needed for the future through experiential classes, workshops, and extracurricular ensure trade convenience and shorten the distance between communes/hamlets. They also facilitate travel for
activities... students and residents, achieving rural development in the Mekong Delta provinces.
In order to find, attract and foster talents, FPT spent 125 billion VND on Nguyen Van Dao scholarships to award to Blood Donation Day is regularly held with the desire to enhance the spirit of solidarity and support less fortunate
students, a 29% increase over 2021. 12,476 students with excellent academic achievements or exceptional talents people in society. With the motto “a few drops of blood can save a life”, blood donation has become a jewel in the
in many provinces across the country were awarded. crown of FPT’s annual charity and social activities. In 2022, 1,545 FPT employees participated in giving blood, with
2,138 blood units donated. This activity encourages everyone to make an impact and keep positive energy together
• The English Teaching Volunteering Program for children in the highlands toward a happy community.
The volunteer project called “Sowing words in the highlands” was jointly organized by the FEC English Club of FPT • The “Happy House” project
High School in Hanoi and the Department of Education and Training of Meo Vac district, Ha Giang province, with
the desire to help students in the uplands learn and hone foreign language skills. The project was implemented in Launching in September 2022, FPT completed 100 “Happy houses” for Vietnamese Heroic Mothers, families under
three communes of the Meo Vac district with 100 students. By the end of January 2023, the FEC Club of FPT High preferential treatment, and poor households within just four months. The total amount of spending was 6 billion
School in Hanoi is expected to launch three to five more English classes in other primary schools in the Meo Vac VND. The “Happy House” project is sponsored by FPT Corporation, operated by the Hope Foundation, and supported
district, bringing the total number of students to 300. In addition, the Club will make efforts to call for sponsors to by the authorities of the Hoc Mon and Cu Chi districts. Through constructing and improving houses for Vietnamese
equip the children with necessary learning materials, such as textbooks and flashcards, to make their lessons more Heroic Mothers, families under preferential treatment, and poor households who couldn’t afford the repair costs,
interesting, making an impact on the Community. FPT expressed gratitude to people with meritorious services to the national revolution.
On the basis of complying with the provisions of Vietnamese relevant legislation on its operating sectors and in • International QS 3-star ranking (one of the leading standards for ranking
accordance with international standards, FPT builds and maintains a unified management framework. It includes the universities worldwide);
Corporate Charter, governance regulations, and a documentation system throughout the Corporation, ensuring the
• ISO21001:2018: International Certificate for Educational Institution
implementation of a professional, efficient, and disciplined management system.
Management System;
Thus, FPT not only promotes the most important principle of corporate governance - which means the highest benefits • Standards for accreditation of educational institutions promulgated by the
for shareholders - but also harmonizes development goals, creates satisfaction, and is demonstrative in its social and Ministry of Education and Training;
environmental responsibilities. 4 Education • Standards for accreditation of educational institutions promulgated by the
Ministry of Labor, War Invalids, and Social Affairs.
Management processes that meet and adhere to international standards • Quality accreditation by ACBSP (US) - one of the leading global accrediting
organizations in the economic sector;
Applying international-standard management procedures
• Member of ASEAN University Network-Quality Assurance network - AUN-QA;
Constantly improving the efficiency of corporate governance and production management is the most effective • Member of AACSB Accreditation Organization - one of the leading global
way to ensure customer satisfaction, enhance competitiveness and provide sustainable benefits to stakeholders. accrediting organizations.
Moreover, this is indispensable for maintaining compliance and achieving sustainable development goals according
to international standards.
In 2022, FPT continuously implemented the OKR management method throughout the Corporation. The OKR methodology
Integrating sustainability in the supply chain and improving the procedure of selecting service providers
helped maintain the consistency between personal targets and the objectives of their department, subsidiary, and the entire
Corporation. It contributed to improving operational efficiency and labor productivity as well. Objectives and key results of Integrating sustainability issues into service purchasing and consumption decisions helped reduce economic, social,
the Corporation, its subsidiaries, functional departments, and all individuals were measured, updated, and monitored by the and environmental risks and enhance supply chain management. Therefore, the procurement plan was evaluated,
OKR online management platform to accurately track goal completion rates while adhering to the annual targets. carried out, and supervised by the Purchasing Department, which clearly described the separate processes and
regulations for each group of services and goods.
In addition, FPT’s overall activities and operations in each core field were well-recognized with prestigious international
standard certifications. The procurement management complied with regulatory requirements, a sense of responsibility for environmental
protection, and business ethics right from the first evaluation stage. Suppliers were simultaneously selected based
No Sector on a set of criteria, including price, reputation, quality, delivery readiness, social responsibility, and environmental
Certifications
protection. The selection benchmarks could be flexibly changed depending on each type of goods or service, which
led to the most suitable choices and ensured the highest benefits for all parties. They were calculated on different
• ISO 9001:2015: Quality Management System Standard; scales and weights based on the group of services or goods to be purchased.
1 The Corporation
• OKRs: A set of quality evaluation criteria in accordance with objectives and key results.
FPT Corporation and its subsidiaries always manage to protect the privacy of customers’ personal information. We • Promoting staff training and development, especially
take all possible technical measures to ensure completeness and accuracy while collecting, processing, and sharing for technologists, in order to enhance technological
our customers’ personal data. In addition, we guarantee that all essential information security measures are in place capabilities and meet competitive needs.
to prevent any illegal access, collection, use, disclosure, copying, or processing of customers’ data. FPT requires all • Continuously enhancing business models,
organizations or individuals we share the information to comply with the Privacy Policy strictly. information systems, and internal processes to
Most of the Corporation’s business
Competitive sectors have low entry barriers and yet optimize operations and expenditures based on
threats have faced enormous challenges as modern corporate governance systems;
Scope of corporate policies and the incident response plan foreign or emerging competitors arrive • Promoting in-house digital transformation to assure
and seize market shares. unified and transparent operations toward a real-time
The data protection policy is applied thoroughly across the Corporation and its subsidiaries in accordance with
data-driven corporation. This significant factor
governance standards.
helps build competitiveness, steadily overcoming
Response plans when data security incidents arise fully adhere to two levels: challenges as economic recovery suffers after the
Covid-19 pandemic. In 2022, the concentration on in-house
• Prevention: Based on understanding the root causes, prevention plans will also be devised and strictly enforced. digital transformation significantly enhanced the
• Remedy: Immediately, security breaches will be prevented, and highly specialized security departments will remedy Corporation’s management, operations, and business
security holes. Impact assessment to check relevant data areas will also be performed to avoid outbreaks. activities.
• The critical point of all the above data safety plans is that all procedures and actions are systematically designed
throughout the Corporation. The tasks and responsibilities of each department are strictly controlled, monitored,
and reported by a specialized department.
The department in charge of the data management system conducts training for personnel operating the system
periodically or when making any changes.
• Strictly monitoring factors that affect foreign exchange • Consolidated the internal control system and risk management policy throughout the Corporation and in
rates, diversifying resources of foreign-earned income; subsidiaries.
• Applying exchange rate hedging policies, especially for • Monitored compliance with legislation while implementing business activities of the Corporation and its subsidiaries.
Exchange Exchange rate fluctuation is a potential Japanese Yen; • Coordinated with specialized departments of the Corporation to irregularly and periodically inspect subsidiaries.
rate risks risk in FPT’s overseas IT services. • Using currency swaps to hedge against possible • Supervised activities between FPT/subsidiaries and its suppliers/partners to ensure equality, transparency, and the
exchange rate risks with foreign currency loans; highest benefits for all parties; prevent and minimize risks in business activities.
• Deploying flexible sales policies based on exchange • Proposed solutions to manage potential risks that may occur in the operations of FPT and its subsidiaries.
rate fluctuations.
Anti-corruption and fraud policy • To organize the control of compliance with legal requirements
Head of Compliance Monitoring Department and high-risk areas/activities in corporate governance.
As one of the large-scale enterprises operating in various countries, FPT developed and published a code of conduct. It • To organize inspection sessions at the request of the BOM.
laid the foundation for the Corporation’s activities, ensuring that personnel at all levels and departments comply with
the internal and external code of conduct to prevent conflicts of interest, fraud, and corruption.
• To organize the control of compliance with governance system
Accordingly, the Corporation set out principles to ensure internal confidentiality and a code of behavior for people Chief Quality Officer requirements.
outside the organization to ensure equal and civilized competition and compliance with relevant legislation. In • To organize inspection sessions at the request of the BOM.
addition, it also defined clear regulations and policies for employees to avoid conflicts of interest in receiving gifts,
whether directly or indirectly in any form. Gifting was stipulated to be conducted by FPT’s representatives on behalf • To review and update the corporate governance documents
of the Corporation. to ensure compliance with legal requirements, national and
It was strictly prohibited to take advantage of the company’s brand name in gift giving to perform bribery acts to international standards, and actual operations.
