Group Assignment

COURSE: Macroeconomics _ ECO121

Lecture: Nguyen Thi Thanh Nhan

FPT Corporation
MACROECONOMICS ANALYSIS
Group members _ Class MKT1703

1.Nguyễn Thị Kim Ngân-SS170088

2. Lê Phạm Anh Thư - SS170126

3. Hà Phương Linh- SA170008

4. Nguyễn Thị Thanh Ngân - SS160379

5. Cao Hoàng Tuyết Ngân - SS160387

6. Khúc Trọng Thái Sơn-SA170107

7. Trần Tuấn Nghĩa - SS170100

1. INTRODUCTION………………………………………………………………...2

2. BODY …………………………………………………………………………….3

2.1. Macro environment _PESTLE framework _ Economic environment………..3

2.1.1. Economic conditions………………………………………………………3

2.1.2. Economic policies…………………………………………………………6

2.1.3. Economic system…………………………………………………………6

2.2 Strategies and applications………………………………………………………..7

3. CONCLUSION……………………………………………………….…………..8

4. REFERENCES………………………………………………………..…………8

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1. Introduction

Table 1. General introduction

VNR500 rating 16(B2/2021)-42(B1/2021)

Tax code 0101248141

Stock code FPT

Head office FPT Cau Giay Building, No. 17 Duy Tan Street - Dich
Vong Hau Ward - Cau Giay District - City. Hanoi

Tel. 024-73007300

Fax 024-37687410

Website https://fpt.com.vn/

Year of establishment 13/09/1988

(Source: VNR500, 2022)

From such history, On December 19, 2008, the company officially changed its name to FPT
Joint Stock Company. After many years of operation, FPT is currently the largest information
technology corporation in Vietnam in terms of IT technology and services, led by FPT. In 2020,
FPT expands its geographical reach and is also working to develop two important industries by
2021: comprehensive digital transformation and investment in solid platforms.There are
numerous advantages for organizations in developing a business model. FPT Association is
focusing on making in 3 areas of advancement, broadcast correspondences and preparing. To
transform into a mechanized affiliation and be among the vitally 50 beginning to end DX game
plan and expert centers overall by 2030, FPT is at this point making strides toward this goal.
FPT promises to offer top notch progressed organization and action experiences considering

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stages with fundamentally consistent data in the years 2021 to 2023 with an ultimate objective
to win the trust of associations. To achieve this, FPT has devised a method with a colossal
design and a congruence between the three factors. With major corporate clients, FPT will put
more complement on creating and propelling exhaustive DX organizations from consultancy to
execution. For SME clients, we intend to give an In all cases stage that can be consolidated with
other outcast organizations and courses of action. With each individual client, by executing
innovative organization systems and stages, FPT wants to give them an astonishing association
with the association. FPT bases energetically on the development types of progress in two
pressing areas: (1) attempting to make fundamental stages and headways; and (2) supporting
client experience and practical outcomes. The chief strength of FPT is its laborers.
Consequently, we consistently work to plan a serious compensation strategy that propels
ingenuity and improvement. FPT's primary objective has the initiating mission that is conveying
the Internet to people of Vietnam and guessing that every Vietnamese family ought to utilize
somewhere near one help of them. FPT plans to convey the best understanding to associations
by 2021-2023. Eventually, FPT needs to transform into the vitally 50 associations in automated
change by 2030. FPT was assigned for some remarkable achievements.Firstly, FPT was doled
out for an incredible business by Vietnam Programming and IT Organizations Connection
(VINASA). Secondly,FPT was in like manner relegated for the brilliant associations in two
groupings in Asia, one is for market, one is the performance.In addition,FPT Organization has
filled in monetary and import-exchange areas.

2. Body

2.1 Macro environment _PESTLE framework_Economic environment

2.1.1 Economic conditions

a) Stage of development in economy (Business cycle)

