As Japan has experienced a continuous decline in population for the past 15 years, the country launched the "Society 5.0" initiative, focusing on human-centered advancements in big data, artificial intelligence (AI), the Internet of Things (IoT), and robotics.
Despite these efforts, Japan's Ministry of Economy, Trade, and Industry forecasts a shortfall of approximately 789,000 IT professionals by 2030, underscoring a significant gap in the domestic skilled workforce necessary for its digital ambitions.
This presents a substantial opportunity for Vietnamese IT companies.
What Opportunities And Challenges Exist For Vietnamese Enterprises?
Vietnam and Japan are comprehensive strategic partners, and Japan ranks as Vietnam's second-largest partner in digital transformation. This collaboration was prominently featured at the Vietnam IT Day 2024 in Tokyo this past August, highlighting the trend of Japanese businesses increasingly outsourcing a range of IT tasks—from research and design to production and testing—to Vietnam.
This trend is hardly surprising. Over the past decade, numerous Vietnamese IT firms have successfully entered the Japanese market, achieving notable milestones. The proximity of the two countries—just a six-hour flight apart—along with their cultural affinities, further facilitates this growing partnership.
Additionally, Vietnam's population is experiencing growth, in contrast to Japan’s declining demographic. As of 2023, Vietnam is home to nearly 400,000 IT engineers and annually produces over 50,000 technology graduates. These highly skilled professionals, adept in advanced technologies like AI, big data, and cybersecurity, are well-prepared to address the talent shortages in Japan.
Three Challenges To Address
The primary challenge is the language barrier, as the Japanese primarily communicate in their native language and rarely use English. Thus, the initial step in making a positive impression and gaining the trust of Japanese partners is achieving fluency in their language.
Another challenge is the increasingly high service expectations of Japanese partners. Japanese companies desire Vietnamese partners to undertake more complex roles in the software production process, such as consulting, analysis, providing solutions, and designing, moving beyond mere programming and testing.
However, Vietnam currently faces a shortage of IT personnel who possess the necessary expertise and qualifications to meet these expectations. According to a TopDev report, out of over 57,000 students graduating annually, only about 30% fulfill the practical skills and expertise that businesses demand.
How FPT Japan Addresses These Challenges
Bridge The Language Barrier
Founded in 2005, FPT Japan was the first Vietnamese IT company to successfully penetrate the Japanese market. Presently, FPT Japan operates 17 branches across Japan and partners with more than 450 globally renowned customers.
A pivotal strategy was the establishment of a Japanese language training center for engineers. From its inception, FPT Japan recognized the critical role of language skills and has heavily invested in Japanese language training for its staff. The FPT Japan Academy, a dedicated language institute, has trained thousands of Vietnamese individuals to study, work, and live in Japan as bridge software engineers for many years.
Additionally, FPT Japan collaborates with various universities and Japanese language centers to bolster its workforce training. Notably, FPT Software recently unveiled a 125 billion VND initiative to provide Japanese training for ICT students, initially partnering with 15 universities. This funding will support scholarships for ICT students studying Japanese domestically, provide student exchange opportunities in Japan, and facilitate training programs to teach Japanese at universities, among other initiatives.
Thanks to this comprehensive investment, all employees at FPT Japan have achieved a Japanese language proficiency of at least N2, with the highest being N1.
Incorporating Learning Into Corporate Culture
To help employees enhance their professional skills, FPT Japan regularly offers training programs that combine e-learning with in-class sessions. FJP employees also have the opportunity to learn from major global partners like Udacity, Udemy, and Globis.
The company’s internal training initiatives include a diverse array of activities designed for various groups: introductory training for new hires, advanced training for technology officers, as well as leadership development for upcoming executives, self-development and language training.
Prioritizing Employee Welfare
Sustainable business growth at FPT Japan hinges on enhancing the mental, physical, and social well-being of its employees, particularly important in a multinational, multi-ethnic organization.
In early 2023, FPT Japan rolled out the "Employee Experience Journey" (FJP.EX), a phased initiative aimed at fostering internal cohesion. Notably, the company introduced an Onboarding Framework to help new employees, especially those newly relocated to Japan, adapt and enhance their integration into an unfamiliar work setting.
Furthermore, FPT Japan offers significant advantages over local companies in terms of competitive salaries, supportive policies, and comprehensive training for employees and their families. Prominent policies include "Long-term Service Awards," routine health check-ups for employees' relatives, a 24/7 online health consultation service, and financial support for relocation, housing, education, and stabilizing family life.
These benefits contribute to FPT Japan's ability to attract a diverse workforce. The company employs 3,800 staff from 28 different countries and actively promotes participation in a variety of cultural exchange activities and local culture education programs for employees and their families, which helps strengthen team cohesion and mutual understanding.
These dedicated efforts have led to FPT Japan being recognized by the Great Place to Work Institute as one of the "Best Workplaces in Asia," "Top 100 Best Workplaces in Japan," and "Top 5 Best Workplaces for Women in Japan in 2022.