CMC sets billion-dollar revenue target

Thesedays,manylocalandforeignenterprisesaretalkingaboutaVietnamesetechnologygroupcalledCMC.ItispartlybecauseCMC'schairman,NguyenTrungChinh,hasannouncedtheGroup'sambitiousgoalsandvisionsaswellasdeliveredsomeshockingstatementswhichreceivedfullattentionfromthebusinesscommunity.

Initsvisionto2023andthedevelopmentstrategyto2025,CMCsetstheambitioustargetofbeingaUS$1billioncompanyby2023,housing10,000employeesamiddigitaltransformationplans..CMCisdeterminedtobecomethenumber1providerofcoreICTsolutionsandareliablepartnerofdomesticandforeigncompaniesinthedigitaltransformationprocess.ThisisachallenginggoalasCMCwillhavetodriveitssalesupasmuchas4timesanditsworkforce3timesinjust3-5years.However,thecompanyisveryconfidentanditisachievinghighlysignificantbreakthrough.

Threeyearsago,CMCwasoneofthefirstbusinessesinVietnamannouncing adigital transformation strategy. CMCChairmanNguyenTrungChinhdescribedthecompany'sdoggeddeterminationofdigitaltransformationastheimageofamoultingbutterfly.Infact,CMCChairmanhasbeencarefullypreparingforitsdigitaltransformationaswellascollectingtheexperience whileparticipating inthe internationalconferencesandmeetingmanyotherglobalcorporations.

To lead the global trend of digital transformation in Vietnam, after only 3 years of preparation, CMC has officially launched C.OPE2N - an open ecosystem to unlock digital enterprises' potentials. CMC shares its knowledge of digital transformation with everyone. With the C.OPE2N system, all problems involving intelligence, speed, productivity, and connection will be solved, helping businesses, organizations, especially small and medium enterprises to access the digital economy.

When CMC introduced C.OPE²N in some countries, many foreign partners were surprised, wondering why a Vietnamese company could think of building an open ecosystem for both local and foreign business customers.

CMC Corporation has decided that without such an ecosystem, it is impossible for them to partner with Cloud providers like Amazon, Google, Microsoft. More importantly, with this ecosystem, CMC will "knock on the door" of hundreds of USD billion market such as Japan, South Korea, and Europe. "US$1 billion revenue is a challenging number which we can't achieve without a digital transformation strategy.

Fortunately, we are on the right track and that goal is becoming a reality", Chinh affirmed.

In fact, strategic partner Microsoft has asked CMC to commit this ratio to their services right in 2019. In addition, the new strategic shareholder, Samsung SDS, which holds 25% of CMC shares, is also a great boost for CMC to reach its goal.

The business deal of CMC and Samsung SDS revealed great ambitions of both sides to tap into new markets abroad. For Samsung SDS, the deal provides it with a good springboard to get into the region. On the other side, CMC will expand oversea market faster, typically Japan, South Korea, Southeast Asia, Europe, North America ... In particular, Samsung SDS is considered the main driving force for CMC to boost its sales up to 4 times in a short time.

Thus, digital transformation is no longer a trend, but a life-and-death strategy to CMC as the world has transformed to the digital economy, enterprises that want to get the success would have abilities to join into this economy.

 CMC'S TRIPOD STRATEGY

CMC is accelerating to gain its ambitious target of US$1 billion revenue. The recent promotions of 6x, 7x, and 8x generations to the new Board of Directors under the leadership of Captain Nguyen Trung Chinh is an example.

CMC Chairman Nguyen Trung Chinh believes that the leadership, experience, and vision of the previous generation combined with the creativity, bravery, and aspirations of the youth will help CMC to make breakthroughs in the digital transformation process.

Upon the promotions and standardization of its leadership associated with each key business segment, CMC has strongly restructured, organized production and business activities following major spearheads: solutions and technology; telecommunication; international business.

In the coming years, CMC will focus on international business to realize its strategy of becoming a global corporation, providing digital services to regional and global enterprises.

In the fiscal year 2020, CMC is planning to achieve revenue of VND 6,009 billion and pre-tax profit of VND 359 billion, respectively higher than 12% and 16% compared to 2019. In which, the firm's international business division is expected to increase 71% in revenue and triple in profit.

CMC's ambitious plan is based on a forecast that the hardware market in 2020 will grow higher 6% over 2019, while the information technology and software services market continues to maintain a high growth rate of 11% and 13% respectively.

CMC IS DETERMINED TO GRASP EVERY OPPORTUNITY

Recently, CMC has given the technology community a shock when announcing plans to make Vietnam the Digital Hub of the Asia-Pacific region, on par with others in Hong Kong, Singapore, and Japan. According to Chinh, Vietnam is considered to be eligible for becoming the next Digital Hub of the region.

Thanks to the ideal geography and coastline, Vietnam can become a central point for data storage and Internet traffic hub of global telecommunications, information technology, and digital content providers.

To turn its ambition into reality, CMC is making strong moves. Recently, the Group has proposed an investment of 12,000 billion VND in the construction of CMC Creative Space in Da Nang, divided into 2 phases, creating about 2,000 jobs in phase I and 10,000 jobs in phase II. Creative Space CMC will have the research and development area; software production and information technology zones; Internet hubs; data center; housing area for experts and staff with full amenities.

"ThecityauthoritywillsupportandcreatethemostfavorableconditionsforinvestorssothatprojectsinDaNangwillbedeployedassoonaspossible",saidDaNangPeople'sCommitteeChairmanHuynhDucTho.

Inaddition,CMCisbuildingahigh-connection,large-scaleDataCenter inTanThuan Export Processing ZoneinDistrict7,HoChiMinhCity(Tier3IDCIIIAstandards)andSaigonHi-techPark(SHPT) in District 9. CMCisalsothe investoroftheconstructionofGreaterMekongSubregion-InternetExchange,locatedatanetwork-neutralDataCenter,whichallows interconnectionbetweenmultipletelecommunicationcarriersand/orcolocationproviders.

TheGrouphasalsoinvestedintheconstructionoftheCrossVietnamCableSystem,(CVCS),withatotallengthofmorethan2,500km,runningfromLangSontoTayNinh,across19provincesandcitiesacrossthecountry.TheCVCSroutehasatotalinvestmentofmorethanVND500billion andistheonlycablelineinVietnamthatconnectsdirectlytotheSoutheastAsiamainlandcablenetwork-A-Grid.

ManypeoplewillwonderwhyCMCisdoingsomanythingsatthesametime.ApartfromthetargetofUS$1billion inrevenue,onethingthatismorecrucialforCMCco-founderisnotmissingtheopportunity.NguyenTrungChinhhaslearnedthepowerfullessonandfelthauntedbyNokiaCEO'ssayingduringapressconferencetoannounceMicrosoft'sacquisitionofNokia:"Wedidnothingwrong,butsomehow,welost."

TheworldchangedtoofastforNokia.Theiropponentshadbecometoopowerful.Nokiamissedoutonlearning,theymissedoutonchanging,andthustheylosttheopportunityathandtomakeitbig.Notonlydidtheymisstheopportunitytoearnbigmoney,buttheyalsolostthechanceofsurvival.

"CMChasturned27yearsoldandisgatheringstrongresources.WeallshareadreamthatCMCwillendure.Ifyou wanttodothat,thereisonlyoneway:continuousinnovation and keep going", Mr. Nguyen Trung Chinh affirmed./.