Head of functional departments
customers or any other third party. In addition, acts of abusing their power or personal relationships at the company to • To coordinate with the Quality Assurance Department and the
illegally influence competent parties in employee selection or promotion to gain private benefits were also considered Compliance Monitoring Department to control activities, solve
violations of the code of conduct. problems, and enhance the system.
CORPORATE INFORMATION
Statement of the Board of Management 138 Mr. Bui Quang Ngoc Vice Chairman
Mr. Do Cao Bao Member
Independent auditor’s report 139
Mr. Jean Charles Belliol Member
Consolidated balance sheet (Form B 01 – DN/HN) 140 Ms. Tran Thi Hong Linh Member (appointed on 7 April 2022)
Mr. Hiroshi Yokotsaka Member (appointed on 7 April 2022)
Consolidated income statement (Form B 02 – DN/HN) 144
Mr. Hampapur Rangadore Binod Member (appointed on 7 April 2022)
Consolidated cash flow statement (Form B 03 – DN/HN) 145 Mr. Le Song Lai Member (resigned on 7 April 2022)
Notes to the consolidated financial statements (Form B 09 - DN/HN) 147 Mr. Tomokazu Hamaguchi Member (resigned on 7 April 2022)
Mr. Dan E Khoo Member (resigned on 7 April 2022)
Board of Management Mr. Nguyen Van Khoa General Director
Mr. Nguyen The Phuong Deputy General Director
Mr. Hoang Viet Anh Deputy General Director
Board of Supervision Mr. Nguyen Viet Thang Chief Supervisor
Mr. Nguyen Khai Hoan Member
Ms. Duong Thuy Duong Member (appointed on 7 April 2022)
Ms. Nguyen Thi Kim Anh Member (appointed on 7 April 2022)
Legal Representatives Mr. Truong Gia Binh Chairman
Mr. Nguyen Van Khoa General Director
Registered Office No. 10, Pham Van Bach Street, Dich Vong Ward, Cau Giay District, Hanoi, Vietnam
Auditor PwC (Vietnam) Limited
Other Matter
The independent auditor’s report is prepared in Vietnamese and English. Should there be any conflict between the
Vietnamese and English versions, the Vietnamese version shall take precedence.
Nguyen The Phuong
Deputy General Director
Authorised signatory
As at 31 December As at 31 December
Code ASSETS Note 2022 2021 Code ASSETS Note 2022 2021
100 CURRENT ASSETS 30,937,711,076,141 35,118,372,900,846 200 LONG-TERM ASSETS 20,712,692,658,989 18,579,567,995,029
110 Cash and cash equivalents 3 6,440,177,174,322 5,417,845,293,242 210 Long-term receivables 225,090,876,189 167,244,119,883
112 Cash equivalents 2,559,317,063,142 1,970,467,802,105 216 Other long-term receivables 8(b) 276,273,436,689 219,704,534,928
120 Short-term financial investment 13,047,234,131,950 20,730,720,735,456 219 Provision for doubtful debts – long-term 9 (52,372,482,637) (54,729,173,818)
123 Investments held to maturity 4(a) 13,047,234,131,950 20,730,720,735,456 220 Fixed assets 12,032,914,964,907 10,398,837,546,784
130 Short-term receivables 8,502,895,161,839 6,882,182,894,987 221 Tangible fixed assets 13(a) 10,714,231,138,520 9,260,934,699,063
131 Short-term trade accounts receivable 5 7,990,076,948,983 6,211,956,510,246 222 Historical cost 19,007,982,397,113 16,080,827,716,168
132 Short-term prepayments to suppliers 6 292,916,357,080 400,707,131,836 223 Accumulated depreciation (8,293,751,258,593) (6,819,893,017,105)
134 Contract-in-progress receivables 7 199,252,243,559 168,939,964,952 224 Finance lease fixed assets 31,623,636,433 4,842,789,874
135 Short-term lendings 882,560,901 34,762,220,000 225 Historical cost 54,439,419,528 8,002,891,607
136 Other short-term receivables 8(a) 719,203,074,569 595,813,030,192 226 Accumulated depreciation (22,815,783,095) (3,160,101,733)
137 Provision for doubtful debts – short-term 9 (699,436,023,253) (529,995,962,239) 227 Intangible fixed assets 13(b) 1,287,060,189,954 1,133,060,057,847
149 Provision for decline in value of inventories (155,330,302,999) (115,972,426,935) 240 Long-term asset in progress 1,062,184,742,251 1,290,598,745,684
150 Other current assets 981,616,871,467 580,281,075,542 242 Construction in progress 14 1,062,184,742,251 1,290,598,745,684
151 Short-term prepaid expenses 11(a) 409,346,699,247 290,950,472,969 250 Long-term investments 3,238,299,217,787 3,101,993,693,319
152 Value Added Tax ("VAT") to be reclaimed 392,864,305,787 256,817,647,142 252 Investments in joint ventures, associates 4(b) 2,205,736,337,693 2,018,005,439,382
153 Tax and other receivables from the State 12(a) 179,405,866,433 32,512,955,431 253 Investments in other entities 4(b) 2,399,073,118,584 1,931,006,629,408
254 Provision for long-term investments 4(b) (1,376,710,238,490) (847,218,375,471)
255 Investments held to maturity 4(a) 10,200,000,000 200,000,000
260 Other long-term assets 4,154,202,857,855 3,620,893,889,359
261 Long-term prepaid expenses 11(b) 3,488,252,134,893 2,972,696,947,589
262 Deferred income tax assets 258,005,875,001 182,211,531,443
269 Goodwill 15 407,944,847,961 465,985,410,327
270 TOTAL ASSETS 51,650,403,735,130 53,697,940,895,875
The notes on pages 147 to 196 are an integral part of these consolidated financial statements. The notes on pages 147 to 196 are an integral part of these consolidated financial statements.
As at 31 December As at 31 December
Code RESOURCES Note 2022 2021 Code RESOURCES Note 2022 2021
310 Short-term liabilities 24,521,161,696,202 29,761,106,035,257 410 Capital and reserves 25,353,374,687,812 21,415,235,230,037
311 Short-term trade accounts payable 16 3,209,205,494,368 2,865,815,039,581 411 Owners’ capital 22, 23 10,970,265,720,000 9,075,516,490,000
312 Short-term advances from customers 17 491,097,603,761 710,658,541,296 411a - Ordinary shares with voting rights 10,970,265,720,000 9,075,516,490,000
313 Tax and other payables to the State 12(b) 670,648,917,592 517,652,708,809 412 Share premium 23 49,713,213,411 49,713,213,411
314 Payables to employees 3,276,698,433,947 2,926,228,655,285 414 Owners’ other capital 23 1,179,064,868,147 1,178,174,776,366
315 Short-term accrued expenses 18 807,640,094,658 829,126,223,397 415 Treasury shares 23 - (823,760,000)
317 Contract-in-progress payables 7 78,663,541,041 89,224,688,468 417 Foreign exchange differences 23 (40,480,690,557) (22,561,932,248)
318 Short-term unearned revenue 19(a) 3,200,401,361,855 2,530,369,295,558 418 Investment and development fund 23 1,086,270,726,048 570,491,625,643
319 Other short-term payables 20(a) 568,807,386,283 555,467,321,694 420 Other reserves 23 87,203,093,024 87,203,093,024
Short-term borrowings and finance lease 421 Undistributed earnings 23 7,711,681,484,541 7,000,480,585,004
320 21 10,904,344,845,014 17,799,441,187,777
liabilities 421a - Undistributed post-tax profits of previous years 4,103,787,447,601 3,967,085,558,748
321 Provision for short-term liabilities 251,132,995,783 112,413,880,560 421b - Undistributed post-tax profit of current year 3,607,894,036,940 3,033,395,026,256
322 Bonus and welfare fund 1,062,521,021,900 824,708,492,832 429 Non-controlling interests 23 4,309,656,273,198 3,477,041,138,837
330 Long-term liabilities 1,773,117,351,116 2,518,849,630,581 430 Budget sources and other funds 2,750,000,000 2,750,000,000
336 Long-term unearned revenue 19(b) 114,879,436,367 94,843,849,565 431 Budget sources 2,750,000,000 2,750,000,000
337 Other long-term payables 20(b) 28,146,819,108 34,908,209,574 440 TOTAL RESOURCES 51,650,403,735,130 53,697,940,895,875
Long-term borrowings and finance lease
338 21 1,477,830,333,990 2,296,308,493,046
liabilities
341 Deferred income tax liabilities 149,305,200,735 87,366,215,294
342 Provision for long-term liabilities 2,763,464,633 5,230,766,819
Fund for scientific and technological
343 192,096,283 192,096,283
development
The notes on pages 147 to 196 are an integral part of these consolidated financial statements. The notes on pages 147 to 196 are an integral part of these consolidated financial statements.
