In recent years, businesses worldwide have drawn their attention to IT outsourcing to Vietnam. The reasons behind this remarkable transformation are diverse and powerful, stemming from a highly skilled workforce to the relentless pursuit of technological advancements. In this blog, VTI will delve into the multifaceted factors that have propelled Vietnam to the forefront of the global technology landscape. From its well-educated and proficient workforce to its strategic embrace of cutting-edge technologies, Vietnam’s ascent is nothing short of extraordinary.
1. Young Workforce
Boasting nearly 100 million inhabitants, of which an impressive 70% are under the age of 35, Vietnam presents a significant pool of young, dynamic talent. With a median age of 32.8 years, the workforce in Vietnam is not only large but also characterized by its youthfulness. This demographic vigor forms a solid foundation for a thriving IT outsourcing to Vietnam, ensuring a continuous influx of creative ideas, adaptability, and innovation.
Because of its strong educational system, Vietnam has a remarkable supply of talented IT professionals. According to a report by TopDev, the country has more than 300 universities and education centers. Annually, these institutions collectively produce an impressive figure of around 57,000 graduates in IT-related fields.
Meanwhile, with approximately 400,000 IT engineers working in 60,000+ technology firms in the country, Vietnam is undergoing an incredible technological revolution. Bloomberg says that, as this momentum continues to accelerate, the country has the potential to be the next global force in the tech industry.
2. Abundant of IT Talent
With an additional 50,000 IT students graduating each year, the country is poised to see a substantial increase in its pool of skilled professionals. Projections suggest that by 2025, the number of IT engineers in Vietnam will swell to an impressive 450,000. As a result, the country is well-positioned to not only meet the current demands of the global IT industry but also to innovate and lead in IT outsourcing to Vietnam.
According to a 2022 Robert Walters Report: “Vietnam talent are the least uncomfortable in leaving their current roles in Southeast Asia, reflecting their confidence in securing their job opportunities within their sector.” They feel justified in this because Vietnamese engineers and developers are incredibly skilled, despite Vietnam’s current status as a developing country.
Vietnamese professionals possess a remarkable level of tech-savviness that sets them apart in the global workforce. They demonstrate an innate ability to quickly grasp and adapt to new technologies, showing a rare agility that is invaluable in industries that demand rapid adaptation. Here are some of the facts to prove that IT outsourcing to Vietnam is a wise choice for businesses:
- Vietnam ranked #29 worldwide in Developer Skills Charts of Skill Value’s Report 2019.
- Vietnam is among the top 10 in Skill Value’s World Rank of Best Developers Survey after the USA, UK, and France
- Vietnam is one of the two best SEA destinations for software outsourcing in 2022, according to Accelerance.
Read more: Vietnam Jumps 7 Places In The Global AI Readiness Index For 2022
3. Cost-effective
CIO Magazines claim that IT outsourcing to Vietnam presents a compelling cost advantage for businesses seeking software development solutions. Estimations suggest that companies can save up to a staggering 90% compared to the costs incurred in the United States. Even when compared to other established outsourcing giants like China and India, Vietnam maintains a substantial edge. Companies can expect to save approximately 50% when compared to outsourcing to China and around 30% when compared to India
While Singapore is known for its highly developed economy and skilled workforce, it also comes with a higher price tag. In comparison, Vietnam provides a more cost-effective alternative without compromising on expertise. On the other hand, India has long been a popular destination for outsourcing due to its vast pool of IT professionals. However, Vietnam offers a unique combination of competitive pricing and an agile, tech-savvy workforce that can rival the offerings of its larger neighbor.
The average rate of IT outsourcing to Vietnam is significantly lower than the rates in other outsourcing destinations such as India or China. The wages of IT outsourcing to Vietnam range between $25 to $35 per working hour, compared to $25 to $50 for Indian developers. While in China, the cost of a software developer is slightly higher per hour with the range between $35 to $60+.
4. Language Proficiency
While Vietnam currently holds the 66th position out of 112 countries in Education First’s English Proficiency Index, the country is making determined strides toward enhancing its proficiency in the English language. In tandem with this, the Vietnamese government has demonstrated a particular dedication to expanding English language education. This strategic move is geared towards aligning the skill set of the local workforce with the demands of skill-intensive jobs, particularly in the high-tech employment sectors
In stark contrast to many of its Asian counterparts, Vietnam stands out as one of the few countries, alongside the Philippines and Malaysia, to possess a commendable command of the English language. Vietnam’s dedication to education and its proactive approach toward embracing the global language of business and technology have positioned it as a notable exception.
Around half of Vietnam’s population possesses the ability to communicate in English, signifying a substantial linguistic capability within the nation. This proficiency is more pronounced in cities like Hanoi and Ho Chi Minh City, where a higher percentage of the populace demonstrates command over the language. Furthermore, a significant majority of college graduates in Vietnam display a commendable level of proficiency in English.
5. Technologies Advancement
Vietnam has leaped two places in the Global Innovation Index (GII) in 2023, ranking 46th out of 132 countries and territories, according to a GII report released by the World Intellectual Property Organization (WIPO) on September 27. This remarkable leap reflects Vietnam’s steadfast commitment to nurturing an environment conducive to research, development, and the application of cutting-edge technologies.
The technological level of Vietnamese engineers has also been significantly improved. In the beginning, they just did simple steps such as coding, and testing,… now Vietnamese engineers can participate in stages from research, and design to implementation of digital transformation projects, applying new technologies such as Cloud, Big Data, AI, Blockchain, VR/XR. This market’s revenue will contribute significantly to the 14 billion USD revenue of Vietnam’s software and IT services market in 2022.
Mr. Nguyen Thanh Tuyen, Deputy Director of the Department of Information Technology and Communications Industry, Ministry of Information and Communications, emphasized the abundant potential of Vietnam’s information technology sector. Specifically, Vietnam holds the 6th position globally in software outsourcing. The digital economy in Vietnam exhibits clear strengths with a high labor force participation rate (74% as of 2020), a friendly business environment, and geographical advantages.
Vietnamese developers indeed possess outstanding technical expertise and hands-on experience, particularly in managing complex large-scale IT projects that are accessed by millions of people globally. Their proficiency in developing and maintaining such projects has earned them a reputation for reliability and excellence.
Conclusion
With all of the reasons above, it is no exaggeration to say that IT outsourcing to Vietnam is a wise move for businesses. Beyond its advantages, IT outsourcing to Vietnam offers a compelling proposition for both short-term and long-term business goals, cementing its position as a standout destination for those seeking excellence in IT outsourcing and a strategic advantage in today’s competitive market.
Please contact VTI if you have any questions about IT outsourcing to Vietnam. We would be delighted to assist you, as we have years of experience providing IT outsourcing services.
VTI – Innovation Technology Value
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