Japan holds promise for Vietnamese IT firms

Vietnamese IT firms reported earnings of over $2 billion from foreign markets in 2022, 60 per cent of which came from Japan.

According to the Vietnam Software and IT Services Association (VINASA), Japan spends about $30 billion on software outsourcing annually, and it is estimated that Vietnamese companies account for 6-7 per cent of this. Earnings from the market made considerable contributions to the $14 billion revenue Vietnam’s software and technology services sector posted in 2022, which maintains a growth rate of 20-40 per cent annually.

Japan has long been the first choice of Vietnamese IT businesses seeking opportunities abroad.

Cooperation between Vietnam and Japan in information technology began in the early 2000s when the domestic software and information technology service industry initially took shape. In the ten years from 2003 to 2013, Vietnam received support from Japanese partners, who helped provide training in techniques, technology, standards, human resources, and business culture. The following ten years then witnessed the mushrooming of Vietnam’s IT industry.

As a result, Vietnam is currently the second-largest partner of Japan in the field of software and information technology services.

The number of Vietnamese businesses supplying IT services to Japanese partners has amounted to nearly 500. Besides leading players like FPT, others with some 1,000 employees include Rikkeisoft, Luvina Software JSC, Fujinet Systems JSC, VMO Holdings, VTI, and Hybrid Technologies, among others.