Vietnam is increasingly recognized as a cost-effective and high-quality software development solution in Asia. According to CIO magazine, outsourcing to Vietnam can result in significant cost savings compared to the United States, and it is even more cost-effective compared to India, up to 90%. These compelling cost advantages make Vietnam an attractive destination for offshore software development.
The benefits of outsourcing to Vietnam
- Price
Vietnam offers significantly lower labor costs compared to the U.S. (90% less), China (50% less), and India (30% lower). This allows for more budget allocation towards development. Additionally, Vietnam is ranked 5th on the “Best countries to outsource to in the World in 2019” list, as reported by MarketsInsider.
- Labor force
Vietnam’s government prioritizes education and training, resulting in a 96% literacy rate and a highly educated population. The country’s IT workforce is young and skilled, with a significant number of graduates in science-related fields. Vietnamese IT talent is in high demand globally, with many professionals working for top Silicon Valley companies. Vietnam also boasts lower turnover rates and greater labor stability compared to other outsourcing destinations.
- Socio-economic stability
Unlike many other popular outsourcing destinations in the Asia-Pacific region that face ongoing instability, such as Thailand, Kashmir, and Sri Lanka, Vietnam enjoys a remarkable level of stability. This stability makes Vietnam an attractive choice for outsourcing, as it provides a secure and reliable business environment. Unlike these countries, Vietnam does not pose significant travel risks or face frequent disruptions, ensuring a smooth outsourcing experience for businesses.
- Economic stability
Vietnam boasts a healthy economy that is growing rapidly and stably. In 2023, the GDP growth was estimated at 5.05%, despite global economic headwinds. While missing the 6.5% target due to external factors, Vietnam maintained a positive growth trajectory. Notably, goods and services exports reached a record surplus of 26 billion USD in 2023, marking the 8th consecutive year of trade surplus for Vietnam. Moreover, Vietnam remains an attractive destination for foreign direct investment (FDI). FDI inflows are estimated to have hit a record high in 2023, contributing to economic growth.
- Business environment
Vietnam’s economic transformation began three decades ago with the renovation reforms, transitioning from a centrally-planned system to a free market economy. Today, Vietnam’s policies continue to foster a welcoming environment for foreign investment. This, coupled with the successful management of the Covid-19 pandemic and the EU Free Trade Agreement (FTA) implemented in 2019, has positioned Vietnam as a magnet for international technology giants and manufacturing groups. In 2023 alone, industry leaders like Apple, Canon, Microsoft, Nokia, Intel, LG, and Samsung all had significant operations or investments in Vietnam.
- Language
In contrast to many other Asian languages, Vietnamese adopts the Latin alphabet, similar to English. This commonality facilitates Vietnamese speakers in learning English, resulting in a relatively smooth language transition. English holds the second position as the most popular language in Vietnam, with a significant majority of college graduates possessing a high level of English proficiency. According to the EF English Proficiency Index 2020, Vietnam ranked 13th in Asia and 65th globally for English proficiency. Consequently, around 90% of IT professionals in Vietnam possess intermediate or advanced English communication skills, enabling effective collaboration on outsourcing projects.
Icetea Software as your trusted software partner
Standing out from other Vietnam outsourcing companies, Icetea Software is fully equipped to handle outsourcing projects of any scale from start to finish. We are committed to delivering exceptional results that surpass your expectations, all while adhering to budgetary constraints and meeting project deadlines. Trust us to bring our years of industry knowledge and proficiency to ensure the success of your outsourcing endeavors.
