Brian Jeffrey
Experts suggest that the Japanese IT outsourcing market is valued at $30 billion with a growth rate of 9-10% annually. Projections indicate that it will reach $50 billion by 2028 and $60 billion by 2030.
Vietnam’s IT companies currently generate around $3 billion in revenue from the Japanese market, comprising 10% of the total revenue. While revenue growth was at 30% annually in the past, it has recently declined to below 10%.
The Vietnam Software and IT Services Association (Vinasa) aims to boost the annual revenue growth of Vietnamese IT firms back to 20-30%. They believe this goal is attainable due to the increasing demand for collaboration from Japanese businesses and the readiness of Vietnam’s IT firms for expansion into the Japanese market.
Since the establishment of Vinasa in 2002, cooperation between Vietnam and Japan has been ongoing. Vietnam’s IT companies have evolved to become significant partners for Japan, ranking as the second largest and favored partner.
Vinasa proactively engaged with Japanese state agencies, associations, and universities to gain knowledge on training programs, IT firm support policies, business culture, and enterprise operations like sales, staffing, and technology. This understanding empowered Vietnam’s IT firms to confidently enter the Japanese market.
Vinasa has formed alliances with approximately 30 Japanese IT-related associations and organizations, including IPA, JISA, various professional associations, JETRO, AJC, and local authorities in different regions of Japan.
Recently, Vinasa collaborated with JETRO and JISA to host the 11th Vietnam IT Day in Japan, emphasizing Vietnam’s readiness to be a comprehensive IT partner for Japan’s sustainable digital economy development. Vietnamese IT firms are dedicated to collaborating with Japanese businesses.
While Japan’s economy faces challenges due to the pandemic and currency depreciation, Vietnam’s IT firms remain committed to strengthening partnerships with Japanese counterparts to enhance competitiveness and contribute to societal and economic progress.
Vietnam IT Day 2024 will see Vinasa and Vietnamese IT firms working closely to elevate Vietnam-Japan IT cooperation to new levels, aligning with the comprehensive strategic partnership between the two nations.
Past interactions between Japanese and Vietnamese IT firms mainly focused on project outsourcing and manpower provision. Presently, Vietnam’s IT companies have expanded their operations, enhanced management capabilities, and upskilled their workforce, which is highly regarded internationally.
These advancements, alongside anticipation of emerging tech trends like AI and Big Data, enable Vietnamese IT firms to offer IT system transition consulting to Japanese enterprises and develop products tailored for the Japanese market.
Notably, the growth in the size and workforce of Vietnam’s IT companies signifies a shift in the industry’s landscape, with several firms now employing thousands of workers.
