New Initiative to Boost Vietnam, Japan Cooperation on Digital Transformation

The launching ceremony of the Vietnam - Japan Digital Transformation Association (VADX JAPAN) took place at the Embassy of Vietnam in Japan on July 7.
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The association is expected to become a platform connecting Vietnamese enterprises operating in the information technology (IT) sector in Japan, thereby promoting cooperation and sharing advanced technological initiatives and solutions between the two countries.

Vietnamese Ambassador to Japan Pham Quang Hieu congratulates the debut of the Vietnam-Japan Digital Transformation Association. (Photo: VNA)
Vietnamese Ambassador to Japan Pham Quang Hieu congratulates the debut of the Vietnam-Japan Digital Transformation Association. (Photo: VNA)

According to VNA correspondents in Tokyo, the launching ceremony was attended by Vietnamese Ambassador to Japan Pham Quang Hieu, Special Advisor of the Japan-Vietnam Parliamentary Friendship Alliance Takebe Tsutomu, Deputy Director of the National Innovation Center Vo Xuan Hoai, and representatives from the Vietnam Software and IT Services Association (VINASA), the Japan Information Technology Services Industry Association (JISA), the Japan External Trade Organization (JETRO), and representatives from several Vietnamese and Japanese IT enterprises.

Addressing the ceremony, Ambassador Pham Quang Hieu emphasized that since the first Vietnamese IT enterprise opened a branch in Japan in 2005, there has been over 60 enterprises establishing branches or new offices in Japan. The establishment of VADX JAPAN marks a significant development of Vietnamese IT enterprises in Japan, reflected in their growing reputation, quality, workforce scale, revenue, and future development opportunities.

In the coming time, the association will serve as a bridge, further connecting the Vietnamese IT business community in Japan, aiming to lead in promoting digital transformation and significantly contributing to the Vietnam-Japan cooperative development for the benefit of both countries and peoples.

On behalf of the VADX JAPAN Executive Committee, Chairman Do Van Khac affirmed that the association would not only connect enterprises in the field of digital transformation and innovation but also aim to become a solid bridge for bringing technological initiatives and solutions from Vietnam to Japan and vice versa. Additionally, IT enterprises from both countries will have numerous opportunities for cooperation, significantly contributing to addressing the current IT human resource shortage in Japan.

According to the plan, VADX JAPAN will organize activities to promote innovation, technology transfer, research, development, and application of advanced digital technologies for its members. By consolidating under one focal point, VADX JAPAN members and Vietnamese IT enterprises in Japan will have the advantage of enhancing international competitiveness, promoting investment, and establishing cooperation with the Japanese government, businesses, and organizations.

Delegates perform the launching ceremony of the Vietnam-Japan Digital Transformation Association.
Delegates perform the launching ceremony of the Vietnam-Japan Digital Transformation Association. (Photo: VNA)

In terms of resource development, VADX JAPAN aims to build a team of tens of thousands of high-quality engineers in Japan and hundreds of thousands of Japanese-speaking engineers in Vietnam. This effort will help address Japan's workforce shortage, which is estimated to reach nearly 800,000 by 2030 according to the Japanese Ministry of Economy, Trade, and Industry. Especially, personnel in new technology fields such as Cloud, Big Data, AI, Blockchain, and VR/XR will be prioritized, given Japan's active development of advanced technologies to build the Society 5.0 model.

Currently, Vietnamese IT enterprises in Japan are growing strongly in both quantity and quality. More than ten enterprises have over 1,000 employees, including FPT, Rikkeisoft, VTI, NTQ, and CMC. The total number of enterprises providing IT services to Japanese businesses has reached nearly 500. From simple tasks like programming and testing, Vietnamese IT enterprises can now participate in all stages from research and design to implementing digital transformation projects and applying new technologies such as Cloud, Big Data, AI, Blockchain, and VR/XR.

According to assessments of VADX JAPAN, Japan's software development outsourcing demand is estimated at over US $30 billion per year, while Vietnamese IT enterprises currently hold only 6 to 7% market share. Therefore, the potential and opportunities for Vietnamese IT enterprises in Japan in the medium and long term are enormous.

With close cooperation and an innovative spirit, VADX JAPAN aims to achieve a total revenue of 1,000 billion yen (nearly US $7 billion) for Vietnamese IT enterprises in Japan by 2033, becoming a reputable and strong organization that significantly contributes to the digital and green transformation of both countries, opening up many development opportunities for IT enterprises and experts, and promoting the sustainable development of the IT and communications industry.

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