The Association’s launch event was attended by Ambassador-Designate of the Socialist Republic of Viet Nam to Japan H.E. Pham Quang Hieu, Minister-Counselor Nguyen Duc Minh, representatives from Viet Nam’s Ministry of Science and Technology, Ministry of Planning and Investment, Ministry of Industry and Trade, and Ministry of Education and Training, Chairman of the Founding Council of the Vietnam Software and IT Services Association (VINASA) and Chairman of FPT Corporation Truong Gia Binh, and esteemed leaders of Vietnamese associations here.
The Vietnam Association of Digital Transformation in Japan (VADX Japan) was established in the context of rapid geopolitical changes worldwide. Japan, a pioneering nation in science, technology, and innovation, is currently facing new challenges, necessitating changes in supply chains, accelerating digital transformation, and economic development to reclaim its leading position, while also addressing issues such as an aging population and labor shortages.
Recognizing Japan’s estimated software development outsourcing demand of over $30 billion per year, while Vietnamese companies have only captured 6-7% of this market share (according to Importance Performance Analysis data), Vietnamese IT companies in Japan decided to establish the Vietnam-Japan Digital Transformation Association (VADX Japan) to enhance IT cooperation between Vietnam and Japan in the near future.
VADX Japan aims to achieve total revenue of Vietnamese IT companies in Japan of 150 billion yen (approximately $1 billion) by 2025 and 1,000 billion yen (approximately $7 billion) by 2033. Additionally, VADX Japan is expected to become a strategic bridge, promoting cooperation and development between the two countries in the digital technology sector, while accelerating and enhancing the efficiency of the digital transformation process to contribute to the sustainable development of the socio-economy.
Specifically, VADX Japan will organize activities to promote innovation, technology transfer, research and development, and the application of advanced digital technologies for its members. By joining forces, members of VADX Japan and Vietnamese IT companies in Japan will have advantages in enhancing international competitiveness, promoting investment, and establishing partnerships with Japanese businesses, governments, and organizations.
Regarding workforce 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 estimated labor shortage of about 789,000 people by 2030 (according to METI – Ministry of Economy, Trade and Industry of Japan). Especially, personnel in new technology fields such as Cloud, Big Data, AI, Blockchain, VR/XR will be prioritized as Japan actively develops advanced technologies to build a “society 5.0.”
Vietnamese IT companies in Japan are developing strongly in both quantity and quality. Currently, Vietnam has over 10 companies with more than 1,000 employees each, including FPT, CMC global, Rikkeisoft, VTI, NTQ, and others. The total number of companies providing IT services to Japanese businesses is nearly 500. From initially performing simple tasks such as programming and testing, Vietnamese companies are now capable of participating in stages from research, design to implementing digital transformation projects and applying new technologies like Cloud, Big Data, AI, Blockchain, and VR/XR.
About CMC Japan
Inheriting the technological capabilities and market success from the domestic sector, CMC Japan – the Japan Business Unit of CMC Corporation – has achieved impressive breakthroughs and is a source of pride for Vietnam on the international technology map. Over the past 7 years of formation and development, CMC Japan has become one of the largest Vietnamese IT companies in Japan, with nearly 1,000 high-quality personnel serving the Japanese market.
With over 20 core technology platforms from the CMC Applied Technology Institute (CMC ATI), CMC Japan has been meeting the collaboration needs of thousands of partners and major clients, including top 500 global companies like Honda and SB Technology, supporting digital transformation through strategic consulting services and solving various problems with different technologies such as Cloud Computing, Artificial Intelligence, Data Analytics, IoT, and RPA. Through the Vietnam Association of Digital Transformation in Japan, CMC Japan is committed to continuous innovation, technology transfer, research and development, and the application of advanced digital technologies for association members, contributing to the development of VADX Japan.
In the near future, CMC Japan will become a member of Keidaren (Japan Business Federation), working together with Keidanren to promote the development of the Vietnamese IT business community in Japan.
