Synnex FPT (Synnex's JV in Vietnam) closed its 2021 un-audited financial report, with revenue reaching a record high of NT$25 billion and a substantial increase of nearly 60%; net profit of NT$1.01 billion also reached a record high, which has doubled significantly by 112% compared with the previous year. Synnex FPT is optimistic that 2022 will continue its strong growth in 2021.
Synnex FPT is a distribution company joint ventured by Synnex and Vietnam's largest information technology service provider FPT Corporation at the end of 2017. It is now the largest 3C distributor in Vietnam, especially in laptop & desktop PCs and various IT commercial products, the market share has a leading edge. In recent years, Synnex FPT has entered the market of smart phones, components, and IT consumer products, and continued to expand its business scope.
Vietnam has a long and narrow terrain, with a distance of more than 1,600 kilometers from north to south. In addition to the differences in the customs of North and South Vietnam, almost all distributors can only operate in either Hanoi (the capital in North Vietnam) or Ho Chi Minh (the largest city in South Vietnam). Due to its excellent operational management and market development capabilities, Synnex FPT has been able to set up business locations and logistics centers in four major cities, and deeply cultivate local channels, becoming the only company in Vietnam whose business scope can cover 63 provinces in Vietnam with more than 3,800 channels of various types. Therefore, if international branding vendors want to enter the Vietnamese market, Synnex FPT will be their first choice, which will drive the continuous growth of Synnex FPT's business.
Vietnam is currently the third largest country in ASEAN in terms of economic size and population, and it is still growing rapidly, and foreign investment continues to increase. According to statistics, Vietnam's economic growth rate has remained above 6-7% in the past 10 years. Even with the outbreak of the epidemic in 2020, Vietnam is still one of the very few countries in the world that maintains positive growth. At the same time, foreign investment has also continued to expand its presence in Vietnam. In the past three years, the annual Foreign Direct Investment (FDI) has reached more than US$30 billion, of which 53% has been invested in manufacturing, creating lots of employment opportunities and driving Vietnam's per capita income to almost double in the past 10 years. According to McKinsey's estimates, Vietnam is expected to add 36 million people to its middle class in the next 10 years, and the proportion of the population will jump from the current 30~40% to 70~80%, forming a huge main consumer group and bringing unlimited business opportunities in the domestic market.
Looking forward to 2022, Synnex FPT is optimistic about this year's business momentum. In terms of external environment, the Vietnamese government has approved a stimulus package worth nearly US$15.2 billion in 2022, and increase infrastructure to achieve the goal of annual GDP growth of 6.5~7.0% in the next five years. In recent years, the expansion of many high-tech supply chains in Vietnam will directly drive the demand for production and IT equipment procurement. In terms of internal operation, Synnex FPT will not only continue to expand its market share in the existing advantageous fields, but also make breakthroughs in the mobile phone business. At the same time, it will also fully transform into a Supply Chain Service Provider in 2022, actively using digital capabilities, deploying various operation management services, and expanding service projects for upstream and downstream customers, so as to deepen mutual cooperation and drive continued strong growth in the next few years.