“High Quality at Reasonable Costs”: Why Vietnamese Go Global IT Service is Driving Japanese Companies’ Global Expansion

VTI, a Vietnamese IT vendor, has recently launched “Go Global IT Service”, a service that helps Japanese companies expand overseas. The company provides skilled engineers fluent in local languages working closely with Japanese headquarters to support required system adaptations/compatibility. etc. While meeting the high-quality requirements of Japanese companies, VTI is said to be able to provide support services at less than half the price of major Japanese IT vendors for similar offerings.

In an interview with Mr.Tran Xuan Khoi, the CEO of VTI, we discussed the reasons for starting the Go Global IT service, service details, and past successful stories. (Interviewer: Owada Naotaka, Director of the Innovation ICT Lab at Nikkei BP Research Institute)

Insights into Japan’s Global Expansion Efforts

— Q: How do you view the current state of Japanese companies’ global expansion?

A: With a shrinking domestic market due to population decline, more and more Japanese companies are intensifying their efforts to expand overseas. The most popular destinations are the United States, Germany, Vietnam, and India.

According to a survey, exports by Japanese companies to overseas markets in 2024 are expected to increase by 40% compared to the previous year. In the past, most of the companies that expanded overseas were large corporations, but recently, small and medium-sized enterprises are now increasingly stepping into the global market.

— Q: What challenges do Japanese companies face when expanding business abroad?

A: First off all, many information systems used in Japan cannot be directly used overseas due to legal systems and functional differences. 

Additionally, overseas local subsidiaries are usually smaller than the Japanese headquarters, therefore, the system used at the headquarters would be far more expensive compared to actual needs. What is more, hiring consultants or system developers to customize solutions can also add substantial costs. 

In many cases, the headquarters’ systems are outdated and difficult to customize for overseas use. 

Finding skilled IT personnel is another challenge, as domestic shortages for IT professionals, especially the ones who are willing to relocate and work aboard. Even when companies can recruit enough staff, cultural adaptability remains a significant hurdle, whether the personnel can adapt to the local culture or not.

VTI’s Comprehensive Support for Japanese Companies – For both Local & Headquarters

— Q: What kind of support can VTI provide to Japanese companies expanding overseas?

A: Supporting global expansion requires aligning local customization with the strategic goals of the Japanese headquarters. This is because most decisions are made by the parent company, and the overseas system is decided based on that.

With our Japanese subsidiary, VTI Japan, we possess extensive experience and expertise in working with Japanese businesses.  With our extensive know-how, we are able to quickly understand their requirements and effectively execute tailored solutions for overseas systems with our Go global IT Services.

We also offer our own package software developed for Japanese companies. For example, we provide our own production management system and warehouse management system for the manufacturing industry. These tools facilitate real-time data sharing assisting more effective management, empowering better decision-making.

Through our past experience in building systems and developing packaged software, we are now able to provide services that meet the strict quality standards of Japanese companies.

Additionally, VTI also provides thorough support to local subsidiaries. In addition to Japanese, we have many employees who are fluent in English, Vietnamese, Thai, Malaysian, and other languages. This capability ensures seamless localization of systems for overseas operations. 

The packaged software we provide for Japanese companies is developed with local adaptation in mind when used overseas. Usually, packaged software provided by major Japanese IT companies is very difficult to adapt locally, so we believe this is also one of our strengths.

— Q: How much does the cost differ compared to the “Go global” support services provided by Japanese IT companies?

We can provide our Go Global IT service at less than half the price.

Proven Success in supporting Global Expansion

— Q: Please tell us the specific services provided in the “Go Global” IT Service Offering.

A: Our primary focus area is on Southeast and East Asia. Apart from Vietnam, where our headquarters is located, we also have bases in Singapore, Thailand, Malaysia, and Korea.

With geopolitical risks in China prompting a shift toward Southeast Asia, Japanese businesses increasingly seek to strengthen operations in this region. Southeast Asia and East Asia are areas where the needs of Japanese companies and our core expertise match, so we hope to be able to support many Japanese companies in their expansion into these regions.

We’ve also supported businesses in transitioning system maintenance and operations from China to alternative regions. In the future, we would like to provide services in other regions where many Japanese companies have expanded, such as the United States and Germany. So that VTI can accompany Japanese businesses on their “Go global” journey.

We started with manufacturing and retail as our initial prioritized industry sectors, but will eventually cover other industries, and expand more to the healthcare and education sectors. In Japan, we also have customers in various industries, such as transportation, finance, and medicine, so we would like to support those industries in the future.

From a technology perspective, apart from our specialization in production and warehouse management systems, as we mentioned, we offer high-quality IT services, leveraging advanced technologies such as Artificial Intelligence (AI), IoT (Internet of Things), Cloud, etc. We can also provide IT outsourcing if there is a need.

— Q: Can you share examples of your support for Japanese companies with your Go global IT service?

A: Notable cases we have supported in Vietnam include assisting HOYA, Ajinomoto, and Miniso with their operations in Vietnam. 

An example in Singapore and Malaysia, we supported major projects like WILLER’s MaaS (Mobility as a Service), a major bus company. Another case in Singapore includes system development for a leading Japanese construction consulting firm.

Another highlight example is the projects with United Supermarket Holdings (USMH), which is a member of the Aeon Group, with leading businesses such as Maruetsu, Kasumi, and MaxValu Kanto, is developing retail systems, expanding throughout Southeast Asia.

— Q: What are your future plans?

We aim to increase our workforce by 30–40% annually, reaching over 2,000 employees by 2025.

However, growth is not just about numbers. We remain committed to delivering systems and services of the highest quality and functionality. Expanding our service portfolio and the industries we support is also a priority.

>> For more information or to explore our services, please visit: VTI Contact Us.

Source: Nikkei Business Publications (日経BP)