Vietnam is becoming a primary destination of international business for IT service. So why they choose this country as their top-of-mind haven? Here are the reasons to consider IT service companies in Vietnam and add to your list:
Low-cost labor force
Vietnam has a growing number of IT professionals however most of them are getting the payment lower than their peers in the region. Highly-skilled engineers in Vietnam earn around $10,000 per year which is $5000 lower than the average cost in Malaysia. And even with the same skills, they can earn nearly $30,000 in their neighbor Thailand.
Competitive labor pricing has always been an attractive reason for global entrepreneurs to come to Vietnam. According to the survey of stackoverflow, Vietnam only ranks 7th bottom-up in median salaries for developer range.
Top 5 software service provider
According to a research of AT Kearney’s 2019 Global Services Location Index (GSLI 2019), Vietnam is among the top 5 IT service provider. Based on 3 main factors which are financial attractiveness, people skills and availability, and business environment, Vietnam has surpassed Brazil to reach level 5. The research also shows that big companies in the world continue to select Vietnam as an attractive location to invest in. In fact, Japanese companies use services in Vietnam for ITO and BPO.
Vietnam has a growing highly skilled workforce and dedicated to improving English proficiency to compete for better services.
Political and economic stability
Vietnam has a stable socio-political environment that offers favorable conditions for foreign businesses. Moreover, Vietnam’s GDP has grown by 7.4% on average annually (CEIC) and become the fastest growing country in the APAC region. Therefore, there are enough factors to be confident about a stable environment to ensure the project can work efficiently.
Aspire to become “digital hub”
According to Mr. Nguyen Trung Chinh, Chairman/CEO of CMC Corporation, enterprises play a vital role in turning Vietnam into the region’s Digital Hub. Therefore, CMC has launched COPE2N an ecosystem for enterprises around the world with the purpose of sharing digital resources. This initiative is promised to attract more international businesses to choose Vietnam as their destination.
Vietnam is on its way to becoming leading IT service providers in the region. With a highly-skilled IT workforce and a developing tech ecosystem, Vietnam cannot be a better destination for international customers.