The Development of ICT-Based Service Industries in Vietnam and Japanese Firms’ Offshoring

Part of the New Frontiers in Regional Science: Asian Perspectives book series (NFRSASIPER, volume 17)


The growth of the hardware sector of Vietnam’s ICT industry, through the establishment of multinational firm bases oriented toward a global market, has been remarkable. The software sector has also rapidly developed since the early part of this century and has been getting attention as a global ICT services offshore destination. Vietnam has attracted global multinational ICT firms. At the same time, the country has cultured the mushrooming of software firms centered on local firms. This ICT industrial growth has given birth to globally competitive local firms. Entering this century, Vietnam has attracted attention of Japanese firms as an offshore development destination. In recent years, Japanese small- and medium-scale as well as large-scale ICT firms have become interested in Vietnam as a China + 1 development destination, and Vietnam has also been earnest in acquiring a share in Japan’s offshore market. In particular, after the global financial crisis, through its competitiveness against Chinese and Indian rival firms based on its relatively low wages, Vietnam, with its Japanese-fluent and high-quality engineers, has started to explore the Japanese market. Vietnam is also becoming important in the ICT-based service offshoring of Japanese firms other than ICT firms. The transfer of ICT service activities in sectors such as manufacturing, construction, and consultancy is silently underway. In the offshoring of ICT-based service activities, there is a deepening of the international division of labor across industries between Vietnam and Japan. This structure promotes technological accumulation in Vietnam, the upgrading of which strengthens mutual dependency, and has the possibility of supporting the future development of Vietnam.


Engineering services IT parks Offshoring Software industry 


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Copyright information

© Springer Japan 2017

Authors and Affiliations

  1. 1.School of Asia 21Kokukshikan UniversityTokyoJapan
  2. 2.Japanese FacultyForeign Trade UniversityHanoiVietnam

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