“Innovation” was the main topic of an interview by the Japan External Trade Organization (JETRO) with Mr. Nguyễn Trung Chính, Chairman of the Board/Executive Chairman of CMC Corporation, held on May 20, 2024, in Hanoi.

JETRO is providing foreign businesses with various information related to establishing companies in Japan to promote investment into the country. Mr. Nakajima Takeo, Chief Representative of JETRO Hanoi, conducted the interview with CMC’s Chairman.

Currently, open innovation activities in major Vietnamese enterprises are increasingly strong. To provide information for Japanese businesses to collaborate with Vietnamese companies in digital transformation (DX), JETRO, in cooperation with the Tokyo Institute of Technology, conducted interviews with major Vietnamese enterprises such as CMC, FPT, Momo, Next100, VNG, and Ecopark about the needs for open innovation. The interview content will be compiled into the “Vietnam Open Innovation Collection” to promote partnerships between businesses from both countries.

Sharing the reasons why JETRO chose CMC Corporation for this interview, a JETRO representative stated: “We highly appreciate the technological capabilities and position of CMC  Corporation. It is also the second-largest Information Technology and Telecommunications enterprise in Vietnam. At the same time, we want to promote investment and development cooperation between Vietnam and Japan.”

According to JETRO’s survey results, Japanese companies continue to view Vietnam as one of the second most attractive and potential markets (second only to the USA). The essence of innovation is connection and cooperation to promote development, including the development of businesses on both sides.

CMC – A Pioneer in Innovation

In 2017, CMC Corporation officially opened CMC Japan in Yokohama City (Kanagawa Prefecture, Japan). CMC Japan was entrusted by CMC Corporation to provide high-quality software engineers, offering comprehensive and world-class IT solutions and services to customers in Japan. Mr. Nguyễn Trung Chính shared: “CMC Japan, along with CMC Global, is growing significantly. In the near future, we mark our maturity by becoming a member of Keidaren (Japan Business Federation). Over the past seven years, CMC Japan has successfully achieved all its target plans in the Japanese market, including sales and personnel targets. We currently have major clients among the top 500 largest companies globally, such as Honda.”

Additionally, in 2017, CMC Corporation also officially opened the CMC Innovation Center and announced the CMC Innovation Fund.

Mr. Nakajima Takeo, Chief Representative of JETRO Hanoi, at the interview. (Photo provided by CMC)

 Innovation In Internal Company

CMC is a technology company that was early aware of building an innovation model within the corporation by establishing the CMC Applied Technology Institute (CMC ATI) in 2014. Mr. Nguyễn Trung Chính emphasized: “We recognize the application of open innovation both internally and externally at CMC. It’s about harnessing the strength of many people. In 2019, we established the open infrastructure ecosystem C.OPE2N for businesses. This system is also highly supportive of small and medium-sized enterprises and is highly regarded by state management agencies.”

CMC clearly understands that human knowledge is vast and widespread among many people. Finding new creative applications for development brings great benefits to the company. The entire staff of over 5,000 employees cannot achieve this alone.

According to Mr. Nguyễn Trung Chính, one very important thing is that innovation often comes from new, small companies, which often have greater advantages over large companies. Typically, the larger the company, the more complex the structure, limiting creativity. Therefore, CMC minimizes complex structures and organizations to foster creativity throughout the company.

Technology and People as Key Factors in Startups

In nearly the last ten years, the startup activity of companies in Vietnam has formed. Over the past five years, startups have rapidly matured; management capabilities, capital raising scale, and teams have also improved significantly. The market also has higher demands. However, recently, Vietnamese startups are trending downwards.

The CMC Chairman stated: “Technology and people are two crucial factors determining the success or failure of startup projects. Furthermore, technical management capabilities in creating good products and services.”

Mr. Nguyễn Trung Chính shared the factors for choosing to invest in startups: “We prioritize selecting companies with technology that aligns with the development of the Corporation and is part of CMC’s technology development strategy. We focus on the technical capabilities of the partner company as well as the innovative ideas of the companies. Next is the leadership team’s passion, good guidance, and mastery of technology waves, which we are also interested in.”

Mr. Nakajima Takeo, Chief Representative of JETRO Hanoi (left), and Mr. Nguyễn Trung Chính, Chairman of the Board/Executive Chairman of CMC Technology Corporation, hope to strengthen and tighten bilateral relations. (Photo provided by CMC)

CMC Expands in the Japanese Market

CMC  Corporation has plans to expand in the Japanese market and increase investment in expanding CMC Japan’s offices and headquarters in five major Japanese provinces. According to the plan, CMC will cooperate with Japanese partner customers for development.

The CMC Chairman shared: “The innovation factor helps CMC quickly address new issues”