FPT Corporation reported revenue of 16,658 billion VND in Q2, a 9.2% increase compared to the same period last year. While the company's expenses increased across the board, financial operating revenue more than doubled, reaching 1,237 billion VND. This increase was attributed to interest income from deposits and favorable exchange rate fluctuations.
As a result, FPT's pre-tax profit reached 3,141 billion VND, a 17.7% year-on-year increase. Profit after tax attributable to shareholders of the parent company reached 2,257 billion VND, a surge of over 20%. This marks a record profit for the company since its establishment in 1988.
FPT wasn't the only company in the tech and telecom sector to experience significant profit growth this quarter.
Viettel Global, Viettel's subsidiary operating in international markets, generated 10,514 billion VND in revenue last quarter, a 21% increase year-on-year. After deducting expenses, pre-tax profit reached 3,976 billion VND, a 76% increase.
According to the company's explanation to the State Securities Commission, the positive Q2 results were driven by growth in its subsidiaries and affiliates in foreign markets. Viettel Global currently holds the largest market capitalization in the tech and telecom sector, exceeding 232,000 billion VND.
CMC Group, Viettel Construction, and FPT Telecom also reported pre-tax profit increases of 21.5%, 12.4%, and 21% respectively. VNG returned to profitability with 15 billion VND after 14 consecutive quarters of losses.
According to a market strategy report by KB Securities (KBSV), opportunities for tech companies are "quite promising" amidst market instability. The KBSV analysis team cited a report by business consulting firm Infosys, which forecasts global economic growth of only 2.2% this year due to trade tensions. This will lead to a slowdown in technology spending growth this year, to around 7% year-on-year.
Despite this, KBSV analysts believe that Vietnamese companies have an advantage in securing more contracts in technology management, thanks to an abundant workforce and reasonable costs.
The Law on Digital Technology Industry, passed by the National Assembly in June and effective from the beginning of next year, will provide further support for the development of the tech and telecom sector.
With the goal of doubling or tripling the growth rate of the digital technology sector compared to GDP growth, Vietnam has introduced many incentives for technology projects, including long-term land rent exemptions, R&D expensing of up to 200% of actual costs for tax reduction, and visa extensions for foreign experts. According to KBSV, these policies will help Vietnam continue to attract investment capital into the technology sector, benefiting companies in the industry.
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A "Make in Vietnam" 5G station displayed at the 2025 Science and Technology Festival. Photo: Anh Dung |
A "Make in Vietnam" 5G station displayed at the 2025 Science and Technology Festival. Photo: Anh Dung
An Binh Securities (ABS) also forecasts positive long-term growth for the tech sector due to the demand for artificial intelligence (AI). According to a report by data company IDC, AI spending in the Asia-Pacific region is expected to reach 175 billion USD in the next three years, with a compound annual growth rate (CAGR) of 33.6% during the 2023-2028 period.
The telecom sector is also expected to continue to improve, according to ABS. One reason is the increasing saturation of the broadband market amid growing demand for AI and data security, leading many large tech companies to invest more in data centers.
At the close of trading on 7/8, FPT shares reached 106,200 VND, VGI was at 76,200 VND, CTR at 92,700 VND, FOX at 74,500 VND, and CMG at 40,700 VND.
Despite recording significant profits in the first half of the year, tech and telecom stocks have bucked the general market trend. While the VN-Index, the benchmark index for the stock market, has increased by 355 points (nearly 25%) since the beginning of the year to 1,581 points, shares of the aforementioned tech companies have declined by 17-25% during the same period. Only FPT Telecom's FOX stock, up 21%, has seen an increase since the start of the year.
Trong Hieu