01 Revenue from sales of goods and CASH FLOWS FROM OPERATING ACTIVITIES
rendering of services 44,023,010,881,275 35,671,052,233,610 01 Net accounting profit before tax 7,662,282,959,880 6,337,206,440,958
02 Less deductions 13,483,200,364 13,789,688,583 Adjustments for:
10 Net revenue from sales of goods and
Depreciation and amortization of fixed assets
rendering of services (10 = 01 - 02) 25 44,009,527,680,911 35,657,262,545,027 02 1,833,064,499,128 1,643,915,685,332
and allocation of goodwill
11 Cost of goods sold and services rendered 26 26,842,249,039,713 22,025,298,308,249
20 Gross profit from sales of goods and 03 Provisions 880,253,740,252 352,207,924,154
rendering of services (20 = 10 - 11) 17,167,278,641,198 13,631,964,236,778 Foreign exchange losses/(gains) arising from
21 Financial income 27 1,998,503,979,865 1,270,789,386,267 04 translating monetary items denominated in 7,652,847,077 (63,913,432,668)
22 Financial expenses 28 1,687,369,701,824 1,144,187,446,845 foreign currencies
23 - Including: Interest expense 645,725,556,308 483,995,846,804 05 Profits from investing activities (1,986,715,685,147) (1,700,489,438,802)
24 Profit sharing from joint ventures and 06 Interest expense 645,725,556,308 483,995,846,804
associates 4(b) 483,598,048,401 686,864,681,119
08 Operating profit before changes in working capital 9,042,263,917,498 7,052,923,025,778
25 Selling expenses 29 4,526,440,691,815 3,604,610,784,981
26 General and administration expenses 30 5,846,280,653,514 4,612,325,935,574 09 Increase in receivables (1,949,023,327,296) (693,503,200,106)
30 Net operating profit 10 Increase in inventories (497,802,711,008) (218,231,826,239)
(30 = 20 + 21 - 22 + 24 - 25 - 26) 7,589,289,622,311 6,228,494,136,764
11 Increase in payables 1,299,834,862,339 1,910,090,001,449
31 Other income 184,323,926,142 133,219,177,622
32 Other expenses 111,330,588,573 24,506,873,428 12 Increase in prepaid expenses (633,951,413,583) (375,543,134,134)
40 Net other income (40 = 31 - 32) 72,993,337,569 108,712,304,194 14 Interest paid (635,688,969,538) (451,555,665,838)
50 Net accounting profit before tax 15 CIT paid (1,221,846,691,729) (1,045,034,654,569)
(50 = 30 + 40) 7,662,282,959,880 6,337,206,440,958
17 Other payments on operating activities (349,953,909,983) (339,450,991,614)
51 Corporate income tax ("CIT") - current 31 1,193,613,667,231 954,883,280,274
52 CIT - deferred 31 (22,674,161,820) 33,022,061,188 20 Net cash inflows from operating activities 5,053,831,756,700 5,839,693,554,727
60 Net profit after tax CASH FLOWS FROM INVESTING ACTIVITIES
(60 = 50 - 51 - 52) 6,491,343,454,469 5,349,301,099,496
Purchases of fixed assets and other long-term
Attributable to: 21 (3,215,243,200,871) (2,911,001,172,725)
assets
61 Shareholders of parent company 5,310,108,591,408 4,337,411,879,802
Proceeds from disposals of fixed assets and
62 Non-controlling interests 1,181,234,863,061 1,011,889,219,694 22 5,662,030,028 2,866,890,285
other long-term assets
70 Basic earnings per share 24(a) 4,429 3,618
23 Loans granted, and purchases of debt instru
71 Diluted earnings per share 24(b) 4,429 3,618 (32,995,035,947,486) (35,827,118,645,179)
ments of other entities
Collection of loans, proceeds from sales of debt
24 40,669,116,046,728 27,590,009,509,475
instruments of other entities
25 Investments in other entities (557,291,900,594) (450,878,532,336)
Proceeds from divestment of investment in
26 56,400,094,000 420,000,000
other entities
27 Dividends and interest received 1,793,624,815,520 1,182,811,834,149
Hoang Ngoc Bich Hoang Huu Chien Nguyen The Phuong Net cash inflows/(outflows) from investing
30 5,757,231,937,325 (10,412,890,116,331)
Preparer Chief Accountant Deputy General Director activities
Authorised signatory
8 March 2023
The notes on pages 147 to 196 are an integral part of these consolidated financial statements. The notes on pages 147 to 196 are an integral part of these consolidated financial statements.
As at 31 December 2022, the Group had 42,408 employees (as at 31 December 2021: 37,180 employees).
As at 31 December 2022, the Group had 8 direct subsidiaries and 3 main associates. Details of these entities
are presented on the following page.
In addition, information about other subsidiaries, joint ventures, and associates of the Company’s direct
subsidiaries is presented in Appendix 1 of the consolidated financial statements.
The notes on pages 147 to 196 are an integral part of these consolidated financial statements.
(*) As at 31 December 2022, the Company owns 45.66% of share capital and 45.66% of voting rights at FPT Telecom 2.2 Fiscal year
Joint Stock Company (“FTEL”) (as at 31 December 2021: 45.65% of share capital and 45.65% of voting rights).
The Group’s fiscal year is from 1 January to 31 December.
However, the Company has the right to cast a majority voting at the meetings of the Board of Directors or equivalent
management level of FTEL and the Company has the power to govern the financial and operating policies of FTEL.
As a result, the Company has control over FTEL, and FTEL is a subsidiary of the Company.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.3 Currency used in preparation and presentation of consolidated financial statements 2.5 Basis of consolidation (continued)
The consolidated financial statements are measured and presented in Vietnamese Dong (“VND” or “Dong”). Subsidiary (continued)
On consolidation, if the currencies used on the financial statements of subsidiaries are different from that of
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income
the Group, the Company translates those financial statements into the currency used by the Group following
the principles: statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Assets, liabilities and contingent liabilities of the subsidiary are measured at the fair values at the acquisition
• Assets, liabilities and goodwill incurred on acquisition of overseas subsidiaries are translated at the
date of the subsidiary. The excess of the cost of acquisition over the Group’s share of the fair value of the
actual exchange rates at the year end;
• Undistributed earnings or losses incurred after acquisition date are translated based on the translation identifiable net assets of the acquired subsidiary is recorded as goodwill. If the cost of acquisition is less than
of income and expenses in the income statement; the Group’s share of the fair value of the net assets of the acquired subsidiary, the difference is recognised
• Items of the income statement and the cash flow statement are translated at the average exchange rate directly in the consolidated income statement of the fiscal year when the subsidiary is acquired.
of the fiscal year if it approximates the actual rate at the time of the transaction (with the difference not
exceeding 2%); Inter-company transactions, balances and unrealised gains and losses on transactions between group
• Accumulated exchange differences arising from translation are presented in equity of the consolidated
companies are eliminated on consolidation.
balance sheet. Exchange differences attributable to the Company are presented in “Foreign exchange
differences”. Those attributable to non-controlling interests are allocated to “Non-controlling interests”.
Accounting policies of subsidiaries are changed where necessary to ensure consistency with the policies
2.4 Exchange rates adopted by the Group.
Transactions arising in foreign currencies are translated at exchange rates prevailing at the transaction dates. Non-controlling transactions and interests
Monetary assets and liabilities denominated in foreign currencies at the consolidated balance sheet date are
mainly translated at the transfer rate at the consolidated balance sheet date of the commercial banks with
The Group applies a policy for transactions with non-controlling interests as transactions with external
which the Group regularly has transactions.
parties to the Group.
Borrowings denominated in foreign currencies which the Group hedges the exchange rate risk by using
currency swap and forward transactions are translated at exchange rates nominated in the contracts between Non-controlling interests consist of the amount of those non-controlling interests at the date of the original
the Group and the commercial banks. business combination and the non-controlling interests’ share of changes in equity since the date of the
combination. Losses in subsidiaries are respectively attributed to the non-controlling interests even if this
Foreign exchange differences arising from these translations are recognised in the consolidated income statement.
results in the non-controlling interests having a deficit balance.
2.5 Basis of consolidation The non-controlling interests are initially measured at the non-controlling shareholders’ proportion of the net
fair value of the assets, liabilities, and contingent liabilities recognized.
Subsidiary
The consolidated financial statements incorporate the financial statements of the parent company and A divestment of the Group’s interest in a subsidiary that does not result in a loss of control is accounted for
enterprises controlled by the Group. Control is achieved where the Group has the power to govern the financial as a transaction with owners. The difference between the change in the Group’s share of net assets of the
and operating policies of an investee enterprise so as to obtain benefits from its activities. subsidiary and any consideration paid or received from divestment of the Group’s interest in the subsidiary
is recorded directly in the undistributed earnings under equity. In a divestment of the Group’s interest in a
subsidiary that results in a loss of control, the difference between the Group’s share in the net assets of the
subsidiary and the net proceeds from divestment is recognised in the consolidated income statement. The
retained interest in the entity will be accounted for as either an investment in another entity or an investment
to be accounted for as equity since the divestment date.
