IT Viec Joint Stock Company
CEO
Naoto Iijima
interview=Ken Mitsui | Text=Aya Rikitake | Photographs=Kohei Nishiyama
Excite the IT in Vietnam by Great Hiring
When it comes to hiring IT talent in Vietnam, 'itviec' cannot be overlooked. IT Viec Joint Stock Company, which operates the Vietnamese IT engineer job site 'itviec', was founded in Vietnam in 2013 as a local company. However, it became a subsidiary of Mynavi in 2019, and Naoto Iijima from Mynavi was appointed as CEO in 2021. In this interview, we asked Mr. Iijima to share his insights on the current state of Vietnam's IT industry and recruitment market, including his analysis.
The Overwhelming Brand Strength of ‘itviec’ in IT Talent Recruitment is a Major Advantage.
―First, could you please tell us about your company’s business activities?
IT Viec Joint Stock Company (hereinafter referred to as ITviec) operates a job site specifically for IT professionals called ‘itviec’ in Vietnam. Established in 2013, it became a subsidiary of the Japanese human resource service company Mynavi in 2019. While we do have some job postings from customers outside of Vietnam, over 95% of our business transactions are with companies based in Vietnam. The current breakdown of our client companies by nationality is 60% Vietnamese, 10% Japanese, 10% other Asian companies, and the remaining percentage from Western countries and India.
As the project leader responsible for the M&A of ITviec, I joined ITviec as a director seconded from Mynavi for two years after the acquisition. In 2021, I succeeded the founder as CEO. From the time I joined Mynavi in 2005 until 2017, I worked in Japan, where I was born and raised, starting with a job making 200 telemarketing calls a day in the sales department of the job site, and eventually serving as section manager and department manager. In 2016, I was assigned to the Asia Business Preparation Office. Suddenly, my environment changed to a market dealing with overseas operations. Despite having almost no English skills, I have been involved in discovering M&A opportunities, negotiating, executing transactions, and subsequently managing operations in seven Southeast Asian countries, leading to a series of unknowns and surprises up to today.
―Could you tell us about any differences in working styles you noticed when transferring from Mynavi to ITviec?
First of all, I was surprised by the company’s thorough system of avoiding overtime. Additionally, since ITviec’s founder is American and adopted a top-down management style, the company rules were simple and clear. Under these straightforward rules, the focus on action felt more understandable and manageable compared to Japanese companies, where rules are numerous and decision-making tends to be more complex. Another surprising aspect was that many routine tasks did not have specific deadlines.
This was to prioritize the quality of output. Of course, deadlines were set for projects or special events, but unlike in Japan, where deadlines are heavily emphasized, often leading to excessive overtime and workload, ITviec prioritized the quality of output and aimed to improve productivity without imposing undue workload on employees. I found there is much to learn from this approach.
―Did you change any rules after becoming CEO?
For a while after assuming CEO, I followed the founder’s approach. Given that ITviec’s founders were American and Vietnamese, the company had a management style that successfully blended American and Vietnamese practices. I was concerned that abruptly shifting to Japanese-style work methods and rules under a new Japanese CEO might meet resistance from employees. The perception of Japanese-affiliated companies carries both positive and negative connotations. For instance, the typical image includes strict attendance control, numerous meetings and paperwork, and unchanged compensation despite increased workload.
There was also a concern that employees might be compelled to learn Japanese. Having served as a director at ITviec for two years before becoming CEO, I understood these concerns to some extent. Therefore, even now, we do not enforce strict attendance management or overtime. About a year after assuming the CEO role, I gradually introduced necessary systems (such as OKRs) and policies (such as HR systems), focusing on creating an environment where everyone can work towards common goals.
―What exactly are ITviec’s strengths?
ITviec possesses overwhelming brand strength. When you ask IT company executives or HR managers, “Which recruitment site do you use for hiring IT talent?”, almost all of them will mention ITviec. This remarkable brand strength is a testament to the valuable asset that our founders have built for our company.
Contributing to the Development of Vietnam's IT Industry Through a Wide Range of Human Resources Support
―Could you tell us about the trends among recruiting companies and job seekers in Vietnam?
In fact, the demand for hiring IT talent has rapidly decreased since 2023. In 2022, ITviec experienced record-high sales due to the soaring demand for IT talent. However, in 2023, the overall market’s number of job openings has roughly halved, marking a complete shift from a seller’s market to a buyer’s market. Our number of job postings and sales also halved accordingly.
This trend has continued into 2024, with the number of job seekers increasing relative to the number of hiring companies. According to our recent in-house data, a significant 15% of job seekers who have been unable to find a job after three months. Consequently, middle to senior-level personnel are more hesitant to change jobs. Indeed, many companies have reported a recent decrease in turnover rate.
―What are the reasons behind the decrease in demand?
I believe there are three main reasons. Firstly, economic stagnation within Vietnam has had a significant impact. Secondly, there has been a decrease in overseas IT investment demand. Lastly, there has been a slowdown in the inflow of capital to startup companies. The most significant impact comes from the economic stagnation in Vietnam, but the decline in foreign IT demand is equally influential. The decision by American tech giants such as Google, Microsoft, Amazon, and Meta (Facebook) to scale back on R&D and proceed with layoffs symbolizes the current rapid slowdown in the IT recruitment market. In the past, many companies turned to offshoring in Vietnam, India, and other countries to secure IT talent due to limitations posed by these large tech companies.
