Vietnam–Japan IT Cooperation: Workforce Development and Future Potential

16Jul2025

B&Company

B&Company is the first Japanese company specializing in market research and investment consulting in Vietnam since 2008.

In this section “Vietnam Briefing”, young researchers of B&Company will provide timely information of Vietnam’s industrial trends, consumer trends, and social movements.

This article is written in English and automatic translation is used for other language versions. Please refer to the English version for accurate content. Although we strive to ensure the accuracy of the original information, please check separately for each information. Interpretations and future prospects are the personal opinions of each researcher.

Vietnam–Japan IT cooperation has evolved significantly over the past two decades, transitioning from simple outsourcing to strategic partnerships in high-tech innovation. With a growing demand for skilled IT personnel in Japan and Vietnam’s abundant young talent pool, this bilateral collaboration is not only solving workforce shortages but also shaping the digital transformation agendas of both countries.

Evolution of Vietnam–Japan IT Cooperation

2000–2010: Laying the Foundation

During this period, Japan provided strong support for Vietnam in technical training, technology transfer, quality standards, and Japanese language instruction for engineers. Key milestones include:

– 2007: The launch of Japan ICT Day, the most important annual business networking event between Vietnamese and Japanese IT companies, co-hosted by VINASA and the Vietnam–Japan IT Cooperation Club (VJC).

– Vietnamese companies such as FPT Software, CMC, and TMA began taking on Japanese outsourcing projects, while Japanese corporations like NTT Data, Fujitsu, and NEC established local subsidiaries in Vietnam.

2011–2020: Rapid Growth and Scaling Up

Vietnam’s software outsourcing market experienced annual growth of 20–25%, making it a preferred partner for Japanese firms. According to Japan’s Information Technology Promotion Agency (IPA), Vietnam ranked second among Japan’s outsourcing destinations by 2012, surpassing India and China in preference.

– Many Vietnamese IT firms grew to 1,000+ employees focused on Japanese clients (e.g., FPT Software, Rikkeisoft, CMC Global).

– High-tech parks emerged in Hanoi, Ho Chi Minh City, and Da Nang to meet growing Japanese demand.

– The collaboration evolved beyond basic coding to include R&D projects in AI and blockchain.

– By 2019, Japan faced a critical IT talent shortage, prompting increased recruitment from Vietnam.

2021–Present: Moving Toward Strategic Partnerships

Recent years mark a shift toward deep-tech collaboration and joint product development:

– Vietnamese engineers now participate across the full project lifecycle, including digital transformation, AI, blockchain, and cloud initiatives.

– Japan introduced policies to attract high-skilled foreign IT talent, including long-term residency and family reunification incentives, benefiting Vietnamese professionals.

– Vietnamese IT firms, such as FPT Japan, expanded their presence in Japan, while Japan continues to invest in Vietnam’s IT infrastructure and talent. As of mid-2024, FPT Japan employs 3,500 Vietnamese professionals across 17 offices in Japan. The Vietnam Association for Digital Transformation in Japan (VADX Japan) was also established during this period.

Key Models of Vietnam- Japan IT Workforce Collaboration

Vietnam–Japan IT workforce collaboration has grown significantly, supported by a variety of models that offer mutual benefits.

Some prominent forms of Vietnam-Japan IT workforce cooperation

Model	Introduction
Recruitment of Vietnamese IT Engineers	Japanese companies actively recruit Vietnamese engineers to work in Japan. Relaxed visa policies now allow skilled engineers to live and work in Japan long-term. Employers such as FPT, Framgia, and GMO regularly hold career fairs and pre-departure training for candidates.
Special Training and Labor Export Programs	Initiatives like FPT’s 10,000 Bridge SE (BrSE) Program train bilingual engineers for the Japanese market, with strong backing from both governments. Japanese giants like NTT Data, NEC, and Hitachi partner with Vietnamese universities to offer scholarships, internships, and direct recruitment.
Offshore Development Centers in Vietnam	The most common cooperation model: Japanese firms hire Vietnamese teams for remote software development. Major companies like Fujitsu, Panasonic, and NEC have opened R&D centers in Vietnam, capitalizing on cost efficiency and scale. Currently, around 80% of Vietnam–Japan IT projects are conducted via offshore models.
Joint Training and Exchange Programs	Programs supported by JICA and Japanese corporations enhance Vietnam’s IT education quality. Examples include Framgia’s internal training centers, and internship partnerships between Vietnamese universities and firms like NEC and Toshiba.
Investment in IT Education Infrastructure	Japan invests in labs, equipment, scholarships, and startup incubators in Vietnam to foster a skilled workforce. In Da Nang, Japanese investors lead in FDI IT projects and support Japanese language centers for engineers.

Source: B&Company

Future Outlook: Toward Sustainable Vietnam-Japan IT Cooperation

As digital transformation and Industry 4.0 accelerate, Vietnam-Japan IT cooperation is expected to deepen and diversify:

– High-tech focus: Collaboration is expanding into AI, big data, IoT, green manufacturing, and smart mobility—leveraging Vietnam’s young tech talent and Japan’s advanced experience.

– Co-creation over outsourcing: The new trend is joint ventures and co-branded product development in fintech, edtech, and enterprise software, rather than traditional outsourcing.

– Multilingual, multicultural talent: Both countries are prioritizing the training of IT engineers with strong foreign language skills and cross-cultural understanding. Vietnam targets 1.2 million digital workers by 2025 and 1.5 million by 2030.

– Government support: Both governments are actively supporting this collaboration through policy alignment, trade events, and legal facilitation. Beyond business, the partnership extends to public services such as e-government, smart cities, and digital healthcare.

B&Company’s Role in Supporting Vietnam-Japan IT Cooperation

As a market research and business strategy consulting firm based in Vietnam, B&Company provides strategic insights and connections to support IT workforce collaboration between Vietnam and Japan through:

B&Company service

Service	Details
Market Research & Talent Mapping	Detailed reports on IT labor trends in Vietnam: availability, skill sets, language proficiency, and regional distribution. Analysis of Japanese enterprises’ IT talent requirements. Evaluation of training capabilities of Vietnamese institutions.
Strategic Partnership & Investment Advisory	Building long-term workforce collaboration strategies (e.g., joint training programs, R&D centers). Location consulting based on labor data and market potential. Legal guidance on hiring, visas, labor permits, and government incentives.
Partner Matching & Exchange Program Support	Connecting Japanese companies with: (1) Top universities and IT training centers in Vietnam, (2) Promising software companies and startups for technical partnership. Organizing online/offline forums, workshops, and engineer exchange programs.

Source: B&Company

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