Joint ventures are contractual arrangements whereby two or more parties undertake an economic activity Provision for doubtful debts is made for each outstanding amount based on overdue days in payment
which is subject to joint control. Associates are all entities over which the Group has significant influence but according to the initial payment commitment (exclusive of the payment rescheduling between parties), or
not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments based on the estimated loss that may arise. Bad debts are written off when identified as uncollectible.
in joint ventures and associates are accounted for using the equity method of accounting and are initially
recognised at cost. Interests in joint ventures and associates are carried in the consolidated balance sheet Receivables are classified into short-term and long-term receivables on the consolidated balance sheet
at cost as adjusted by post-acquisition changes in the Group’s share of the net assets of the associates. The based on the remaining period from the consolidated balance sheet date to the maturity date.
Group’s investment in joint ventures and associates includes goodwill identified on acquisition, net of any
accumulated impairment loss. 2.9 Inventories
Profits from the joint ventures and associates on the consolidated income statement are proportional to Inventories are stated at the lower of cost and net realisable value. Cost is determined by the first-in first-
the Group’s ownership interest in the joint ventures and associates in respect of profit of the joint ventures out method and includes all costs of purchase, costs of conversion and other costs incurred in bringing the
and associates. When the Group’s share of losses in an associate equals or exceeds its interest in the joint inventories to their present location and condition. In the case of manufactured products, cost includes all
venture or associate, the Group does not recognize further losses, unless it has incurred obligations or made direct expenditure and production overheads based on normal levels of operating activity. Net realisable
payments on behalf of the joint ventures and associates. value is the estimated selling price in the normal course of business, less the estimated costs of completion
and selling expenses.
Unrealized gains and losses on transactions between the Group and its joint ventures and associates are
eliminated to the extent of the Group’s interest in the joint ventures and associates in accordance with The Group applies the perpetual system for inventories.
current accounting regulations.
Provision is made, when necessary, for obsolete, slow-moving and defective inventory items. The difference
2.6 Goodwill between the provision of this period and the provision of the previous period are recognised as an increase or
Goodwill in the consolidated financial statements represents the excess of the cost of an acquisition over decrease of cost of goods sold in the year.
the fair value of the Group’s share of the net identifiable assets of the acquired subsidiary or associate at the
date of acquisition. 2.10 Investments
Goodwill on acquisitions of subsidiaries is recognised as an asset and is amortised in the consolidated income (a) Investments held to maturity
statements in accordance with current accounting regulations. Goodwill on acquisitions of investments in
joint ventures and associates is included in the carrying amount of the investments at the date of acquisition. Investments held to maturity are investments which the Group has a positive intention and ability to hold
The Group does not amortise this goodwill. until maturity.
On disposal of the investments in subsidiaries or joint ventures and associates, the residual value of the Investments held to maturity include bank deposits with term over 3 months, and other investments held
goodwill that has not been fully depreciated is reduced in proportion to the percentage of capital withdrawn to maturity. Those investments are initially accounted for at cost. Subsequently, the Group reviews all
and included in the undistributed profit after tax when the parent company still holds control over the outstanding investments to determine the amount of provision to recognise at the accounting period.
subsidiary or is reduced in its entirety and included in profit/loss on the consolidated income statement in
case the parent company loses control. Provision for diminution in value of investments held to maturity is made when there is evidence that the
investment is uncollectible in whole or in part. Changes in the provision balance during the accounting period
The Group assesses impairment for goodwill in subsidiaries on an annual basis. If there is evidence that the are recorded as an increase or decrease in financial expenses. A reversal, if any, is made only to the extent the
impairment during the year is higher than the annual goodwill charge, the Group records the impairment investment is restored to its original cost.
immediately in the year.
Investments held to maturity are classified into short-term and long-term investments held to maturity on
the consolidated balance sheet based on the remaining period from the consolidated balance sheet date to
2.7 Cash and cash equivalents the remaining maturity date.
Cash and cash equivalents comprise cash on hand, cash in banks, cash in transit, demand deposits and other
short-term investments with an original maturity of three months or less.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.10 Investments (continued)
2.13 Fixed assets
(b) Investments in joint ventures and associates
Investments in joint ventures and associates are accounted for using the equity method when preparing the Tangible fixed assets and depreciation
consolidated financial statements (Note 2.5).
(c) Investments in other entities Fixed assets are stated at historical cost less accumulated depreciation. Historical cost includes any
expenditure that is directly attributable to the acquisition of the fixed assets bringing them to suitable
Investments in other entities are investments in equity instruments of other entities without controlling rights condition for their intended use. The costs of self-constructed or manufactured assets are the actual
or co-controlling rights, or without significant influence over the investee. These investments are carried at construction or manufacturing cost plus installation and test running costs. Expenditure which is incurred
cost less provision. subsequently and has resulted in an increase in the future economic benefits expected to be obtained from
the use of fixed assets, can be capitalised as an additional historical cost. Otherwise, such expenditure is
Provision for investments in other entities is made when there is a diminution in value of the investments at charged to the consolidated income statement when incurred.
the year end. It is calculated based on market value if market value can be determined reliably. If market value
can not be determined reliably, the provision for investments in other entities is calculated based on the loss Tangible fixed assets are depreciated using the straight-line method over their following estimated useful
of investees. lives. The estimated useful lives of each asset class are as follows:
Changes in the provision balance during the accounting period are recorded as an increase or decrease in
financial expenses. A reversal, if any, is made only to the extent the investment is restored to its original cost.
Buildings and structures 8 - 30 years
2.11 Lendings Machinery and equipment 3 - 25 years
Lendings are lendings granted for interest earning under agreements among parties but not being traded as Motor vehicles 4 - 7 years
securities. Office equipment 3 - 10 years
Lendings are recognised at cost less any provision for doubtful lendings. Provision for doubtful lendings is Others 3 - 5 years
made based on the current accounting regulations. Changes in the provision balance during the accounting
period are recorded as an increase or decrease in financial expenses. A reversal, if any, is made only to the
extent the investment is restored to its original cost. Intangible fixed assets and amortisation
Lendings are classified into short-term and long-term lendings on the consolidated balance sheet based on Intangible assets reflect the value of land use rights, license, operating rights, copyrights and patents,
the remaining term of the lendings as the consolidated balance sheet date. customer relationship, brand name, and computer software.
When the outcome of a contract on software development and system integration cannot be reliably Indefinite land use rights are stated at costs and not amortised.
estimated, contract revenue is recognised to the extent of contract costs incurred where it is probable those
costs will be recoverable. Contract costs are only recognised when incurred during the year.
(ii) Computer software
The aggregate of the costs incurred and the profit or loss recognised on each contract is compared against the
progress billings up to the period end. Where costs incurred and profits recognised (less recognised losses) Purchase price of a new computer software which is not an integral part of a related hardware is capitalized
exceed progress billings, the balance is presented as contracts-in-progress receivables. Where progress and accounted for as an intangible asset. Computer software is amortised to the consolidated income
billings exceed costs incurred plus recognised profits (less recognised losses), the balance is presented as statement on a straight-line basis over a period of 3 to 5 years.
contracts-in-progress payables.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(iii) Licenses, operation rights, copyrights and patents Prepaid expenses are expenses which have already been paid but relate to results of operations of multiple
accounting periods, including land rental, office rental, service deployment costs for new subscribers and
Purchase price of a license is accounted for as an intangible asset. The license is amortised to the other prepaid expenses.
consolidated income statement on a straight-line basis over a period of 3 to 5 years.
Prepaid land rental includes land rental which are not recorded as intangible assets, and other costs incurred
The right to operate the high-speed internet lines - Asia America Gateway (“AAG”) and Asia Pacific Gateway
(“APG”) project and right of infinite use of AAE1 (Asia - Africa - Europe 1) are amortised over 15 years. in connection with securing the use of the leased land. Prepaid land rental and office rental are charged to the
consolidated income statement using the straight-line method over the lease term.
Purchase prices of copyrights and patents are capitalized and accounted for as intangible assets.
Copyrights and patents are amortised to the consolidated income statement on a straight-line basis Expenses for deploying services for subscribers are charged to the consolidated income statement using the
over a period of 3 to 5 years. straight-line method over the estimated useful lives.
