- Japan-Malaysia JV aims to tap the huge IT infrastructure set up opportunities in Vietnam;
- Expects to ramp up overseas business by 25 percent by fiscal 2015.
VIETNAM, MAY 20, 2014 – Hitachi Sunway Information Systems Sdn. Bhd. (“Hitachi Sunway”), a leading IT services and solutions provider in Southeast Asia (SEA), today announced that the company has officially set up its latest business base in Hanoi, Vietnam, Hitachi Systems Vietnam Company Limited, with the aim to further capitalize the country’s surging IT demands in the local market.
Established in April 2013, Hitachi Sunway is a joint venture (JV) between Japan’s Hitachi Systems, Ltd. and Malaysia’s Sunway Technology Sdn Bhd with aim to achieve its targeted revenue of RM137 million (JPY 4billion*) by fiscal 2015. In its first fiscal 2013, the JV reported RM91 million (JPY2.9billion) in revenue.
*Notes: The figures are based on exchange rate of 0.30825 Ringgit to the 1 yen.
Cheah Kok Hoong, Group CEO / Director of Hitachi Sunway shares that the new set up in Vietnam is vital as part of the company’s business expansion efforts to strategic geographical markets in SEA.
“Like other emerging markets in SEA, we see increasing demands for IT solutions and SI services in Vietnam to support the business and national developments — especially as organizations seek to improve their IT infrastructures to support business modernization and higher productivity for better competitiveness.”
“In addition, Vietnam’s economy is growing on a spectacular basis in the country due to its large domestic market and is becoming the go-to destination for outsourced manufacturing. Hitachi Sunway expects this to drive the demands for our IT solutions and services by local enterprises, multinationals and Japanese companies operating in Vietnam.”
SEA Emerging Markets to Continue Accelerating Hitachi Sunway’s Growth
Cheah further shares that Hitachi Sunway is organically growing in a ‘most synergistic manner’ by moving quickly to tap the huge business opportunities on IT infrastructure development that are immediately presented within the SEA emerging markets.
“We identified significant opportunities in these emerging economics to extend our system integration (SI) expertise to support demands for large IT infrastructure developments across industries.”
He adds, “In addition, many multinational companies, especially Japanese-owned groups of companies, are eager to establish their footprints in SEA emerging markets. They are looking for ideal IT partners like Hitachi Sunway that has on-site presence in multiple ASEAN countries to comprehensively support their regional expansion, operations and IT needs.”
The first stage of Hitachi Sunway’s SEA business expansion plan kicked off in 2013 started with Malaysia, Singapore and Thailand. Hitachi Sunway is now in the second stage focusing on three markets including Indonesia, Vietnam and the Philippines, to continue fuelling the regional business growths.
Cheah shares, “Currently, our businesses in most of these countries have already been established with steady demands for IT projects. We expect this to ramp up our overseas business by 25 percent in fiscal 2015 and continue contributing to our combined regional revenues for moving forward.”
In line with the JV’s overall growth fuelled by regional business expansion, Hitachi Sunway has raised its employment headcount by 21% with 200 employees based across Malaysia and other offices in SEA.
