In 1986, during the era of its predecessor Nissho Iwai, Sojitz was the first company from a Western bloc country permitted by the Vietnamese government to set up a representative office in the country. The company has continued to enjoy good relations with Vietnam ever since, becoming the first Japanese company to receive a Friendship Order award from the Vietnamese government in 2006.

Currently, Sojitz has over 20 operating companies in Vietnam, engaged in business activities in fields including digital technology, distribution, retailing, manufacturing and infrastructure.

Utilizing digital technology for tuna farming and raising cattle

The spirit behind Sojitz’s current “Medium-term Management Plan 2026” is expressed by the catchphrase “Digital in All.” Arakawa explained that this means “integrating DX into our management strategy and utilizing data and technology for all businesses and operations.” In line with these words, the company is actively promoting the use of digital technology in all areas of business.

One example is the cultivation of bluefin tuna on Takashima Island in Nagasaki Prefecture. One of the challenges of tuna farming, explains Arakawa, is that “it is difficult to count the number of fish in the cages.” Sojitz solved this problem utilizing digital technology.

Tomomi Arakawa
Director, Senior Managing Executive Officer,
CDO and CIO
Sojitz Corporation

Specifically, Sojitz used digital twin technology to create a virtual model of the fish cages and digitally simulate the movements of the tuna underwater.

The technology allows Sojitz to adjust various conditions such as the number of fish displayed in the model, then create virtual echo imaging of the fish movement, which is recorded and fed to AI for machine learning.

Using the AI technology and actual echo imaging taken of the fish cages, Sojitz is able to accurately estimate the number of fish in each cage.

“At the moment, we are promoting the use of digital technology to reduce the cost of feed, which is the biggest challenge in tuna farming,” said Arakawa. She explained that by using digital technology to optimize the amount of live feed such as saurel and mackerel, which accounts for 60% of total farming cost, the company aims to farm tasty tuna of the largest size possible, as inexpensively as possible.

At the same time, Sojitz is leveraging the technology and expertise it has cultivated through tuna farming to the raising of dairy cattle in an enterprise undertaken in collaboration with Vietnam’s largest dairy producer, Vinamilk. “We’re trying to use the ‘digital twin’ technology to control and optimize the growth of cattle,” said Arakawa.

Initiatives to reduce tuna farming costs

Investing in local IT companies to upgrade digital capabilities

Dai Fukuda
General Manager, Digital Business Collaboration Department
Sojitz Corporation

In 2024, Sojitz invested in Vietnamese IT startup Finviet as part of its push to promote digital utilization and DX in Vietnam. Commenting on the reason for this move, Dai Fukuda of Sojitz recalled, “There was a sense of crisis that digital technology and DX would greatly disrupt the environment for trading companies.”

Up to now, Sojitz “has invested in real physical assets, for manufacturing, storing and transporting products,” said Fukuda. As we enter the digital age, “the value of our physical assets will gradually decline if we do nothing, leading us to a future of merely making and transporting things,” he explained.

To survive in this transformation, it is vitally important for Sojitz to utilize digital technology. It is necessary to digitize the processes of manufacturing, storing and transporting products under an integrated system to deliver optimal products to customers at the optimal time. “To achieve this goal more quickly, we wanted to collaborate with Finviet to boost our digital capabilities,” said Fukuda.

The digital transformation of distribution in Vietnam

As an example of a major DX initiative that Sojitz is now pursuing in Vietnam, Fukuda mentioned the digitalization of distribution. Currently, retail stores, the bulk of which are “mom and pop stores” (family-run retail stores), account for around 70% to 80% of distribution in Vietnam. In the years ahead, the proportion of modern-style retailers such as department stores, supermarkets and convenience stores is expected to grow. However, it is likely that “mom and pop stores” will continue to coexist in Vietnam, rather than becoming almost extinct as in Japan.

Market structure transformation forecast

If “mom and pop stores” are to continue existing, it will be important for them to make use of data. Fukuda pointed out, “Data exists in various locations, but it is in all kinds of different formats, and it cannot be shared securely.” Sojitz plans to continue supporting distribution in Vietnam, for example by providing a platform to enable secure data sharing.