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Vietnam's FPT scores major software contract from German utility

Software unit plans to build a campus in the country's commercial hub

FPT Software and Innogy representatives attend the signing ceremony on Jan. 25 in Ho Chi Minh City.

HO CHI MINH CITY -- FPT Software, a subsidiary of Vietnamese information technology group FPT, has signed a $100 million contract to provide technological solutions for Germany-based utility Innogy for the period 2018-2024.

FPT Software is expected to provide technological solutions based on SAP (systems, applications and products), the internet of things, and digital conversion platforms for Innogy in the next six years.

This is the most valuable contract in the nearly 20-year history of FPT Software, said FPT Software Chairman Hoang Nam Tien at the signing event in Ho Chi Minh City on Thursday.

Tien added that the contract opened the big opportunity for FPT to grow in the utility industry sector.

The deal was reached after four years of collaboration between the two sides. In 2014, FPT acquired RWE IT Slovakia and started providing IT-related services to Innogy, an affiliate of RWE.

Innogy produces, distributes and delivers sustainable energy to 23 million clients in Europe, which earned it 44 billion euros ($54.6 billion) in revenues in 2016.

Established in 1999, FPT Software provides services including software development and maintenance, ERP implementation, application conversion, embedded systems, and mobile computing. It also offers cloud computing in fields including banking, finance, telecommunications, medical, manufacturing, auto industry, and public services.

The company is among the top 100 global outsourcing providers ranked by the International Association of Outsourcing Professionals.

The software arm of FPT will be the key business of the group in the near future, as the company increasingly focuses on technology, including software, telecoms and information systems. Last year, FPT reduced its ownership of its trading and retail arms to less than 50%, and shifted more resources to the information technology and communications segments.

Also on Jan. 25, FPT Software broke ground on its $35 million F-Town 3 project in Ho Chi Minh City, to enhance its working facilities for R&D and business expansion.

The new 52,000 sq.-meter center will house more than 7,500 workers when it opens by the end of next year.

FPT Software runs three main campuses, including F-Ville in Hanoi, FPT Complex in Danang campus, and F-Town in Ho Chi Minh City, modeling Silicon Valley design, in order to provide a flexible and comfortable working environment to optimize its workers' talent.

FPT Software targets $1 billion in revenue by 2020, up from some $230 million in 2016.

FPT Software officials break ground on the company's $35 million F-Town 3 project in Ho Chi Minh City on Jan. 25.

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