Vietnamese software exporters are expecting a future of bountiful opportunities in Japan, the US, Singapore, and Europe.

FPT Software General Director Nguyen Thanh Lam believes software exports are only limited by the vision and ambitions of software companies themselves.

Potential markets

FPT Software’s Japanese exports have grown by an annual 27.5% over the past three years. A 40% rise in 2013 inspired a US$200 million earning target in 2017.

Lam says the mobile and cloud trends in US technology could be especially lucrative for Vietnamese businesses.

The company’s US market turnover increased by 65% annually in the 2010–2012 period and by 70% in 2013. Lam says the company hopes to sustain such high growth, eventually earning US$200 million from the US market by 2016.

FPT Software is Vietnam’s first of its kind to earn US$100 million from exports to 11 countries and territories. It employs 5,000 staff.

At a recent Information Technology Week in Japan, the Vietnam Software Association (VINASA) said ten years of cooperation have made Japan Vietnam’s second largest information and communication & technology (ICT) industry partner.

According to the latest Information Technology Promotion Agency (IPA) report, Vietnam surpassed India in 2012, claiming 23% of Japanese orders. Japanese businesses themselves have identified Vietnam as their favourite partner (31.5% of votes, compared to India’s 20.6% and China’s 16.7%).

ICT cooperation between Vietnamese and Japanese businesses continues to develop, with experts identifying a wealth of latent potential.

The Japanese Ministry of Economics notes the total value of Vietnamese orders is only one thirtieth of China’s.

Market experience

Vietnamese businesses still struggle with adjusting to the specific concerns and priorities of individual markets. Product and service quality must become a focus.

FPT Vice General Director Nguyen The Phuong confirms Japanese and European clients maintain strict quality standards.

ViniCorp CEO Doan Manh Cuong says Vietnamese IT staff change positions too frequently and possess insufficient technical and foreign language knowledge. Reading and writing skills are impressive but English communication remains an issue. Japanese language learning also takes several years.

Some businesses say Japanese clients are more willing to share their experience and technology.

Vietnamese software exporters with Japanese market ambitions should consider the CMMi Level 5 certificate a golden key.

Businesses should pay more attention to human resources training in order to meet Japanese partner demands. The State can help by encouraging the application of internationally recognised standards like FE, ITSS, CMMi and ISO. Businesses should cooperate with each other to undertake projects on larger scales.