Vietnam tech firms to expand in Japan
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Japan, one of the global leaders in implementing the 4.0 industrial revolution, is witnessing strong investment from Vietnam’s information technology (IT) firms.
Currently, there are some 20 IT companies in Vietnam with branches in Japan.
The Japanese market holds tremendous potential for Vietnam’s information technology (IT) sector, said Trương Gia Bình, chairman of FPT Corporation.
He said this at the inauguration ceremony of the firm’s sixth representative office in Japan’s Hamamatsu, Shizuoka Prefecture on Tuesday.
Vietnam’s software exports turnover to Japan is expected to increase from US$300 million to $1 billion by 2020, while the number of programmers working for the Japanese market in the future may increase from 10,000 to 300,000, Bình said.
For FPT, the Japanese market accounts for more than half of the company’s global sales.
At present, FPT has more than 400 Japanese customers, including 50 companies on the list of the largest enterprises in the world. FPT’s annual growth rate in Japan is consistently around 30 per cent.
The Vietnam Software and IT Services Association is encouraging the trend, which will hopefully lay the foundation for turning Vietnam into a software-export country, according to Bình.
“the two countries have similar cultures and strong political and socio-economic relations”
Regarding Vietnam’s advantages when investing in Japan, Bình said “the two countries have similar cultures and strong political and socio-economic relations”. Moreover, “Vietnam, with its young population and low-wage human resources, can help Japan rejuvenate its work force in the software industry. Vietnam is also the source for many Japanese companies in the latest technology fields, such as artificial intelligence, robotics and data analysis”.
On November 7, 2017, the CMC Corporation opened its first office in Yokohama City, Kanagawa Prefecture. It is expected that by 2020, there will be some 1,000 Vietnamese employees working for the Japanese market.
Smaller businesses, such as NAL Vietnam Joint Stock Company, are also planning to expand in Tokai after opening representative offices in Tokyo and Nagoya.
“Vietnam has been the second-largest partner of Japan in software and service outsourcing since 2014”, FPT Software CEO Hoàng Nam Tiến spoke at the recent Việt Nam IT Day 2018 in Japan.
According to statistics from the Japanese Ministry of Economy, Trade and Industry, the country lacks 100,000 technicians in the fields of information safety, cloud computing and mobile technology.
In terms of new technology, including artificial intelligence, big data, Internet of Things and robotics, the country is estimated to be short of 600,000 information technology professionals by 2030.
“It is a huge opportunity for Vietnamese enterprises to join hands with their Japanese counterparts to solve the problem of inadequate human resources in this field,” Tiến added.
Questions & Answers
Q.What is the expected growth in software exports from Vietnam to Japan by 2020?
What is the expected growth in software exports from Vietnam to Japan by 2020?
Vietnam's software exports to Japan are projected to increase significantly, from US$300 million to US$1 billion, by the year 2020. This growth indicates a strong market opportunity for Vietnamese IT firms.
Q.What specific advantages does Vietnam offer for investment in Japan's IT sector?
What specific advantages does Vietnam offer for investment in Japan's IT sector?
Vietnam offers a young population and low-wage human resources, which can help rejuvenate Japan's workforce in the software industry. The two countries also share similar cultures and strong political and socio-economic relations, according to Trương Gia Bình.
Q.How many additional IT professionals is Japan expected to need by 2030 in new technology fields?
How many additional IT professionals is Japan expected to need by 2030 in new technology fields?
Japan is estimated to face a shortage of 600,000 information technology professionals by 2030 in new technology fields. These areas include artificial intelligence, big data, Internet of Things, and robotics.
Q.Which other Vietnamese IT companies are expanding or planning to expand in Japan?
Which other Vietnamese IT companies are expanding or planning to expand in Japan?
CMC Corporation opened its first office in Yokohama in 2017, expecting 1,000 Vietnamese employees by 2020. Smaller businesses like NAL Vietnam Joint Stock Company are also planning expansion in Tokai after establishing offices in Tokyo and Nagoya.
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