However, the massive layoffs by these aforementioned companies and reduced IT investments have led to a surplus of skilled IT professionals becoming available. These layoffs and reduced investments have had a profound impact on Vietnamese IT companies that heavily rely on offshore revenues. Additionally, the global slowdown in funding for startup companies has similarly affected Vietnam, causing many startups to struggle to secure funds and consequently leading to closures or downsizing, further impacting demand.
―In such circumstance, we heard that you are starting a recruitment business.
Yes, thanks to the reputation that “If you’re expanding into IT in Vietnam, ITviec is the place for talent,” we’ve seen an increase in opportunities to consult with companies from management to general staff when they’re entering the market. As for general staff, I believe we’re contributing to ITviec’s vision of “Excite the IT in Vietnam by Great Hiring,” but there’s still room for development in attracting high-end talent. Starting a recruitment business will enable us to support job changes for those currently active in the high-end market.
The Common Factor Among the Top Companies in Review Rankings is Their Focus on “Investment in Human Resources.”
―Please tell us about the current situation and challenges for Japanese companies in Vietnam.
From the perspective of the IT industry, Japanese-affiliated companies are often perceived as offering low wages and having detailed and strict rules. Addressing and dispelling this perception is a challenge for Japanese companies. However, it’s important to note that not all Japanese-affiliated companies have poor working environments.
For instance, among the 30 companies listed annually in our “Vietnam Best IT Companies” ranking based on reviews since 2019, 5 companies, or 16% are Japanese-affiliated. Considering that Japanese-affiliated companies constitute about 10% of our client base, this 16% figure is relatively high.
―Is there a common factor among the companies in the ranking?
What they have in common is that management views recruitment as a crucial strategy and actively invests in it throughout the company. For example, Japanese-affiliated companies are often perceived to offer lower salary levels, they may have well-structured wage and HR systems aligned with the market, and their management is guided by a clear vision and mission.
In Vietnam, annual employee trips are a common company event, but companies that go further by investing in their employees through additional measures such as training, office facilities, and business tools are highly regarded. Overall, companies that are proactive in investing in their workforce receive high praise, regardless of their nationality.
―Many job seekers compare company information in job search media. What’s the secret to winning in it?
The approach and structure of job search media differ significantly between Japan and other countries. In Japan, it’s common to appeal to job seekers not just with job details and recruitment criteria, but also with catchy copywriting and creative visuals, often referred to as “job advertisements.” On the other hand, overseas formats, typically labeled as “Job Descriptions,” are much simpler, focusing on providing essential information.
In that sense, to be honest, there might not be as much room for creativity as in Japan. However, from the perspective of job seekers, clarity in job details and recruitment criteria based on this straightforward format is crucial when making application decisions. It is also important to clearly differentiate from other companies by describing the benefits after joining the company, such as compensation and welfare. There’s an impression that demands for salary and benefits are stronger overseas compared to Japan, but similar to Japan, factors like company culture, growth potential, and career development remain crucial in job searches.
At ITviec, we link each company information page to its job listing page, so that job seekers can learn about the company, its employees, and its values. We recommend that all companies include such information.
―Lastly, please share your predictions for the market in the future.
The advent of generative AI has made future predictions more challenging. If AI enhances productivity, there’s a possibility that the demand for IT talent could decrease. For instance, if tools for generating source code increase an engineer’s productivity by 20%, companies billing by person-months might see a corresponding 20% reduction in revenue. This could lead to scenarios where what once required 100 people might now be achievable with 80.
However, historically, the emergence of new technologies has consistently generated new demands, necessitating additional engineering resources to meet those demands. While some argue that humans may no longer need to learn programming, personally, I believe that the need for programming and engineers will persist. To avoid being replaced by AI, it’s crucial to continually contribute meaningful ideas and requests, while leveraging AI’s capabilities. With the rise of generative AI, certain services and jobs may disappear from society. Nevertheless, engineers who create new value in any era remain indispensable, and I hope they will continue to be so.
Currently, the IT recruitment market in Vietnam is stagnant, but the IT industry itself is experiencing promising growth. Vietnam has an abundance of talented individuals with high technical skills. Looking towards the future, Vietnam is poised to play a crucial role in the global IT market. We believe that as the Japanese market, which has not clearly addressed the IT talent shortage issue, turns its attention to the Vietnamese market, it will realize the immense growth opportunities that exist. Together with Vietnam’s exceptional talent, we look forward to welcoming Japanese-affiliated companies that will pioneer the future by creating next-generation value. We at ITviec are ready to assist with recruitment when that time comes!”
IT Viec Joint Stock Company
60 Nguyen Van Thu, Ho Chi Minh City, Ho Chí Minh 700000
https://itviec.com
Operates “itviec”, a job site specializing in IT engineers in Vietnam. Established in Vietnam in 2013, it became a subsidiary of Mynavi in 2019.
Born in Kanagawa Prefecture in March 1983, lived in Saitama Prefecture until high school, and enrolled in Gakushuin University in 2001. Joined Mynavi Corporation (formerly Mainichi Communications, Inc.) in 2005.
After being engaged in mid-career recruitment support for small and medium-sized enterprises in the Tokyo area, then assumed the head of the mid-career recruitment support division dedicated to large enterprises. In 2016, transferred to the Asia Business Preparation Office. Since the end of 2017, relocated to Ho Chi Minh City, Vietnam, and has been serving as the CEO of ITviec since 2021.
