Japanese IT Businesses Set High Hopes for Investment Environment in Vietnam

In recent years, many foreign businesses, including Japanese information technology (IT) businesses, consider Vietnam as a dynamic and potential market to develop and expand business in Asia.
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Link Station is one IT business in Aomori province, Japan, hoping to make their branch in Vietnam become a center among Southeast Asian markets.

According to Tanaka Taro, a member of the board of directors of Link Station, IT is a very broad field and has a lot of potential for further development during the current booming period of the 4.0 industrial revolution. Link Station attempts to provide service support packages for event organization, typically the Gettii series software. This software helps to simplify and professionalize the preparation of event organizing activities. Currently, about 3,000 event organizers are using services provided by Link Station to organize conferences, seminars, sports clubs, music programs...

For example, when a large-scale music event organizer uses Gettii series, they only need to enter information related to the show, including ticket classification, cost, etc. into the system. The information will then be reflected on the event website and participants can log in, find out information and buy tickets with all types of convenient payment.

In addition to Taiwan (China) market, Link Station identifies Southeast Asia as a potential market, in which Vietnam can be a "regional center" due to its diverse types of entertainment, especially for young people. Understanding the competition with many "big guys” in the IT field, Tanaka Taro believes that there is a large room for the parties to cooperate and jointly exploit the market, notably the combination of experience of Japanese businesses with abundant IT human resources in the "S-shaped strip of land".

According to Jin Masahiko, Head of Department for System Development of Link Station, Vietnamese IT colleagues are sociable and well-coordinated at work. Link Station has opened a branch in Vietnam and cooperates in the form of a Vietnamese staff in Japan responsible for the upstream process and design, while the partner company in Vietnam oversees the production process (coding, programming). With high-quality human resources, Vietnam is proving to be a very potential investment destination for Japanese IT businesses.

Japanese IT Businesses Set High Hopes for Investment Environment in Vietnam
Jin Masahiko, Head of Department of System Development of Link Station, highly evaluated the abilities of Vietnamese employees. (Photo: VNA)

Nguyen Nhat Minh, a member of board of directors of Link Station Vietnam, said that he is currently being greatly facilitated by the Link Station Japan to learn about the product, make a list of potential customers, cultivate knowledge about management, sales, product introduction..., serving future deployment work in Vietnam. With the core working values between the two countries, Japanese people are very diligent, hard-working and disciplined, while Vietnamese people have a very high creative spirit at work, it is expected that new products with competitive value will be developed.

Japanese IT Businesses Set High Hopes for Investment Environment in Vietnam
Nguyen Nhat Minh, the member of Link Station Vietnam's Board of Directors, talked in an interview. (Photo: VNA)

Sharing about the working environment in a Japanese IT company, Tran Thanh Ngoan, an employee in charge of Offshore development at Link Station, said that Japanese colleagues are very enthusiastic at work as well as in daily life.

The company regularly organizes bonding activities and sightseeing to help Vietnamese employees better understand Japanese culture. In addition, the company also covers living expenses and housing, so employees have almost no difficulties even during the Covid-19 pandemic or the devaluation of the yen.

Japanese IT Businesses Set High Hopes for Investment Environment in Vietnam
An exchange of ideas between company leaders and Vietnamese employees. (Photo: VNA)

Ngoan added that Vietnam is one of the potential markets in the region for development in the field of information technology, for its competitiveness in both cost and quality. Currently, Vietnam has many very high-quality information technology training institutions. In the coming time, not only Japan but also many other countries such as the US or Australia are very interested in the Vietnamese market.

According to Skillvalue's assessment results on the current state of human resources and IT resources in Vietnam in 2019, Vietnamese programmers ranked 29th worldwide in programming skill, being the only representative of the Southeast Asia region in the top 30. Currently, it is estimated that Vietnam has about 350,000 IT human resources such as engineers and programmers, and will be able to increase to 1 million laborers in the future. In the context of the rapid development of the global IT industry, IT business services such as outsourcing or back-office outsourcing (BPO) provided across borders become a new trend and the Asia-Pacific region is emerging as an ideal destination for offshore services.

Japanese IT Businesses Set High Hopes for Investment Environment in Vietnam
Vietnamese employees at Link Station company (Aomori, Japan). (Photo: VNA)

The term “offshore” is used largely by Japanese people to define the process of sending work abroad instead of doing the work domestically. Offshore programming is the entrustment of software programming, network systems, smartphone application programming, etc. to foreign companies or foreign subsidiaries.

The main purpose is to ensure IT human resources and reduce costs compared to completing the entire work in Japan. The main destinations for offshore work are countries such as India, China, Vietnam..., which have low personnel costs and abundant labor but still ensure quality and work performance.

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