Other prepaid expenses comprise costs of tools, supplies and spare parts issued for consumption, renovation
(iv) Customer relationships and brand name of furniture and office, maintenance and other prepayments for services contracts which are expected to
generate future economic benefits for the Company. These expenditures have been capitalised as prepaid
Customer relationship and brand name which arise from the acquisition of subsidiaries are amortised
expenses and are allocated to the consolidated income statement using the straight-line method in
on a straight-line basis over their estimated useful lives of 20 years and 10 years, respectively.
accordance with the prevailing accounting regulations.
Disposals
2.16 Payables
Gains or losses on disposals are determined by comparing net disposal proceeds with the carrying amount of
the fixed assets and are recognised as income or expense in the consolidated income statement. Classifications of payables are based on their nature as follows:
Construction in progress • Trade accounts payable are trade payables arising from purchase of goods and services; and
• Other payables are non-trade payables and payables not relating to purchases of goods and services.
Construction in progress represents the cost of assets in the course of installation or construction for
production, rental or administrative purposes, or for purposes not yet determined, which are recorded at Payables are classified into short-term and long-term payables on the consolidated balance sheet based on
cost. Depreciation of these assets, on the same basis as other fixed assets, commences when the assets are the remaining period from the consolidated balance sheet date to the maturity date.
ready for their intended use.
2.17 Borrowings and finance lease liabilities
2.14 Leased assets
Borrowings and finance lease liabilities include borrowings and finance leases from banks, financial
institutions, financial companies and other entities.
Leases of property, plant and equipment where the lessor has transferred the ownership at the end of the
lease period, and transferred substantially the risks and rewards, are classified as finance leases. Finance Borrowings and finance lease liabilities are classified into short-term and long-term borrowings and finance
leases are capitalized at the inception of the lease at the lower of the fair value of leased assets or the present lease liabilities on the consolidated balance sheet based on the remaining period from the consolidated
value of the minimum lease payments. balance sheet date to the maturity date.
Each lease payment is separated between the liability and finance charges to achieve a constant rate on the
Borrowing costs that are directly attributable to the construction or production of any qualifying assets are
outstanding finance/lease balance.
capitalised during the period of time that is required to complete and prepare the asset for its intended use. In
The interest element of the finance cost is charged to the consolidated income statement over the lease respect of general-purpose borrowing, a portion of which is used for the purpose of construction or production
term. The property, plant and equipment acquired under finance leasing contracts are depreciated on a of any qualifying assets, the Group determines the amount of borrowing costs eligible for capitalisation by
straight-line basis over the shorter of the estimated useful life of the assets or the lease term. However, if applying a capitalisation rate to the weighted average expenditure on the assets. The capitalisation rate is the
there is reasonable certainty that the lessee will obtain ownership by the end of the lease term, depreciation weighted average of the interest rates applicable to the Group’s borrowings that are outstanding during the
is calculated over the estimated useful life of the assets. year, other than borrowings made specifically for the purpose of obtaining a qualifying asset. Other borrowing
costs are recognised in the consolidated income statement when incurred.
Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Payments made under operating leases are charged to the consolidated
income statement on a straight-line basis over the term of the lease.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Accrued expenses include liabilities for goods and services received in the year but not yet paid for, due to The Company’s dividends are recognised as a liability in the consolidated financial statements on the last
pending invoices or insufficient records and documents. Accrued expenses are recorded as expenses in the registration date for dividend payment to shareholders.
reporting period.
Net profit after CIT could be distributed to shareholders after approval at the Shareholders’ General Meeting,
2.19 Provisions and after appropriation to other funds in accordance with the Company’s charter and Vietnamese regulations.
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past The Group’s funds are appropriated as below:
events, it is probable that an outflow of resources will be required to settle the obligation and the amount has
been reliably estimated. Provision is not recognised for future operating losses. (a) Investment and development fund
Provisions are measured at the level of the expenditures expected to be required to settle the obligation. If Investment and development fund is mainly appropriated from profit after CIT of the Group and is used for
the time value of money is material, provision will be measured at the present value using a pre-tax rate that providing capital funding for development projects of the Group.
reflects current market assessments of the time value of money and the risks specific to the obligation. The
increase in the provision due to passage of time is recognised as a financial expense. Changes in the provision In education sector, investment and development fund is appropriated from profit before CIT in accordance
balance during the accounting period are recorded as an increase or decrease in operating expenses. with the Law on Higher Education No. 8/2012/QH13 promulgated by the National Assembly of Vietnam on 18
June 2012 and used for investing in the development of university education institutions and educational
2.20 Unearned revenue activities, building facilities, purchasing equipment, upskilling lecturers, educational administrators and
employees, supporting learners and performing social responsibilities.
Unearned revenue mainly comprises the amounts that customers have paid in advance for one or many
accounting periods for telecommunication services, office rental, tuition fees and repair, maintenance (b) Other reserves
services but the related services have not been rendered. The Group records unearned revenue for the future
obligations that the Group has to fulfil. Unearned revenue is recognised as revenue in the consolidated income Other reserves are appropriated from net profit after CIT. The appropriation and use of other reserves
statement during the year to the extent that revenue recognition criteria have been met. belonging to the owner’s equity follows the prevailing financial policies of the Company and are approved by
the shareholders.
2.21 Capital and reserves
(c) Bonus and welfare fund
Owners’ capital is recorded according to the actual amounts contributed and is recorded according to the par
value of the shares. Bonus and welfare fund is appropriated in accordance with the Group’s policies and subject to shareholders’
approval at the Shareholders’ General Meeting. This fund is presented as a liability on the consolidated
Share premium is the difference between the par value and the issue price of shares and the difference balance sheet. The fund is used for staff appraisal appreciation and improving the employees’ welfare.
between the repurchase price and re-issuing price of treasury shares.
2.23 Revenue recognition
Owners’ other capital represents other capital of the owners at the reporting date, mainly regarding accounting for
the dividends in shares which the Company received from the subsidiaries in the consolidated financial statements. (a) Revenue from sales of goods
Treasury shares bought by the Company before the effective date of the Securities Law (i.e., 1 January 2021) Revenue from sales of goods is recognised in the consolidated income statement when all five (5) of the
but not cancelled may be re-issued subsequently in accordance with the Law on Securities. Treasury shares following conditions are satisfied:
bought after 1 January 2021 will be cancelled and adjusted to reduce the equity.
• The Group has transferred to the buyer the significant risks and rewards of ownership of the goods;
Foreign exchange differences represent the differences in exchange rate occurred when the Company • The Group retains neither continuing managerial involvement to the degree usually associated with
converts the financial statements of the subsidiaries prepared and presented in foreign currency to VND for ownership nor effective control over the goods sold;
the consolidation purpose. • The amount of revenue can be measured reliably;
• It is probable that the economic benefits associated with the transaction will flow to the Group; and
Undistributed earnings record the Group’s accumulated results after CIT at the reporting date. • The costs incurred or to be incurred in respect of the transaction can be measured reliably.
No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due or
the possible return of goods.
Revenue is recognised in accordance with the “substance over form” principle and allocated to each sale obligation.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Revenue from rendering of services 2.25 Cost of goods sold and services rendered
Revenue from rendering of services is recognised in the consolidated income statement when the services Cost of goods sold and cost of services rendered are cost of finished goods, merchandise sold or services
are rendered, by reference to completion of the specific transaction assessed on the basis of the actual rendered during the year, and recorded on the basis of matching with revenue and on a prudence basis.
service provided as a proportion of the total services to be provided. Revenue from rendering of services is
only recognised when all four (4) of the following conditions are satisfied:
2.26 Financial expenses
• The amount of revenue can be measured reliably; Financial expenses are expenses incurred in the year for financial activities mainly including interest
• It is probable that the economic benefits associated with the transaction will flow to the Group; expense, provision for diminution in value of investments in other entities, and losses from foreign exchange
• The percentage of completion of the transaction at the consolidated balance sheet date can be measured differences.
reliably; and
• The costs incurred for the transaction and the costs to complete the transaction can be measured reliably. 2.27 Selling expenses
Revenue from rendering of services includes: Selling expenses represent expenses that are incurred in the Group’s process of selling products, goods, and
Revenue from software export, software development, system integration and informatics services providing services.
Revenue is recognised in the consolidated income statement by reference to the percentage of completion of 2.28 General and administration expenses
transactions at the year end. The percentage of completion is assessed by the survey of work performed, or
the percentage costs incurred/time spent on the portion of work completed at the end of the year compared General and administration expenses represent expenses that are incurred for the Group’s administrative purposes.
to the total estimated costs/time of the contracts. When the performance of the contracts cannot be reliably
estimated, the revenue is recognized only as the equivalent of the incurred contract costs, with which the 2.29 Current and deferred income tax
reimbursement is relatively certain.
Income taxes include all income tax which is based on taxable profits. Income tax expense comprises current
Revenue from telecommunication services
tax expense and deferred tax expense.
