Vietnam has grown into Japan’s second biggest information-technology partner over the past decade, trailing only China.
With competitive cost burdens, highly qualified human resources, and preferential tariff and tax schemes, Vietnam has welcomed investment from nearly 80 Japanese IT companies. Another 20 Japanese companies are expected to enter the Vietnamese market later this year.
According to a Vietnam Software and IT Services Association (VINASA) survey, 61 percent of business respondents cited language barriers as the most constricting limit on Vietnamese- Japanese cooperation.
The survey noted businesses that began cooperating with Japan in 2012 have enjoyed high growth rates of 30–50 percent.
Japan Information Technology and Services Global Affairs Vice President Junko Kawauchi said Japanese businesses and their employees feel comfortable working with Vietnam.
Ms Kawauchi acknowledged improvements are needed in project management capacity, management quality, and the English and Japanese language abilities of both Vietnamese and Japanese engineers.
VINASA Vice President and General Secretary Pham Tan Cong affirmed Vietnam’s IT development is on the right track.
The Japanese software market, with annual expenditure exceeding US$130 billion, is the fourth largest in the world and is constantly seeking foreign partners.
Over the past ten years, Vietnamese businesses have reaped impressive revenues and international prestige from participating in the VINASA’s Japanese market programmes.
The current Japanese demand for international partners offers Vietnamese businesses unparalleled opportunities to push IT cooperation to higher levels.
