An increasing number of Japanese companies are investing in the information technology sector in Vietnam and they wish to hire qualified and skilled engineers because it is difficult to find engineers in Japan, said Nobuyuki Matsumoto, head of representative office of the Japan External Trade Organization (Jetro) in HCMC.
Which industries are attracting Japanese corporations to Vietnam?
Japanese firms invested the second most in Vietnam in 2023, trailing only Singapore, according to Vietnamese statistics. Information technology engineers in Japan are currently difficult to find, so there is an increase in the number of Japanese companies investing in this field in Vietnam. Japanese companies hope to hire qualified engineers in Vietnam and this tendency will continue in 2024.
The purchasing rate of Japanese firms from Vietnamese enterprises producing parts and accessories was still low in 2023, at 17.2%, How can Vietnamese enterprises increase sales to Japanese enterprises?
Clearly, the domestic purchasing rate of Japanese businesses in Vietnam was still low compared to the average in ASEAN and some neighboring countries. However, increasing the localization rate cannot be done overnight because it needs long-term efforts. Over the past 10 years, Vietnam's domestic supply rate has gradually increased, which shows the efforts Vietnamese enterprises have been making.
Japanese firms prioritize safety and quality. If Vietnamese enterprises wish to meet high standards, they must increase their skills and technologies, including automation and artificial intelligence. As a result, human resources must be trained to keep up with these developments. In the realm of semiconductors, for example, universities and educational institutions must keep up with technological advances.
Japanese companies report having trouble locating highly qualified and specialized engineers. Foreign companies are vying with one another for the limited pool of highly competent engineers and middle managers. The ability to produce high-value products requires qualified engineers. The markets and products will lose their appeal if superior human resources are not trained. As a result, Japanese companies may search foreign markets in the hopes of locating human resources that can meet their standards of excellence.
Jetro wants to establish contact with Vietnamese training units to spread the word that Japanese businesses require top-notch human resources.
How interested are Japanese companies in Vietnam's semiconductor sector?
Japanese companies investing in Vietnam are paying close attention to the semiconductor industry, as are other international companies. It is difficult for Japanese firms to find information technology engineers in their country. As a result, companies in the information technology sector - including those that produce semiconductor materials - are flocking to Vietnam in search of highly qualified engineers.
In the future, as other nations compete with Japan for human resources, the semiconductor material design and production industries will continue to draw attention, so it is essential to invest in order to have a large pool of highly competent human resources for the future.