FPT is building a new AI-focused centre in Binh Dinh province, photo Le Toan

On August 20, SSI Securities Corporation issued a “Positive” recommendation for Viettel Construction (CTR), a subsidiary of Vietnam’s largest telecommunications group, Viettel Group. This outlook is attributed to CTR’s growth potential, which is expected to be driven by the acceleration of digital transformation and the rollout of 5G technology.

“We anticipate that the ongoing mobile technology transformation will prompt CTR to expedite the construction of additional base transceiver stations. We expect the company to meet its target by the end of 2024. However, we estimate that the approximately 3,100 new stations planned for the second half of 2024 may not significantly contribute to revenue growth this year, but they will bolster revenue and profit growth in 2025,” an SSI representative said.

SSI forecasted that profit after tax attributable to parent company shareholders will grow by 11 per cent in 2024 and 17 per cent in 2025, driven mainly by the rental infrastructure and construction segments. Additionally, the deployment of 5G in Vietnam by the end of 2024 or early 2025 is expected to support CTR’s long-term growth prospects.

Experts suggested that technology stocks are increasingly capturing the attention of investors. The industry’s prospects for 2024 appear bright, with growth anticipated in areas such as AI, cloud computing, big data, and new applications like virtual and augmented reality.

Senior securities specialist Thu Phuong highlighted several promising technology stocks for investment in 2024 and beyond, including companies involved in software as a service, fintech, social networking, the Internet of Things, AI applications, e-commerce, connected TV, digital advertising, cloud computing, and semiconductors. She recommended potential tickers such as CMG of CMC Corporation, FPT of FPT Corporation, SAM of SAM Holdings, ELC of Elcom, and VGI of Viettel Global Investment, among others.

Like CTR, FPT Group has been making significant moves that are expected to drive its share value higher in the near future. On August 18, FPT commenced construction on a new AI and supporting urban centre spanning over 93 hectares in the south-central province of Binh Dinh, with a total investment of VND4.36 trillion ($181.7 million).

FPT is also expanding its business activities both domestically and internationally, having recently signed cooperation agreements with several foreign partners, including FCC Partners Inc. of Taiwan, KITZ Corporation, and Nvidia.

According to statistics from the Ho Chi Minh Stock Exchange (HSX), FPT leads the technology stock sector, having gained more than 55 per cent in the first half of this year. Despite significant fluctuations in the VN-Index, FPT’s stock has maintained a positive upward trajectory.

This stock is highly sought after by foreign funds, contributing to its market capitalisation reaching more than VND190.58 billion ($7.9 billion) as of June 30, second only to VCB and BID on the HSX.

In addition to FPT, other IT stocks such as CMG, FOX, and ELC have also demonstrated positive growth. IT stocks recorded strong gains, with a 10.18 per cent increase in June and a 53.63 per cent rise compared to the end of 2023.

CMC Corporation is focusing on AI transformation with the ambition of becoming a global digital company, aiming for a scale of billions of US dollars and a workforce of 10,000 to 15,000 employees by 2028.

Nguyen Trung Chinh, chairman of CMC Corporation, told VIR, “CMC is committed to this revolutionary transformation, not only within Vietnam but also globally. Our corporate strategy focuses on key areas such as AI and cloud computing. To achieve this, CMC has received training programmes from partners in Japan, South Korea, and the United States to build a highly trained IT workforce.”

CMC achieved remarkable financial results in 2023, with pre-tax profit soaring to VND548 billion ($22.83 million), the highest since listing on the stock exchange. In the second quarter of 2024, its ticker surged following a strategic partnership with semiconductor giant Nvidia.

“Alongside FPT, CMG consistently reached record highs, contributing to a wave of tech stock appreciation despite broader market stagnation,” Chinh added.

On the Unlisted Public Company Market, Viettel Global Investment stock was a standout performer in the first half of this year. The stock is currently trading around VND105,000 ($4.37) per share, four times higher than at the beginning of the year. The company’s market capitalisation has also risen sharply to more than VND323 trillion ($13.45 billion), now second only to VCB of Vietcombank on the general stock market.

Senior stock analyst Khanh Nguyen commented, “Technology stocks are the focus of global investors, and the Vietnamese market is no exception. The rise of tech stocks in the first half of the year is due to the IT and telecommunications sector becoming a key economic driver, laying the foundation for the development of the digital economy, digital society, and digital government.”

He further noted that since September 2023, when the prime minister engaged with technology corporations in Silicon Valley, the sector has shown signs of a vibrant period ahead. The visit by Nvidia CEO Jensen Huang to Vietnam in late 2023 and partnerships with Vietnamese tech enterprises like FPT and CMC signal an exciting future for the industry, Nguyen said.