IT sector to tap outsourcing market
The software industry could reap a bonanza in 2013 as Japan looks for outsourcers beyond China, according to the Vietnam Software Association (Vinasa).
Pham Tan Cong, Vinasa general secretary, said that Vietnamese software producers have plenty of opportunity to tap the Japanese market.
He said recently many Japanese companies have asked Vinasa to help them forge tight relationships with Vietnamese companies for long-term stable cooperation.
As its economy is recovering, Cong said Japan wants to have more partners to supply software products instead of just China, and Vietnam is an ideal destination.
According to the Japanese Ministry of Economy, Trade and Industry, the country poured about US$30 billion into software outsourcing per year and 75-80 percent of this goes to China.
The outsourcing orders that Japan sends to Vietnam at present are just one thirtieth of the volume that China received.
Last year’s Vietnamese software export earnings to Japan significantly increased. Some companies recorded annual growth of up to 60 percent.
The leading software producer in Vietnam, FPT, reported a 44 percent growth in its Japan business last year.
Other companies exporting software products to Japan have seen minimum growth of 20 percent.
With Vietnamese companies catching up with global trends, it is expected that software exports will increase significantly in the coming year.
This year, Vinasa expects total software export turnover to increase by 30 percent, but more details have not been released.