Revenue from telecommunication services is recognised on a pro-rata basis over the period during which the
services are actually provided to customers. Current income tax is the amount of income taxes payable or recoverable in respect of the current year
taxable profit at the current tax rates. Current and deferred tax are recognised as an income or an expense
Revenue from online advertising services and included in profit or loss of the year, except to the extent that the tax arises from a transaction or event
which is recognised, in the same or a different period, directly in equity.
Revenue from online advertising services is recognised on the basis of work completion.
Revenue from tuition fees and other fees Deferred income tax is provided in full, using the liability method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements.
Revenue is recognised in the year when services are rendered. Tuition fees and other fees collected in advance Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a
from the students are recorded as unearned revenue on the consolidated balance sheet and recorded in the transaction other than a business combination that at the time of occurrence affects neither the accounting
consolidated income statement in the financial year in which the semesters fall. nor the taxable profit or loss. Deferred income tax is determined at the tax rates that are expected to apply
to the financial year when the asset is realised or the liability is settled, based on tax rates that have been
(c) Interest income and income from investments enacted or substantively enacted by the consolidated balance sheet date.
Interest income is accrued on an accrual basis, by reference to the principal outstanding balances and at Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be
the applicable interest rate. Income from investments is recognised when the Group’s right to receive the available against which the temporary differences can be utilised.
payment has been established.
Sales deductions include trade discounts, sales returns and allowances. Sales deductions incurred in the
same period of the related revenue from sales of products, goods and rendering of services are recorded as
deduction of revenue of that period.
Sales deductions for sales of products, goods or rendering of services which are sold in the year but are
incurred after the consolidated balance sheet date but before the issuance of the consolidated financial
statements are recorded as a deduction of revenue of that reporting year.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Enterprises and individuals that directly, or indirectly through one or more intermediaries, control, or are The preparation of the consolidated financial statements in conformity with Vietnamese Accounting Standards,
controlled by, or are under common control with the Group, including holding companies, subsidiaries, the Vietnamese Corporate Accounting System and applicable regulations on preparation and presentation of
and fellow subsidiaries are related parties of the Group. Associates and individuals owning, directly or consolidated financial statements requires the Board of Management to make estimates and assumptions
indirectly, an interest in the voting power of the Group that gives them significant influence over the Group, that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the
key management personnel, including the Board of Directors, the Board of Management of the Company date of the consolidated financial statements and the reported amounts of revenues and expenses during the
and close members of the family of these individuals and companies associated with these individuals also financial year.
constitute related parties.
The areas involving significant estimates and assumptions in consolidated financial statements are as follows:
In considering its relationships with each related party, the Group considers the substance of the relationships,
not merely the legal form. • Provision for doubtful debts (Note 9);
• Provision for decline in value of inventories (Note 10);
2.31 Segment reporting • Estimated useful lives of fixed assets (Note 2.13 and 2.14);
• Classification and provision for investments (Note 4);
A segment is a component which can be separated by the Group engaged in providing products or services • Estimation of revenue’s percentage of completion (Note 2.23); and
(“business segment”) or providing products or services within a particular economic environment (“geographical • Estimation of CIT (Note 31).
segment”). Each segment is subject to risks and returns that are different from those of other segments. The
primary segment reporting of the Group is presented in respect of the Group’s business segments. Such estimates and assumptions are continually evaluated based on historical experience and other factors,
including expectations of future events that may have a financial impact on the Group’s consolidated financial
Information technology and telecommunication statements and that are assessed by the Board of Management to be reasonable under the circumstances.
Telecommunication: including internet services to individuals and households, internet services to enterprises 3 CASH AND CASH EQUIVALENTS
such as internet lease line, domestic and international telecommunication, domain, hosting, Web Portal
services, IPTV..; 31/12/2022 31/12/2021
VND VND
Digital contents: including online services for enterprises and individual customers, including online newspapers
(such as VnExpress.net, Ngoisao.net, iOne.net, Gamethu.vn...); online advertising (AdNetwork), online music, Cash on hand 2,317,183,765 2,025,384,010
online payment...;
Cash in banks 3,872,389,005,218 3,444,095,452,027
Global IT services: including software production, providing consultancy and deployment of S.M.A.C/IoT, digital Cash in transit 6,153,922,197 1,256,655,100
transformation services, IT system transformation services, quality assurance testing, embedded software Cash equivalents (*) 2,559,317,063,142 1,970,467,802,105
design, ERP implementation and management services; and
6,440,177,174,322 5,417,845,293,242
Information technology services, software and software solutions, system integration: including application
software solutions; information system integration services and solutions; IT equipment; data center; (*) Mainly included bank deposits with original maturity of less than 3 months. Interest rate is specified in
networking and security system design/development; warranty and maintenance of IT products authorized by each deposit.
hardware vendors.
Including training services on IT, business management majors at general education, high education, university,
and post-graduate levels; managing financial investments.
164
Form B 09 - DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2022
4 INVESTMENTS
31/12/2022 31/12/2021
Cost Book value Cost Book value
VND VND VND VND
i. Short-term
Bank term deposits with original maturity of more than 3
13,034,710,317,658 13,034,710,317,658 20,718,196,921,164 20,718,196,921,164
months and remaining term of less than 12 months (*)
Others 35,275,051,776 12,523,814,292 35,275,051,776 12,523,814,292
13,069,985,369,434 13,047,234,131,950 20,753,471,972,940 20,730,720,735,456
ii. Long-term
Bank term deposits with remaining term of more than
10,200,000,000 10,200,000,000 200,000,000 200,000,000
12 months (*)
(*) The fair value of these investments is determined on the basis of the closing price on the stock exchange and the number of shares held by the Group
at the end of the financial year.
(**) Because the Vietnamese Accounting Standards, the Vietnamese Accounting System currently do not provide detailed guidance on how to determine
fair values using valuation techniques for investments without market prices, the Group has not determined the fair value of these investments to
disclose in the consolidated financial statements. The fair value of these investments might differ from their book value.
Movements of investments in joint ventures, associates during the year are as follows
2022 2021
VND VND
Beginning of the year 2,018,005,439,382 1,980,817,143,237
Capital increase in associates 120,361,750,000 -
The Group’s share of profits in results of joint ventures, associates 483,598,048,401 686,864,681,119
Dividends received (419,457,561,507) (247,110,500,700)
31/12/2022 31/12/2021
31/12/2022 31/12/2021
VND VND
VND VND
Third parties 7,956,170,519,774 6,190,948,389,197
Related parties (Note 34(b)) 33,906,429,209 21,008,121,049 (a) Short-term
7,990,076,948,983 6,211,956,510,246 Interest from bank deposits and lendings 261,014,589,466 268,747,933,397
Receivables related to maintenance service contracts 133,829,197,269 131,225,408,551
Details of customers balances accounting for more than 2% of total balance of short-term trade accounts Deposits 71,194,106,987 69,044,553,739
receivable are as follows: Others 253,165,180,847 126,795,134,505
31/12/2022 31/12/2021 719,203,074,569 595,813,030,192
VND VND
(b) Long-term
LG Electronics, Inc. 213,242,147,744 88,271,443,949
Deposits 223,229,064,452 164,662,588,694
Cox Automotive Corporate Services, LLC 202,153,381,672 199,310,869,852
Joint Stock Commercial Bank for Foreign Trade of Vietnam 199,989,451,632 255,012,550,151 Others 53,044,372,237 55,041,946,234
3,488,252,134,893 2,972,696,947,589
13 FIXED ASSETS
Historical cost
Accumulated depreciation
Charge for the year (254,512,408,244) (1,266,269,833,551) (10,071,905,470) (54,315,919,390) (8,719,119,087) (1,593,889,185,742)
The historical cost of the Group’s tangible fixed assets that were fully depreciated but still in use as at
31 December 2022 was approximately VND 3,920,030 million (as at 31 December 2021: approximately
VND 3,093,129 million).
172
Form B 09 - DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2022
The historical cost of the Group’s intangible fixed assets that were fully amortised but still in use as at 31 December 2022 was approximately VND 594,015
million (as at 31 December 2021: approximately VND 604,152 million).
