Vietnam is a very popular destination for outsourcing, including offshoring and nearshoring. There are six key reasons why Vietnam is so popular for outsourcing in the software development and tech industries:
A Large and Growing Workforce
Over 90 million people live in Vietnam and more than half are under 30! As a result, the Vietnamese workforce is young and dynamic: each successive generation can see they will be better off as the country develops. The lure of a position in the emerging middle class provides motivation and drives competition within this pool of talent.
The tertiary education sector is also well developed in Vietnam. There are over 500 universities and junior colleges, and an increasing number of foreign universities are building campuses in the country. In total, over 15,000 students graduate each year, the majority in science disciplines. IT is seen as a particularly attractive career.
The salaries of developers and other specialists in the tech industry in Vietnam are significantly lower than their peers in the United States, Singapore or Australia. Labor costs in Vietnam are also less expensive than China, Thailand, India and other emerging countries. For more detail, we’ve recently published a more detailed review of the salary costs for developers in Vietnam.
Strong Literacy Rates and Levels of English
Vietnam has a high literacy rate (97%) and English is taught widely in schools. English is seen as highly important for career advancement and many will study beyond school to improve their abilities. As a result, Vietnam leads Indonesia, Taiwan, Japan, China and Thailand in levels of English proficiency. The Vietnamese Government is making further efforts to strengthen the levels of English to achieve a better connection with other international economies.
Political, Social and Economic Stability
Vietnam has a very stable political system and there are very low levels of civil or religious unrest, amongst the lowest in South East Asia. Foreign investment levels are strong and the country is becoming more “open for business” each year, the result of focused Government attention over an extended period of time.
Supportive Working Culture
Vietnam has a strong culture of hard work. From the early days of school, parents push for academic results and students study long hours. Maths and science are seen as priorities. Technology is also very important. Despite previous wars in Vietnam, the culture remains open to foreigners and work for international companies is seen as prestigious.
Explore the Possibilities for Your Project
There is a strong case to consider Vietnam, especially if you’re looking for an alternative to onshore development in the United States, Australia, Singapore or a variety of other high-cost countries. Metasource are specialists in international teams and can give you practical advice to get your operations started quickly and effectively.