Pasona to boost staffing operations in Vietnam

Tuesday 06th May, 05:15 AM JST

TOKYO —

Pasona Group Inc will boost staffing operations in the information and technology field in Vietnam, Chief Executive Yasuyuki Nanbu said. The group, which has Pasona Inc, the second largest staffing agency in Japan, under its wing, plans to provide manpower to Japanese companies operating in Vietnam via a local software development company Pasona acquired in March, Nanbu said.

The software company, C.S. Factory Co, currently has about 60 engineers. Nanbu said Pasona will increase the number, eventually to 200 by 2010, to hopefully launch staffing operations in 2009 upon obtaining the Vietnamese government’s permission.

Those engineers, comprising Japanese and Vietnamese, will be initially sent to Japanese IT firms operating in the fast-growing Southeast Asian nation and to other types of businesses there later, he said.

Nanbu, citing wage increases and tougher labor regulations in China, noted that Vietnam is expected to take the role of the world’s factory from China.

Despite a series of realignment moves among Japanese staffing agencies, Nanbu said he does not believe in advantage of scale.

Pasona is not considering any merger and acquisition deals aimed only at expanding its business scale or strengthening in areas of weaknesses, he said.

The biggest company in the Japanese staffing agency industry, Staff Service Holdings Co, was acquired by information magazine publisher Recruit Co at the end of last year.

Tempstaff Co and People Staff Co announced last month that they will integrate their operations under a holding company on Oct 1.

JCN