14
16
Others
Increase
Company
Allocation
End of year
Third parties
are as follows:
Beginning of year
Hoa Lac 3 project
District 9 Data Center
15 GOODWILL
FPT University Can Tho
FPT University Da Nang
3,209,205,494,368
241,841,748,695
2,967,363,745,673
VND
31/12/2022
407,944,847,961
(58,040,562,366)
-
465,985,410,327
VND
2022
1,062,184,742,251
402,071,027,383
105,774,733,437
177,411,715,340
VND
31/12/2022
184,520,996,061
192,406,270,030
75,166,360,930
34,303,501,876
41,084,300,000
44,472,675,358
65,423,497,680
112,236,110,195
118,611,457,800
132,242,370,240
VND
31/12/2022
133,012,849,866
73,936,507,593
74,284,866,000
465,985,410,327
64,756,114,826
81,886,053,070
73,578,471,600
65,822,423,493
67,628,421,300
189,518,040,480
14,561,602,350
VND
31/12/2021
(75,299,750,395)
341,250,935,695
200,034,225,027
VND
2021
Details of suppliers balances accounting for more than 2% of total balance of short-term trade accounts payable
| 173
17
19
18
174
20
(a)
(b)
(a)
(b)
Others
Others
Others
Others
Long-term
Short-term
Others
Dividend payables
Education services
Education services
Long-term
Short-term
UNEARNED REVENUE
Interest expense
114,879,436,367
109,365,881,731
-
5,513,554,636
31/12/2022
3,200,401,361,855
219,874,436,434
1,431,663,399,394
1,548,863,526,027
VND
22,522,569,407
568,807,386,283
31/12/2022
238,191,115,869
28,146,819,108
5,624,249,701
14,449,102,056
92,007,765,491
96,393,870,781
127,765,532,086
VND
VND
31/12/2022
491,097,603,761
807,640,094,658
317,323,944,978
146,256,187,840
344,059,961,840
VND
31/12/2022
VND
31/12/2021
710,658,541,296
34,908,209,574
26,811,367,303
8,096,842,271
555,467,321,694
262,466,739,914
12,806,984,031
82,995,929,719
85,026,865,617
VND
31/12/2021
829,126,223,397
318,701,711,190
136,502,079,832
112,170,802,413
94,843,849,565
77,821,634,378
9,388,326,084
7,633,889,103
373,922,432,375
VND
2,530,369,295,558
178,095,552,508
974,465,066,009
1,377,808,677,041
VND
31/12/2021
31/12/2021
(*) As at 31 December 2022 and 31 December 2021, there were no items accounting for more than 10% of total
(i) Short-term unsecured borrowings are to supplement the Group’s working capital. Interest rate is specified in each withdrawal and ranges from 0.45%/p.a to
8.8%/p.a (2021: from 0.46%/p.a to 4.6%/p.a).
(ii) Long-term unsecured borrowings from banks are to supplement the Group’s purchase and construction of fixed assets. Interest rate is specified in each withdrawal
and ranges from 0%/p.a to 7.2%/p.a (2021: 0%/p.a to 7.2%/p.a).
Consolidated financial statements
| 175
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 - DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2022
VND VND
Long-term borrowings 2,313,964,814,634 2,708,918,206,498 31/12/2022 31/12/2021
- Within 3-year term 1,829,680,417,553 2,085,802,767,478 Ordinary
Ordinary shares
- 5-year term 418,822,793,181 548,834,107,360 shares
- Over 5-year term 65,461,603,900 74,281,331,660
Number of shares registered 1,097,026,572 907,551,649
Long-term finance lease liabilities 33,509,755,402 5,404,697,958
2,347,474,570,036 2,714,322,904,456 Number of shares issued 1,097,026,572 907,551,649
Ordinary shares 1,097,026,572 907,551,649
Long-term borrowings are repayable as follows:
- In which: shares subject to restriction in ownership transfer 15,836,905 12,990,216
31/12/2022 31/12/2021
Number of shares repurchased - (82,376)
VND VND
Number of existing shares in circulation 1,097,026,572 907,469,273
Within 1 year 856,364,609,725 416,624,371,951
Between 1 year and 2 years 1,276,573,372,159 867,271,872,209 Ordinary shares 1,097,026,572 907,469,273
Between 2 years and 5 years 176,367,074,850 1,403,692,439,998 - In which: shares subject to restriction in ownership transfer 15,836,905 12,990,216
Over 5 years 4,659,757,900 21,329,522,340
2,313,964,814,634 2,708,918,206,498
Less: payables within 12 months (856,364,609,725) (416,624,371,951) Each ordinary share presents one vote at shareholders’ meetings of the Company. The shareholders are
1,457,600,204,909 2,292,293,834,547 entitled to receive dividends as declared from time to time. All ordinary shares are equal with regard to
the Company’s residual assets. In respect of shares bought back by the Company, all rights and benefits
Details of borrowings in original currencies are as follows: associated with the shares are suspended until those shares are re-issued.
31/12/2022 31/12/2021
Shares subject to restriction in ownership transfer, which are mainly shares issued for employees with
Original amount VND equivalent Original amount VND equivalent outstanding performance and executive management, are subject to restrictions that the share owners are
VND VND not allowed to resell their shares within a specified timeline from the date of issuance.
US Dollars (“USD”) 81,305,026.21 1,892,973,593,416 303,962,500.00 6,974,395,019,400
(b) Movement of share capital
Japanese Yen
17,163,468,078.00 3,247,814,465,750 20,884,075,209.00 4,230,233,154,020
(“JPY”)
Vietnamese Number of Ordinary Treasury
7,241,387,119,838 7,241,387,119,838 8,891,121,507,403 8,891,121,507,403 Total
Dong (“VND”) shares shares shares
12,382,175,179,004 20,095,749,680,823 VND VND VND
Details of borrowings in foreign currencies which are hedged by foreign currency swap and forward contracts As at 1 January 2021 783,905,110 7,839,874,860,000 (823,760,000) 7,839,051,100,000
are as follows: Shares issued 5,209,768 52,097,680,000 - 52,097,680,000
Share dividends declared 118,354,395 1,183,543,950,000 - 1,183,543,950,000
31/12/2022 31/12/2021
As at 31 December 2021 907,469,273 9,075,516,490,000 (823,760,000) 9,074,692,730,000
Foreign Amount in foreign Hedged amount in Amount in foreign Hedged amount in
Shares issued 6,726,641 66,442,650,000 823,760,000 67,266,410,000
currencies currencies foreign currencies currencies foreign currencies
USD 81,305,026.21 78,400,000.00 303,962,500.00 288,400,000.00 Share dividends declared 182,830,658 1,828,306,580,000 - 1,828,306,580,000
JPY 17,163,468,078.00 5,150,000,000.00 20,884,075,209.00 10,770,000,000.00 As at 31 December 2022 1,097,026,572 10,970,265,720,000 - 10,970,265,720,000
In addition, the Group also has foreign currencies obtained from the performance of service contracts in USD and
Par value per share: VND 10,000
JPY to repay the Group’s borrowings. Specifically, the Group’s revenue originated in USD and JPY is as follows:
2022 2021
USD 351,914,166.50 262,681,538.54
Foreign currencies
JPY 33,222,373,423.00 25,521,284,562.00
As at 31/12/2021 9,075,516,490,000 49,713,213,411 1,178,174,776,366 (823,760,000) (22,561,932,248) 570,491,625,643 87,203,093,024 7,000,480,585,004 17,938,194,091,200
Details of movements of non-controlling interest during the year are as follows: (a) Basic earnings per share
Basic earnings per share is calculated by dividing the net profit attributable to shareholders after deducting
2022
the bonus and welfare fund by the weighted average number of ordinary shares outstanding during the year,
Beginning of year 3,477,041,138,837 adjusted for bonus shares issued during the year and excluding treasury shares. Details are as follows:
Share issued during the year 9,677,769,876
Net profit for the year 1,181,497,416,917 2022 2021
Cash dividends declared (212,554,428,020) Net profit attributable to shareholders (VND) 5,310,108,591,408 4,337,411,879,802
Others (19,743,623,013) Appropriation to bonus and welfare fund (VND) (461,504,437,652) (397,214,792,234)
(ii) Dividends declared during the year: For the year ended
31 December 2021
Dividends declared by the parent company As previously As
reported Adjustment restated
Pursuant to the Resolution of the 2022 Annual General Meeting of Shareholders dated 7 April 2022, the
Company issued 182,830,658 shares as share dividends of 2021 at the rate of 20% and declared cash Net profit attributable to shareholders (VND)
4,337,411,879,802 - 4,337,411,879,802
dividends of VND 914,195,914,000 as the second payment of cash dividend of 2021 at the rate of 10% of
par value. Appropriation to bonus and welfare fund (VND) (397,214,792,234) - (397,214,792,234)
3,940,197,087,568 - 3,940,197,087,568
Pursuant to the Resolution of the 2022 Annual General Meeting of Shareholders dated 7 April 2022 and
the Resolution of No 02.07-2022/NQ-HĐQTFPT dated 21 July 2022, the Company advanced the first cash Weighted average number of ordinary
dividends of 2022 at the rate of 10% of par value. Accordingly, the Company advanced cash dividends of shares in circulation (shares) 906,099,033 182,830,658 1,088,929,691
VND 1,097,026,572,000. Basic earnings per share (VND) 4,349 (731) 3,618
Dividends and profit distribution of subsidiaries (b) Diluted earnings per share
During the year, the subsidiaries paid dividends in cash and shares pursuant to the Resolution of the Diluted earnings per share is equal to the basic earnings per share. The Company did not have any potential ordinary
General Meeting of Shareholders/Board of Directors of each subsidiary and the Decisions of the General shares to be dilutive during the year and up to the date of these consolidated financial statements.
