Japan by the Numbers
90% Feared Japanese. The Real Gap Was Hou-ren-sou
The bigger gap was a work habit
Nobu Sato6 min read
Contents4
Companies in Japan may be worrying about the wrong thing when they hire foreign engineers. In a survey published on 21 October 2026, 90% of companies said Japanese language was their main concern before taking on Vietnamese engineers. Afterwards, only 26% said Japanese fell short. More of them, 32%, said the gap was in reporting and checking in, a work habit that can be taught.
Who said 84%?
Twenty-two companies, 31 people. The survey was run by PERSOL Excel HR Partners, a staffing firm in the PERSOL group, among companies that use its own service placing Vietnamese engineers. Fieldwork ran from 20 August to 11 September 2026. The release doesn't describe the method.
That base matters. One company moves a percentage by 4.5 points. Everyone answering has already hired Vietnamese engineers and is still a customer. Companies that tried and quit are not in the sample. And the firm asking the questions sells the service. None of that makes the numbers false. It makes them a reading of 22 customers, not of Japanese companies in general. The 84% in the headlines is 84% of these 22.
With that in mind, here is what they said. 84% reported a shortage of technical staff. 71% expected hiring to get harder. 58% wanted to hire regardless of nationality. Asked what changed after taking on Vietnamese engineers, 81% said the staff shortage eased, and 26% said development got faster.
The worry was language. The friction was hou-ren-sou
Before hiring, 90% named Japanese communication as a concern. After hiring, the items that fell short of expectations were led by hou-ren-sou at 32%, with Japanese communication at 26%.
Hou-ren-sou is short for houkoku, renraku, soudan: report, update, consult. It is the Japanese workplace habit of telling your manager where a task stands without being asked, raising problems early, and checking before you guess. It is a different skill from fluency. Passing N1, the top level of the Japanese Language Proficiency Test, says nothing about whether someone has the habit.
Why did the language worry shrink so much? Several reasons could be at work. The staffing firm trains engineers in Japanese before placement; it says it has run a Japanese course with Hanoi University of Science and Technology since 2022. Clients may have lowered their expectations going in. Or clients who struggled with language have left and are not in the sample. The survey can't separate these.
The ranking of hou-ren-sou above language seems less exposed to those biases. Whatever the mix, part of what these companies ran into was how work gets done. A company can fix that with rules and coaching.
What would that look like? Something plain. A short written update at the end of each day in the team channel. A rule that any task blocked for more than a day gets raised, in whatever language comes easiest. A named Japanese colleague who answers "is this OK to ask?" questions. None of it needs N1, and none of it happens unless someone writes it down in week one.
Before hiring, 90% worried about Japanese; after hiring, 26% said Japanese fell short
PERSOL Excel HR Partners survey of 22 client companies (31 respondents) using its Vietnamese engineer service, 20 August to 11 September 2026, %. The release does not say whether multiple answers were allowed
Japanese communicationOther items
- Japanese communication90%
- Hou-ren-soureport, update, consult32%
- Japanese communication26%
- Staff shortage eased81%
- Faster development26%
The biggest worry going in ranked behind a work habit coming out.
Where does the Japanese requirement go on a talent map?
Usually near the bottom of the list of things to protect, unless the person faces customers. Japanese job ads often fix the language bar up front: "JLPT N1 required," "business-level Japanese." Foreign companies setting up in Japan tend to copy that line.
When I build a talent map, every requirement gets the same questions. What is it really screening for? Can we give on it? How long does it take to learn after joining? How long does it stay useful? Asked of "N1 required," the answer is that one line is doing several jobs. Can this person read Japanese specs? Can they run a meeting with a Japanese customer? Can they keep the team informed?
Those take very different times to close. These are my rough judgments, not data. Reading specs: a translation tool and a few months on the job get most people there. Hou-ren-sou inside the team: it is a matter of rules and coaching, and you can see within three months whether it has changed, if someone actually coaches. Negotiating requirements with a Japanese customer in Japanese: the hardest to close, and a year or two may not be enough.
So the order follows the role. If the role doesn't face customers, drop N1 as a hard requirement, replace it with "can read Japanese documents and is willing to learn," and write hou-ren-sou into the first three months of onboarding. If the role faces customers, that level of Japanese is the core of the job. Protect it, and relax industry experience or years on a specific stack instead, because those close faster after joining. The two maps page puts the rule the same way: relax what is quickest to develop, protect what takes longest.
The pool is growing, and so is the competition for it
Japan's labor ministry counted 2,571,037 foreign workers at the end of October 2025. Vietnamese nationals were the largest group at 605,906, or 23.6%. Workers on professional and technical residence statuses numbered 865,588, up 20.4% in a year. The breakdown by status and region is in Foreign workers in Japan: who the 2.57 million are, and where. The ones who can sit across from a Japanese customer are the ones everyone is chasing.
Some teams try to skip Japanese and run in English. It works in some teams. As a default, I wouldn't bet on it; the numbers are in How Good Is English in Japan, Really?
Keeping N1 mandatory narrows the ring you search, stretches the search by months, and leaves the seat empty while you look. Relaxing it widens the ring but has its own price: a Japanese colleague spending a few hours a week aligning specs and fixing reports, plus three months of onboarding. Which costs more depends on the company. The difference is that the first cost hides in a vacancy, while the second is one you choose to pay.
A 22-company survey can't tell you much about Japan. It can tell you that what nine in ten feared beforehand was not what most of them tripped over. That is reason enough to take the Japanese line in your job ad apart before you post it.
Sources (as of November 2026)