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AgileTech Vietnam
AgileTech Vietnam

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Why Startups Should Choose Vietnam To Outsource?

Do you want to talk about countries with dramatic economic growth over the last century? Vietnam is the new software outsourcing “paradise”.

This country has one of the most skilled and educated workforces in the world and it’s in the top five when it comes to purchasing power and importing and exporting.

For newcomers to Vietnam, this country is impressed by the scores of companies with their engineering teams and outsourcing wings housed in the two major cities of Ha Noi and Ho Chi Minh City.

Vietnam’s Response to Covid-19

Vietnam is the first country to develop a fast, efficient, AND affordable test kit in one month that the WHO says should have taken 4 years to develop.

The test kits were so efficient and easy to use, that as of last week, 20 countries and territories in the world are looking to purchase tens of thousands of test kits from Vietnam.

Vietnam has been mandating 14-day quarantine for all foreigners as well as returning Vietnamese from Covid-19 epicenters, on top of restricting travels from these regions.

On the other hands, the Vietnamese government provided 100% of Vietnamese citizens and foreigners under quarantine with shelter, food and medical attention during these 14 days.

Let's take a look at how the Vietnamese government and media have been treating information regarding Covid-19.

  • When there's a new case, the Ministry of Health (MoH) online portal immediately public the case to all major news outlets and the general publics with details.

  • The Ministry of Information sponsored mobile app, called NCOVI - extremely friendly and easy to use.

  • And the most interesting thing - Vietnamese hand-washing song. Especially, the production company behind the song was the Vietnamese Ministry of Health

If you don't know, Vietnam’s Economy Grow Fastest in Southeast Asia Despite COVID-19.

Vietnam is forecast to be one of the fastest-growing economies in Southeast Asia, despite the impact of COVID-19.

The government launched a US$10.8 billion credit support package in March to combat the crisis.

After COVID-19, the economy is expected to rebound at a growth rate of 6.8 percent in 2021 with continued strong growth.

The Promise of Outsourcing to Vietnam

Many tech giants like Samsung, Microsoft and LG choose Vietnam to locate manufacturing company and a growing number of technology startups have secured investment.

What is attraction?

This year, A Gartner report named Vietnam in the top 30 countries for offshore services.

Speaking from our past outsourcing destination - India, you can find modern IT skills in Vietnam equal to and in some cases exceed what India offers.

English skills in Vietnam are also excellent. Schools teach English from 1 - 12 grades, which is the language allows progress in the IT industry.

Moreover, the rise of tech business and the increase in opportunities is driving an entrepreneurial spirit

  • VNG, a gaming, media and communications focused company is rumored to have a unicorn valuation.

  • A local online wallet MoMo raised an unprecedented $28 million from Standard Chartered and Goldman Sachs.
    
    Vietnam's growth

Over the last decade, the percentage of Vietnam’s growth in the BPO industry has been 20-35% consistently.

Data from Vietnam Software and IT Services Association (VINASA) shows that Japan has been the biggest investor in the industry. Why does Japan see Vietnam as a lucrative investment?

The talent pool in Vietnam is continuously growing with more than 100,000 developers and 75,000 content specialists.

The IT field is becoming increasingly attractive. There are more than 40,000 IT graduates a year.

Geographic location

Another advantage for Vietnam is its convenient geographic location. The timeline is flexible to adapt to many time zones in different continents. Even Canada and America choose Vietnam for outsourcing.

While they are sleeping, the work is completed overnight. It is also easy to travel from Vietnam to major city centers.

What is the future?

At the end of the day, it’s important to approach Vietnam with a realist lens.
It may still be early days for Vietnam, but there’s a whole new generation of talent coming through and a strong focus on computer science in the school system.

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