The Vietnam-Japan digital transformation association (VADX JAPAN) made its debut in Tokyo on July 7, according to a report from the Vietnam News Agency.

The association is expected to become a platform connecting Vietnamese businesses operating in the information technology (IT) sector in Japan, while promoting cooperation and sharing advanced technology initiatives and solution between the two countries, the news agency remarked.

It quoted Vietnamese Ambassador to Japan Pham Quang Hieu as emphasizing that since 2005, when the first Vietnamese IT company opened its branch in Japan, there have been by now over 60 companies that have established branches or started new operation in the country.

The establishment of VADX JAPAN marks a significant milestone in the strong growth of Vietnamese IT enterprises in Japan, characterized by developments in reputation, quality, workforce scale, revenue, and future development opportunities, the ambassador stressed, expressing his hope that in the coming time, it will help Vietnamese IT enterprises in Japan advance further with a determination to lead in promoting digital transformation and making practical contributions to the two countries’ cooperation, for the benefits of the two peoples.

VADX JAPAN Chairman Do Van Khac was also quoted by the news agency as affirming that the association is not only a hub connecting businesses involved in digital transformation and innovation, but also aims to become a robust bridge for bringing technological initiatives and solutions from Vietnam to Japan and vice versa. Additionally, IT enterprises from both countries will have ample opportunities to collaborate, contributing significantly to enhancing and improving the quality of IT workforce currently in shortage in Japan.

VADX JAPAN will organize activities to promote innovation, technology transfer, research and development, and application of advanced digital technologies for its members, according to Mr. Khac.

As for human resources development, it aims to build a contingent of tens of thousands of high-quality engineers in Japan and hundreds of thousands of proficient Japanese-speaking engineers in Vietnam, he said, adding that this effort seeks to help alleviate Japan's labor shortage, estimated to reach nearly 800,000 people by 2030 according to data from the Ministry of Economy, Trade, and Industry of Japan.

According to VADX JAPAN's assessment, Japan's demand for software development outsourcing is estimated at over $30 billion annually, while currently Vietnamese IT enterprises only hold a 6-7% market share. Therefore, the potential and long-term opportunities for them in Japan remain big, Mr. Khac remarked.

The association aims to achieve a total revenue of ¥1 trillion (approximately $7 billion) of Vietnamese IT enterprises in Japan by 2033. This goal underscores their ambition to become a reputable and strong organization, making significant contributions to the digital and green transformation of both countries, he added.