Vietnam is experiencing rapid economic development and is undergoing a boom in technology, this, coupled with a highly educated workforce is making Vietnam an attractive hub for outsourcing when compared to other popular outsourcing destination such as India and the Philippines. Vietnam has now become a front runner for tech compared to its other South East Asian neighbours and has been compared to the Silicon Valley of East Asia.
Many organizations in search of where to outsource their work focus on countries like India. Although they may have a more established and larger industry, there are numerous benefits to consider by outsourcing to Vietnam.
1) Fast Growing Economy
The economy of Vietnam is one of the most rapidly developing markets worldwide. It has been predicted by the World Bank that the economy will grow 7 percent per annum for the next two decades.
2) Young and Top Talent
An article which was recently published in Reuters magazine spoke about how Vietnam was starting to take on the role of the tech hub for the highest talent, referring to it as the no.1 place to consider for offshore outsourcing. Vietnam also boasts a remarkable university system that produces top graduates which organizations can select from.
3) Competition
The Vietnamese economy is in the infancy of its economic growth boom and this means that the number of offshore companies located here is still quite low. This is an indication that when trying to woo a talented worker to your company, the likelihood of achieving this is very high since there aren’t many other competitors to outbid in this situation. In an economy like that of India, this may be more difficult given the high number of offshore companies available.
4) Team Work Ethic
As a result of the recent growth of the Vietnamese market, most of the offices in Vietnam are small scale and have workers who are more inclined to work as a team. If you compare this to offices in a country like India, you will notice that offices in India often have lots of workers who are unable to interact with one another as a result of a large number of employees in the same office.
5) Retention Rates
As a way of developing businesses more effectively, the average pay received by an employee in Vietnam is above the average pay in the industry as a whole. This makes it possible to carry out long term projects using the same staff members. Since employees stay for extended periods, the cost of training new employees is reduced, this leads to more productivity and as a results there is little downtime during projects.
With a booming economy, a highly skilled workforce and a rapidly developing tech industry, Vietnam is now regarded as one of the most favorable outsourcing hubs.