Japan: Vietnam's next outsourcing focus
A new market for Vietnamese software makers presents itself in Japan.
The Japanese market, estimated at US$100 billion a year, is now the new focus of the Viet Nam Software Association (VINASA) since most domestic software makers exporting to Japan garnered upbeat earnings growth of 100% on average over the past years. As a matter of fact, the Corporation for Financing and Promoting Technology (FPT) has posted an amazing 690% increase in its exports to Japan.
Vietnam ranks after China, India, and South Korea in figuring in the Japanese business partnerships, as reported by the Japan Information Technology Services Industry Association (JISA). VINASA has actually predicted that the industry would be able to secure 10% of Japan’s software outsourcing market and turn over $350 million by 2010 at an annual growth rate of anywhere between 80% and 100%. Japan’s preference for Vietnam with its shared cultural similarity, close governmental relationship, and the country’s cheap yet efficient labor pool.
There is however still the danger of failure should the current software engineer shortage remain unresolved. It is this failure to satisfy in both quality and quantity the demand for human resources held as the main reason for Vietnam’s software companies’ inability to compete against Indian rivals in the US.
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