Koeihas announced plans to open a new games studio in Vietnam.
According to a report in Japanese newspaper Nikkei Sangyou Shimbun, reported by Andriasang, the publisher - now part of the newly-merged Tecmo Koei Holdings - wants to take advantage of lower labour costs.
The new studio is set to open in Hanoi in September and will carry the name Koei Tecmo Vietnam.
Around 30 employees will staff the operation at first, expanding to 100 within three years.
However the staff will first be trained at Koei's studios in Japan and China.