Bao cao thuong nien 2019

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In the past, the Vietnamese economy had to go through the 2008 economic crisis.
Domestic companies were also affected by that crisis. And FPT Corporation has also
suffered some effects from this incident. By 2010, Vietnam's economy gradually recovered
but at a rather slow pace and there were still many possible risks and risks. But with its
efforts, in 2010 FPT Corporation had a total revenue of VND 20517 billion and increased
by 10 compared to the previous year (static2.vietstock.vn). And within 2 years from 2010
to 2012, when the economy showed signs of slowing down ( vepr.org.vn). The GDP of
FPT Corporation also showed signs of a decline from 6.78 percent to 5.03 percent. And
then when the economy gradually stabilized after the crisis, FPT's GDP also increased
gradually over the years. Specifically, from 5.03 percent in 2012 to 7.08 percent in 2018.
And GDP in 2019 is 7.02 percent; there is a decrease of 0.6 percent compared to 2018.
And as of 2019, FPT Corporation has had two with a GDP exceeding 7 percent..
(Bao-cao-thuong-nien-2019)

b) Economic resources

First of all, around the world, Vietnam is recognized as a country with generally
stable political institutions, which fosters economic development and promotes
private sector dynamism. This is a tremendous benefit for FPT to operate in such
a market like that. Additionally, technology development is also considered as a
crucial aspect in the success of FPT corporation. Because of the rapid
development of the information technology industry today, product life cycles are
relatively short, necessitating ongoing research and development by
manufacturers to suit the expectations of consumers. World Bank assessment
figured out that the spending of almost Vietnamese companies is much lower
compared with that of its neighbor “Cambodia" and even among the lowest in
Southeast Asian countries. In specific, a company on average spend only 1,6%
of their annual revenue on R&D products. For that reason, The bad state of the
R&D system has led to the operation of FPT with limited, rigid, and unproductive
resources.

Moreover, in the region, productivity of VietNam's labour force remains poorer

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 Laos. It is worth noting that the gap in worker productivity between Vietnam and
other countries is widening. On the other hand, Vietnamese education is
increasingly seeking to interact with other Southeast Asian and global countries.
The education level of Vietnamese people is gradually increasing over the time,
now people usually obtain higher education, not only secondary or high school,
but also ungraduate or postgraduate education. That factor will play an important
role in creating a dynamic environment for FPT.

c) The level of income

Profits from technology grew by 34%. Revenue and EBIT for the technology
industry were VND 13,395 billion and VND 1,519 billion, respectively. which saw
a significant increase in software revenue and software exports of VND 8,443
billion. The telecom industry's revenue was VND 8,831 billion, up 15%, or 102%
of the year's budget. Profits from international markets rose 27%. Globalization
serves as the growth engine for FPT when the global economy is shaky. FPT
received an additional 9,097 dollars from abroad in 2018. FPT made 1,679 from
this service employing the focus on digital transformation strategy. For
commercial purposes, the group concentrates on growing and offering services
to its large enterprise clients. Delivering platforms like Al, Blockchain, RPA, and
cloud IT infrastructure operation management in particular. Small and
medium-sized business clients are the focus of FPT's ongoing development and
expansion of its suite of Made by FPT products. The company strives to provide
the best customer service possible. Technological: FPT will concentrate on two
areas of technology development: platform development and improved user
experience. Furthermore, the business. Additionally, the company supports
research and development in areas such as Blockchain, AI, cloud computing,
etc. The company's most valuable asset is its people. The Group thus
consistently emphasizes policies that promote competition, encouragement,
innovation, and creativity. The group will offer its members a fair, open, and
nondiscriminatory workplace as well as circumstances for skill development.

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2.1.2 Economic policies

When interest rates increase, it will increase the cost of capital and the profit is reduced
. Especially in the FPTs technology stock .The stock is reduced about 25% from its peak
and its trading from one-year low.In the second quarter, the domestic Information
Technology segment recorded a 19.6% decrease in revenue compared to the same
period last year. However,when the interest rate decrease, it can help the enterprise
them have more abilities to borrow more money and invest for the company, make them
increase profit for company.This also help FPT,Specifically, as of June 30, 2022, FPT
Telecom has VND 10,772 billion of short-term debt and VND 657 billion of long-term
debt. An increase of nearly VND 5,000 billion compared to VND 6,299 billion for
short-term loans and VND 141 billion for long-term loans in the same period in 2021.

Tax causes businesses to pay a lot, especially large enterprises like FPT. They are
subject to many taxes such as import and export tax, value added tax, personal income
tax and many other taxes, making profits not as high as the original.The exchange rate
will greatly affect business activities, especially import and export companies because it
depends a lot on the currency. If the domestic currency decreases, the foreign currency
will earn the same level when The exchange rate in the local currency will also reduce
profits a lot. The exchange rate has also affected FPT, although not much.

