Brian Jeffrey
Growth in Fujinet’s Operations
During the Japan ICT Day 2024 in Hanoi, An Ngoc Thao, deputy secretary general of VINASA (Vietnam Software & IT services), highlighted the impressive performance of Fujinet in HCM City. The company has experienced remarkable growth rates of 20-30% despite only a slight increase in personnel. Thao noted that this success stems from optimizing human resources and effectively applying AI technology.
Fujinet has dedicated three years to developing an AI-based automated text extractor using OCR technology, which initially generated no revenue but has since resulted in significant income this year as numerous Japanese clients began placing orders.
The AI technology, developed by Fujinet’s team, addresses various challenges including identity card verification and text recognition. Thao emphasized that AI has revitalized BPO (business process outsourcing) services for many Vietnamese companies, particularly after experiencing a decline in BPO projects for Japan due to low profitability and high investment costs.
With AI reducing necessary investments—by allowing machines to perform straightforward tasks like letter and image recognition—the demand for BPO projects has begun to rise again. These projects, now focused on AI-enhanced services, hold greater financial value.
Thao noted that projects utilizing advanced technologies, especially AI, command higher fees, ranging from $4,000 to $5,000 per month per employee.
NTT e-MOI’s Advancements with AI
After executing numerous projects for Japanese clients over eight years, NTT e-MOI has also successfully integrated AI into its operations. Nguyen Thi Anh mentioned a shift from previous tech trends like blockchain to a combination of low-code/no-code platforms with AI, which significantly accelerates software development timelines.
Through leveraging these new technologies, NTT e-MOI has shortened project completion to a quarter of the time usually required. They project a targeted growth rate of 150% annually, driven by AI and low-code/no-code innovations.
Changing Dynamics in Japan-Vietnam Collaboration
Analysts have observed a shift in attitudes from Japanese partners, who are now more receptive to collaboration with Vietnamese IT firms. In contrast to their earlier selective nature, Japanese businesses increasingly value Vietnamese engineers’ skills and seek their insights for long-term partnerships.
NTT plans to broaden its BPO services beyond data entry to include high-quality business analysis, requiring staff fluent in Japanese. This expansion will likely grow their workforce to hundreds in the coming years.
Emerging Opportunities in the Japanese Market
VINASA’s Thao referenced insights from Junya Kawamoto, Chair of the JISA International Cooperation Committee, stating that not only private companies but also public sector organizations in Japan are turning to Vietnam for services, compensating for Japan’s workforce shortages and recognizing the skills of Vietnamese professionals.
Kawamoto shared that Japan’s IT service industry generated $200 billion and employed 1.17 million people in 2022. The pandemic has revealed limitations in Japan’s public sector IT systems, prompting the establishment of the Japan digital agency and new initiatives like Cloud Government and DFFT (Data Free Flow with Trust).
Furthermore, in the private sector, Japan’s METI (Ministry of Economy, Trade and Industry) is actively promoting digital transformation through its DX Stocks initiative.
