Japanese tech firms to boost IT outsourcing to Vietnam
TOKYO, JAPAN — Japanese tech companies are set to increase outsourcing of research, design, production, and testing work to Vietnam, as announced by the Vietnam Software and IT Service Association (VINASA).
This decision was highlighted during Vietnam IT Day 2024, which took place on August 6 in Tokyo, Japan.
VINASA Chairman Nguyen Van Khoa emphasized that digital technology cooperation between Vietnamese and Japanese tech firms is rapidly advancing, enhancing the competitiveness of enterprises in key business sectors of both countries.
Vietnam’s rising role in Japan’s digital transformation
Vietnam has emerged as a favored partner and the second-largest collaborator in Japan’s digital transformation efforts. It is estimated that hundreds of Vietnamese digital firms have established offices or legal entities in Japan, employing substantial workforces. This trend reflects Vietnam’s growing importance in Japan’s IT landscape.
Strengthening the IT workforce through education partnerships
To further bolster high-quality IT manpower, the Post and Telecommunications Institute of Technology (PTIT) under Vietnam’s Ministry of Information and Communications has entered into agreements with three Japanese enterprises and educational institutions.
A notable collaboration is the 3+2 training joint program between PTIT and Aizu University. This program allows PTIT students to study for three years in Vietnam before transferring credits to Aizu University for two additional years to earn a master’s degree.
Additionally, PTIT has partnered with Japanese company Agest to support training and internships for PTIT’s Robotics and AI students in Japan.
Another collaboration with GAG, a Japanese training academy, focuses on Japanese language and cultural training, as well as providing digital university education to the Vietnamese community in Japan.
Expanding business networks and future trends
Vietnam IT Day 2024 continues to expand business networks and promote Vietnamese IT firms in the Japanese market. The event also facilitates discussions on future cooperation trends between the two nations over the next 5-10 years, particularly in system digital transformation, AI, and green transition.
Participants noted the increasing trend of Japanese firms outsourcing nearly all production chain activities, including research, design, production, and testing, to Vietnamese partners.
Noriya Tarutani from the Japan External Trade Organization (JETRO) highlighted that Japanese investments in Vietnam’s IT sector are significant, with 59 investment projects recorded by 2023, accounting for 20% of Japan’s total investment in Vietnam.
This growing collaboration underscores Vietnam’s strategic role in Japan’s digital transformation journey, paving the way for deeper bilateral ties in technology and innovation.