2.1.3 Economic system

The best economic system for the selected organization is mixed economy. Because of
the fields that FPT participates in, especially technology and economics, it requires
constant innovation. The first reason when choosing a mixed economy is a mixed

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economy has a free market economy part. And in the free market economy, businesses
have to actively decide on issues like what to produce and how to earn revenue. So
they will constantly innovate and develop themselves to find ways to create the best
products, at the most reasonable prices. So it is this market that creates the competition
that leads to the innovation needed for the business. However, when the country is
developing and integrating with the international economy, especially FPT enterprises
need to integrate into the international economy. This will have a lot of foreign
businesses coming and competing with FPT businesses. Since then, the competition
will become very fierce and create some bad cases for FPT enterprises as foreign
enterprises will dumping. Therefore, the market cannot be completely free, but there
should be more state control and a mixed economic market is reasonable. The state will
help protect our business to compete within the law. The second reason, Fpt is a joint
stock company which is a separate legal entity, for the owners have limited liability
according to the shares they own. Therefore, in many bad cases such as economic
crises, the state budget is also used to save sizeable joint stock companies from the
risk of bankruptcy.

2.2 Strategies and applications

Today, FPT Corporation has a vast influence on the world economic market. Especially
in areas where FPT is the leader, such as information technology. That success is
thanks to the right strategies and directions of the leaders of FPT Corporation. First, is
the Internationalization Strategy. Overcoming many difficulties, FPT decided to export
software services to the world. Since then, FPT software has become the largest
company in Vietnam in this field. In 2014, providing outsourcing services in the top 100
IAOPs global. This service has provided the application and transformation of the
Singapore market information technology system. Access to more than 50 famous
information technology companies in Japan. This has made FPT influential and globally
connected in information technology. This is the first step towards world economic
development. Second, FPT uses a business expansion strategy. FPT has brought its
brand closer to millions of domestic and foreign customers. The FPT system has had a
large scale and coverage in all major countries: the UK, USA, Japan,... and more than
14 countries worldwide. Provide services and products that help drive the quality of
foreign business. Providing solutions related to telecommunications, banking, and

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finance. FPT also expanded its global reach in 2020 by opening four new branches in
Canada, the Middle East, India, and Costa Rica. This brings the total number of offices
in 25 countries and territories to 52. Customers' needs in key markets like the United
States and Asia-Pacific are met.Besides helping the cooperation between countries
more long-term. From there, it brings huge profits and revenue to foreign countries. This
has created favorable conditions for the existence and development of FPT and its
success today.

3. Conclusion

On December 19, 2008, the company officially changed its name to FPT Joint Stock Company.
FPT Corporation develops with 3 main business sectors: technology, telecommunications and
education. In order to become a digital organization and be among the top 50 end-to-end DX
solution and service providers globally by 2030, FPT is still making progress toward this goal.

4. References

<https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?end=2020&locations=VN&start=2000>

<http://static2.vietstock.vn/data/HOSE/2010/BCTN/VN/FPT_BCTN_2010.pdf>

<http://vepr.org.vn/upload/533/20131106/NC-3052.pdf>

<file:///C:/Users/Administrator/Downloads/Bao-cao-thuong-nien-2019.pdf>

https://corporatefinanceinstitute.com/resources/economics/mixed-economic-system/

https://dautuvietnam.com.vn/doanh-nhan/goc-nhin/fpt-va-chien-luoc-cua-ong-truong-gia-binh-ha
i-trai-ngot-sau-nhieu-nam-a17561.html

https://chungta.vn/kinh-doanh/fpt-hien-dien-tai-18-quoc-gia-1089974.html#:~:text=%C4%90%E1
%BA%BFn%20th%E1%BB%9Di%20%C4%91i%E1%BB%83m%20hi%E1%BB%87n%20t%E1
%BA%A1i,t%E1%BA%A1i%20c%C3%A1c%20qu%E1%BB%91c%20gia%20n%C3%A0y.

https://tapchitaichinh.vn/kinh-te-vi-mo/dieu-chinh-ty-gia-tac-dong-the-nao-den-chung-khoan-341
39.html

https://s.cafef.vn/fpt-514815/co-phieu-cong-nghe-gap-kho-truoc-xu-huong-tang-lai-suat-fpt-lieu-c
o-ngoai-le.chn

https://markettimes.vn/fpt-lai-rong-hon-3-400-ty-dong-sau-8-thang-tang-truong-30-so-voi-cung-k
y-nam-truoc-3996.html

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