Brian Jeffrey
In the current global economy, numerous digital technology companies continue to thrive. Apart from their stronghold in regions like Japan, the United States, and Canada, Vietnamese tech firms are now exploring new territories. Some are making their first moves into France, aiming to penetrate the European market, while others have established offices in Thailand and Singapore.
“Hong Kong presents a promising opportunity. Recently, we engaged with Invest Hong Kong officials, who assist foreign entities in establishing businesses. They mentioned that a support fund could offer up to $1 million for companies looking to register there,” stated Nguyen Thanh Tuyen, the deputy head of the Authority of Information Technology and Communications.
“Multinationals, SMEs, and startups that register in Hong Kong will receive extensive support, including office space. They are encouraging Vietnamese enterprises to explore business opportunities in Hong Kong,” Tuyen added.
Despite these prospects, many Vietnamese firms remain cautious about international expansion due to challenges like the legal framework and the Chinese language barrier.
Vietnamese digital enterprises are also looking towards South Korea, where some have begun to achieve initial success.
Tuyen, who has collaborated with various Vietnamese tech firms, highlights that the availability of low-cost labor remains a key advantage for these companies compared to global competitors.
Moreover, the Vietnamese workforce is characterized by resilience, a willingness to learn, and strong partnership traits. These qualities facilitate entry into selective markets like Japan, where cities such as Tokyo, Fukuoka, and Kanagawa are actively welcoming Vietnamese businesses.
Experts observe that in significant markets and tech hubs like the U.S. and Japan, the tech labor pool is aging and slower to adopt new technologies. In contrast, Vietnamese tech firms benefit from a youthful workforce that adapits quickly to technological advancements, providing a competitive edge in market expansion and revenue growth.
Nevertheless, entering foreign markets remains a challenging journey for Vietnamese tech companies.
Many have yet to establish a physical presence abroad, often resorting to hotel meetings with potential partners. This situation hinders their ability to build trust and secure collaborations.
Only a few companies, like NTQ and FPT, have managed to set up offices in Tokyo, demonstrating their capability to compete with larger tech corporations.
Obtaining labor visas presents another significant hurdle. In multiple international markets, Vietnamese workers must secure labor permits, rather than tourism visas, as working without valid permits can lead to fines and damage to their reputation.
“Many businesses are eager to have foreign experts collaborate with their Vietnamese teams and also want to send their local teams abroad. In both scenarios, obtaining labor visas for staff is a time-consuming process,” he expressed.
To address these challenges, technology firms require assistance from the government, the Ministry of Foreign Affairs, and various organizations.
Additionally, improving foreign language proficiency and adapting to local cultures are crucial for Vietnamese digital firms, according to Tuyen.
To motivate Vietnamese digital technology companies to venture internationally, the “Make in Vietnam Digital Technology Product 2024” Award, organized by the Ministry of Information and Communications (MIC), includes a category for “Outstanding digital technology products for foreign markets.”
In its second year recognizing exporting technology firms, MIC has expanded its definition of Vietnamese tech companies.
“Vietnamese tech companies also encompass those established abroad with at least a 51% Vietnamese ownership (previously, only companies founded in Vietnam were recognized).
Since the “Make in Vietnam” initiative began in 2020, Vietnamese tech firms have increasingly focused on building their brands and images in the global market.
For instance, NTQ Solution has created over 20 products labeled ‘Made by NTQ,’ and international partners have commended the ‘Made by FPT’ technology ecosystem.
