Vietnam, Japan Bolster Cooperation on Advanced Technology Solutions

The birth of the Vietnam-Japan Digital Transformation Association (VADX JAPAN) marks a strong milestone for Vietnamese information technology businesses in Japan with development in both prestige and quality.
July 09, 2024 | 12:45
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The Vietnam-Japan Digital Transformation Association (VADX JAPAN) made its debut in Japan on July 7, with the association set to become a platform to connect local firms operating in the information technology (IT) sector in Japan, while boosting ties and sharing innovations and advanced technology solutions between the two countries.

Vietnam, Japan Bolster Cooperation on Advanced Technology Solutions
At the event.

Speaking at the ceremony, Vietnamese Ambassador to Japan Pham Quang Hieu emphasized that since 2005 when the first Vietnamese IT enterprise opened a branch in Japan, more than 60 enterprises have opened branches or established new branches in the Far East Asian nation.

The birth of VADX JAPAN marked a milestone for Vietnamese information technology businesses in Japan with development in terms of reputation, quality, human resource scale, revenue and development opportunities in the future.

In the coming time, the association will act as a bridge, further connecting the community of Vietnamese information technology businesses in Japan. The Association is determined to take the lead in promoting digital transformation, practically contributing to the development cooperation of the two countries, for the benefit of the communities and the two peoples.

On behalf of the VADX JAPAN Executive Committee, Chairman Do Van Khac affirmed that the association is not only a place to connect businesses operating in the field of digital transformation and innovation, but is also oriented to become a solid bridge bringing technological innovations and solutions from Vietnam to Japan and vice versa.

Vietnam, Japan Bolster Cooperation on Advanced Technology Solutions
Delegates performed the launching ceremony of the Vietnam-Japan Digital Transformation Association. Photo: VNA

In addition, information technology businesses of the two countries will have many opportunities to cooperate together, making an important contribution to consolidating, and improving the quality of information technology human resources that are lacking in Japan today.

According to the plan, VADX JAPAN will organize activities to promote innovation, technology transfer, research, development, and application of advanced digital technology for members of the association.

Members of VADX JAPAN in particular and Vietnamese information technology businesses in Japan, in general, will have advantages in improving international competitiveness, promoting investment, and establishing cooperation with Japanese businesses, governments and organizations.

For resource development, VADX JAPAN aims to build a team of tens of thousands of high-quality engineers in Japan, and hundreds of thousands of engineers proficient in Japanese in Vietnam.

This contributes to compensating for Japan's shortage of human resources, estimated at nearly 800,000 people by 2030 (according to data from the Japanese Ministry of Economy, Trade and Industry).

In particular, personnel in new technology fields such as Cloud, Big Data, AI, Blockchain, and VR/XR will be given priority in the context that Japan is actively developing advanced technologies to build the model Society 5.0.

Currently, Vietnamese information technology businesses in Japan are growing strongly in both quantity and quality. Among them, there are more than 10 enterprises with over 1,000 employees such as FPT, Rikkeisoft, VTI, NTQ, and CMC. The total number of businesses providing information technology services to Japanese businesses has reached nearly 500 businesses.

From working as hired laborers in simple stages such as programming and testing, Vietnamese information technology businesses are now able to participate in stages from research, and design to implementation of digital transformation projects, applying new technologies such as Cloud, Big Data, AI, Blockchain, and VR/XR.

According to VADX JAPAN's assessment, Japanese demand for software development entrustment is estimated to stand at more than US$30 billion annually, while currently Vietnamese IT businesses only account for 6% to 7% of the market share. Therefore, the potential and opportunities for Vietnamese IT businesses in Japan in the medium and long term are huge.

With close linkages and the spirit of innovation, the association is set to bring the total revenue of Vietnamese IT businesses in Japan to JPY1,000 billion, equal to nearly US$7 billion, by 2033 towards becoming a reputable and strong organization. This will contribute significantly to the digital and green transformation process of the two countries.

It is hoped that a wealth of development opportunities for IT businesses and experts will open up, as well as spurring sustainable development of the IT and communications industry.

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