TOKYO, NNA – Japanese IT products and software importer-dealer Terilogy Co. has entered the Vietnamese market through a joint venture with a subsidiary of communications giant Hanoi Telecom Corp.

Tokyo-based Terilogy said Thursday it had set up the joint venture VNCS Global Solution Technology Joint Stock Co. on Feb. 26. It is capitalized at 12.5 billion dong ($530,000) with Terilogy holding a 20 percent stake. The Vietnamese communication firm’s subsidiary, Vietnam Cyberspace Security Technology Joint Stock Co., and other local partners own the rest.

The JV, Terilogy’s first overseas unit, aims to sell security software to Vietnamese businesses for $1 million in sales in the first business year. Terilogy hopes the venture gives it a foothold in a fast-growing market and will anchor a broader offshore expansion, it said in a statement.

“We’d like to look at the potential of our overseas business,” Terilogy spokesman Kiyokazu Saito told NNA on Thursday.

Japan accounts for most of Terilogy’s sales, which totaled 3.66 billion yen ($33.8 million) in the business year to March 2019, Saito said. The 31-year-old company imports hardware and software and sells computer network-related products.

VNCS, capitalized at $1.8 million, was founded in 2011 as a distributor of computer security-related devices.

The joint venture will try to sell communication technology-related services and hardware to Vietnamese government agencies and financial institutions. The government is on the move to improve network security. The same joint venture will sell as well to Japanese-invested companies in Vietnam.