Director of the Company on profit collection from subsidiaries.
25 NET REVENUE FROM SALES OF GOODS AND RENDERING OF SERVICES 28 FINANCIAL EXPENSES
2022 2021
2022 2021
Revenue Provision for diminution in value of investments 529,337,412,598 396,078,950,000
Revenue from sales of merchandise 4,638,266,711,059 4,331,599,350,448 Interest expense 645,725,556,308 483,995,846,804
Revenue from rendering of services 39,384,744,170,216 31,339,452,883,162 Foreign exchange losses 504,431,726,336 251,192,937,226
44,023,010,881,275 35,671,052,233,610 Others 7,875,006,582 12,919,712,815
Sales deductions 1,687,369,701,824 1,144,187,446,845
Revenue from sales of merchandise (1,208,714,000) (1,658,179,000)
Revenue from rendering of services (12,274,486,364) (12,131,509,583) 29 SELLING EXPENSES
(13,483,200,364) (13,789,688,583)
Net revenue
Unit: VND
Net revenue from sales of merchandise 4,637,057,997,059 4,329,941,171,448
2022 2021
Net revenue from rendering of services 39,372,469,683,852 31,327,321,373,579
Staff costs 2,875,497,131,852 2,577,961,710,351
44,009,527,680,911 35,657,262,545,027
Others (*) 1,650,943,559,963 1,026,649,074,630
4,526,440,691,815 3,604,610,784,981
26 COST OF GOODS SOLD AND SERVICES RENDERED
(*) Mainly included land and office rental, marketing, promotions and other selling expenses. There were no
items accounting for more than 10% of total selling expenses.
26,294,279
51,650,404
(1,833,064)
(2,016,321)
7,662,283
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 - DN/HN
Form B 09 - DN/HN
7,278,155
6,273,922
483,598
Total
FOR THE YEAR ENDED 31 DECEMBER 2022
Consolidation
31 CORPORATE INCOME TAX
elimination
(2,768,983)
(7,836,697)
(7,270,595)
(1,549,971)
1,869,501
319,530
35,099
6,356
-
Under the Enterprise Registration Certificates of the Company and its subsidiaries and prevailing tax regulations,
the companies in the Group are obliged to pay CIT at the rate of 10% on taxable profits of education services;
at preferential tax rates by location of production and business activities in the hi-tech zones; and at the rate
of 20% on taxable profit of the remaining business activities. In addition, the subsidiaries located in the foreign
countries pay CIT at the applicable tax rates regulated in those countries.
Investment,
and others
19,456,803
(4,164,764)
education
4,247,473
5,066,948
1,396,413
(276,386)
9,191,880
(173,343)
494,230
975,436
Unit: VND
2022 2021
(a) Corporate income tax – current (*)
Information technology
system integration
- CIT expense calculated on taxable income of the
services, software
current year 1,195,919,254,768 980,272,140,717
and software
(6,535,943)
solutions,
6,847,408
4,408,145
6,171,830
389,468
(63,454)
(28,037)
311,465
330,757
- Under/(Over) provision of previous years to
-
current year (2,305,587,537) (25,388,860,443)
(16,195,185)
18,915,494
14,829,721
2,709,676
2,976,729
9,045,462
(354,672)
(264,674)
1,205,731
Global IT
services
(10,632)
(*) The CIT charge for the year is based on estimated taxable income and is subject to review and possible
adjustments by the tax authorities.
(500,359)
contents
309,260
275,070
994,252
262,570
775,429
(4,469)
(5,259)
Digital
19,209
For the year ended 31 December 2022 (Currency: million VND)
-
Unit: VND
2022 2021
Staff costs 18,798,002,717,634 15,080,424,059,517
Telecommunication
Outside services 9,678,384,018,697 7,102,020,863,724
(11,688,219)
18,034,495
13,954,220
10,656,818
(1,551,365)
2,508,337
2,266,001
(1,169,182)
3,742,789
Raw materials 5,295,422,434,060 5,172,548,536,235
-
Depreciation, amortisation and allocation of goodwill 1,833,064,499,128 1,643,915,685,332
prepaid expenses
Segment revenue
long-term assets
In which:
(a)
33
186
Form B 09 - DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2022
33 SEGMENT REPORTING (CONTINUED)
(a) Segment information by the business activity of the Group (continued):
(*) Segment expenses arising from the business activities of the segment are charged directly to that segment and part of the Group’s general expenses are allocated
to that segment. Accordingly, segment expenses include cost of goods sold and services rendered, selling expenses, and general and administration expenses.
33
34
(b)
Revenue
Revenue
Company (*)
RELATED PARTY DISCLOSURES
Associate
Associate
Associate
Relationship
Key management
14,188,411
Foreign countries
18,132,581
Foreign countries
(*) Figures of related parties presented in this note include the company and its subsidiaries (if any).
| 187
34 RELATED PARTY DISCLOSURES (CONTINUED)
(*) In the year ended 31 December 2021, these people had not been appointed to the Board of Directors, Board
of Supervision, Board of Management and other key management role.
188 2022 Anual Report Consolidated financial statements | 189
34 RELATED PARTY DISCLOSURES (CONTINUED) 36 CONTINGENT LIABILITY
(b) Year end balances with related parties Restoration obligations for leased lands:
The Group signed contracts for land leases and carried out construction of buildings and infrastructure on
31/12/2022 31/12/2021
these leased lands. The land lease contracts do not explicitly state the Group’s restoration obligation for the
VND VND leased lands. Therefore, the Board of Management assessed that the Group may have future obligations for dismantling
i) Short-term trade accounts receivable (Note 5) and removing the Group’s assets on these lands and restoring the lands to their original conditions at the end
of the lease terms, and these obligations can only be ascertained when there are further events in the future,
Synnex FPT Joint Stock Company 4,930,376,723 8,249,240,502 such as additional discussion with lessors or when the governmental authority promulgates additional legal
FPT Digital Retail Joint Stock Company 28,976,052,486 12,758,880,547 documents for clarifying the lessees’ obligations when a land lease contract does not contain a clause for
land restoration obligation. Accordingly, the Group has not recognised a provision for land restoration costs
33,906,429,209 21,008,121,049
in the Group’s consolidated financial statements for the year ended 31 December 2022.
ii) Short-term trade accounts payable (Note 16)
Synnex FPT Joint Stock Company 236,365,854,400 122,863,851,131
37 EVENTS AFTER THE BALANCE SHEET DATE
FPT Digital Retail Joint Stock Company 5,475,894,295 4,889,662,632
Pursuant to the Resolution No. 01.01-2023/NQ-HĐQTFPT dated 17 January 2023 issued by the Board of
241,841,748,695 127,753,513,763 Directors, the Board of Directors approved the increases in charter capitals of the subsidiaries including FPT
iii) Other short-term payables Software Company Limited from VND 4,000 billion to VND 5,000 billion, FPT Education Company Limited from
VND 2,000 billion to VND 3,000 billion, and FPT Smart Cloud Company Limited from VND 100 billion to VND
FPT Digital Retail Joint Stock Company 1,143,136,900 270,752,646
200 billion.
iv) Short-term borrowings (Note 21)
FPT Digital Retail Joint Stock Company 40,000,000,000 1,520,000,000,000
v) Other receivables The Group’s consolidated financial statements for the year ended 31 December 2022 were approved by the Deputy
General Director of the Company on 8 March 2023.
FPT Capital Management Joint Stock Company 41,366,081,776 41,366,081,776
35 COMMITMENTS
The Group signed operating leases contracts (including: offices, teaching locations, housing and others).
Future payment commitments under the signed contracts are as follows:
31/12/2022 31/12/2021 Hoang Ngoc Bich Hoang Huu Chien Nguyen The Phuong
VND VND Preparer Chief Accountant Deputy General Director
Within one year 556,241,970,309 349,777,584,609 Authorized signatory
Between one and five years 979,550,036,663 649,261,198,412 8 March 2023
Over five years 210,861,595,768 35,036,272,303
1,746,653,602,740 1,034,075,055,324
On 25 February 2015, the Group entered into a comprehensive cooperation agreement with Tien Phong Commercial
Joint Stock Bank for supporting students who join the training courses under the 10,000-bridge engineer
program. This program aims to train Japanese (in courses from 6 to 12 months) for 10,000 students in Japan in
the next few years. The students who participate in this training course in Japan will be rewarded the financial
guarantee by the Group, equivalent to 90% of their total credit obligations arising at the bank, with a maximum
credit limit of VND 500 million per person. As at 31 December 2022, the number of students participating in
the program in Japan are 44, and the estimated guarantee amount was correspondingly VND 3,070,789,125.
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