At the Japan ICT Day 2024, held in Hà Nội, industry leaders discussed how Vietnamese firms are key players in Japan’s digital transformation. Photo chinhphu.vn

HÀ NỘI Japanese firms are increasingly turning to Việt Nam for tech talent as they address a looming IT workforce shortage and push for digital transformation.

With over 400 Vietnamese firms collaborating with Japanese companies, the partnership spans key industries like manufacturing, automotive, finance, and cybersecurity. According to the Việt Nam Software and IT Services Association (VINASA), Vietnamese IT companies in Japan are moving beyond traditional outsourcing to take on higher-value projects such as research, design, and advanced technologies like AI and blockchain.

A survey of 20 Vietnamese IT firms in Japan revealed that their combined revenue doubled from US$672 million to $1.345 billion between 2020 and 2024, growing at an annual rate of 22-28 per cent. This surge in revenue has outpaced workforce growth, indicating a significant rise in labor productivity. Vietnamese firms are not just offering services but are also developing proprietary solutions, helping Japanese companies modernise their systems and adopt new technologies.

One prominent area of collaboration is the development of AI-driven solutions. Vietnamese companies like Fujinet and NTT e-MOI have successfully integrated AI into their operations. Fujinet, for instance, spent three years developing an AI-based OCR (optical character recognition) system, which led to a revenue boom in 2024. Similarly, NTT e-MOI has leveraged low-code/no-code platforms combined with AI to accelerate project timelines, aiming for a 150 per cent annual growth rate.

The collaboration between the two countries is expanding beyond the private sector. The Japanese government is increasingly turning to Việt Nam’s skilled workforce to address gaps in its IT sector. Japan's Ministry of Economy, Trade, and Industry (METI) projects a shortage of 789,000 IT workers by 2030. This gap, coupled with Vietnam's young, tech-savvy workforce, positions the country as an ideal partner in Japan's digital transformation.

At the Japan ICT Day 2024, held in Hà Nội, industry leaders discussed how Vietnamese firms are key players in Japan’s digital transformation, particularly in modernising legacy systems and promoting smart green manufacturing. However, challenges such as language barriers, workforce stability, and global competitiveness must be addressed for further growth.

Việt Nam’s potential as a tech partner for Japan is immense, with the Japanese IT services sector valued at over $200 billion. As Japanese firms seek new talent to meet their IT demands, Việt Nam is well-positioned to fill this gap, offering high-quality, cost-effective solutions that drive digital transformation in both countries. VNS