Japan and Vietnam set up software venture

Representatives from Vietnamese and Japanese software companies have agreed to form a joint-venture company with the aim of...

Representatives from Vietnamese and Japanese software companies have agreed to form a joint-venture company with the aim of outsourcing some software development to Vietnam.

Vietnamese programmers will develop software which will be sold by the Japanese software partners to Japanese end users. Six Vietnamese and seven Japanese companies will be involved, according to a report from the Vietnamese government.

The company will be known as Vietnam-Japan Software Gate (Vijasgate) and is funded with $1.5m in investment capital. The joint-venture company will shortly apply for a business licence and will begin operation in January.

The first phase of the project will consist of sending Japanese-speaking Vietnamese software engineers for training with Japanese software companies.

The Vietnamese companies involved are the Corporation for Financing and Promoting Technology, CMC Group, Hai Hoa, Dan Phong, Niem Tin and Elcom. Japanese companies NEC, Hitachi and TIS have existing software development deals with FPT, which they will expand next year.

The company will be based in Hanoi with a branch office in Tokyo.

Vietnam is keen to build up its software industry to exploit a large pool of computer-literate workers, and has had some success in the US largely through expatriate Vietnamese organisations.

The agreement follows a visit to Japan in September made by Vietnam Software Association (Vinasa) whose members include the six companies involved in Vijasgate.

David Legard writes for IDG News Service

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