Top 5 Reasons Why You Should Outsource To Vietnam

Outsourcing is one of the best methods for small to large businesses. They can both own top talent from other countries in the world while reducing operating costs to increase their profits. Besides, outsourcing also gives companies wider access to cheaper and more diversified employees.

Although India is known as the most popular outsourcing location, the Indian market is reaching saturation point, which leads foreign companies to look for other markets where have better conditions. And one of them is Vietnam. According to A.T Kearney report 2019, Vietnam was ranked Top 5 in top outsourcing locations.


Therefore, today, Outsourcing Vietnam will introduce you to some of the great reasons why you should outsource to Vietnam. Check out now.

1. What Is Outsourcing?

What is outsourcing? Outsourcing is a business practice of hiring a party from the outside company to perform services and create products that were traditionally performed in-house by the company’s own employees. Outsourcing is also known as a cost-cutting measure. As a result, it can affect a wide range of jobs, from customer support to manufacturing to the back office.

2. Top 5 Reasons Why You Should Outsource To Vietnam

1. Price


Outsourcing Vietnam is being recognized as a maker of high-quality and low-cost software in Asia. According to CIO Magazine, they suggest that outsource to Vietnam is about 90% cheaper than developing software in the United States of America. Compared to India, developing software in Vietnam costs between one-third and one-seventh times cheaper.

Also, according to Innotech, software outsourcing Vietnam costs are 50% lower than competitors from India and China. Anderson Vietnam also estimates that outsourcing per person in Vietnam is only $20,000 / person a year compared with $40,000 / person in India.

These figures are convincing enough for businesses that want to invest in outsourcing in the Vietnamese market.

And, as Indian companies enter the maturing cycle, the cost difference between India and Vietnam will increase even further. Outsourcing costs in India are likely to increase in the coming years. And that’s one of the reasons why outsourcing Vietnam can be a great choice for your company.

2. Population


The main advantage of outsourcing to Vietnam is its young population.

You can see that in the chart above. Around 65% of the population in Vietnam is under 40 and around 31% are between the age of 20 and 39.

And, this means about half of the population is suitable for joining the workforce. So the sheer number of people looking for a good job is pretty high. Besides, Vietnam also has a literacy rate of 97%, meaning that most of the work-ready population has education as well. Furthermore, 80% of graduates from Vietnamese colleges and universities have science degrees making Vietnam an especially good destination for IT outsourcing.

The Vietnamese workforce is also more stable than other outsourcing destinations. Vietnamese businesses have a 5% lower turnover rate (churn) for IT-related positions. This compares very favorably to other outsourcing countries like India, where the churn rate is more than 10% and in some cases more than 10%.

With all this in mind, it makes Vietnam become an exceptional country in outsourcing projects, not only just for IT, high-tech but also for HR, designers, marketers, etc.

3. Socio-economic stability

Political stability

A few years ago, Egypt was considered to be an excellent location for outsourcing. But then the unstable political environment in the country smashed the opportunities for the local workforce as well as for other foreign companies. There are quite a few countries in the world today that are facing conflicts and disputes, but fortunately, Vietnam is outside these uncertainties.

In fact, Vietnam is a politically stable country for over 30 years with the same party in power.

Economic stability

One more thing, Vietnam’s GDP growth is estimated at 1.8% in the first half of 2020, expected to reach 2.8% for the whole year. The initial impact of the Covid-19 epidemic is not as serious as in many other countries, thanks to proactive countermeasures to deal with the pandemic. If the COVID-19 epidemic is controlled in Vietnam as well as in the world, the Vietnamese economy will recover by 2021.

Ethnic/Religious stability

Because 95% of Vietnam’s population is ethnically Vietnamese and more than 80% of Vietnam’s population don’t identify themselves with any particular religion. Therefore, Vietnam is largely free from ethnic and religious conflicts.

4. Facility with English


From the standpoint of understanding English, one would not expect Vietnam to have good results. However, that would be a misconception. Vietnam really does very well from an English proficiency standpoint.

According to English Proficiency Index 2018, Vietnam is ranked 13th among 24 economies in Asia.

English is the second most popular language in the country and the majority of Vietnam’s university graduates have proficiency in English. This removes language barriers, making international collaboration easier.

Especially, for the Information Technology industry, most IT workers in Vietnam can communicate in English easily when working on software outsourcing projects.

5. Big Investors

Outsourcing Vietnam is booming in recent years. Vietnam is becoming the destination of many leading companies in the world.


Vietnam ranked #18th in the Tholons Top 100 Outsourcing Destination 2016. Many big players in the technology industry are investing in software outsourcing services in Vietnam. For examples:  Intel, IBM, Fujitsu, Foxcon, Canon, Nortel Networks, Bayer. Outsourcing Vietnam is a promising industry with many years of development and great potential to explore.

When there are many outsourcing companies for a country, especially outsourcing, the infrastructure of that country also develops. This leads to many outsourcing companies in Vietnam being even better. Thanks to some of the big players like Intel, IBM, or Canon have already started outsourcing to Vietnam, they have laid the foundations and helped establish the basic infrastructure.

All of these above are the best reasons why you should outsource to Vietnam. One can say that any company from all over the world can exploit this market.

Outsource to Vietnam?

With a strong economy, with incredible growth; Vietnam is considered a dynamic country with great outsourcing potential.
Companies have begun to take advantage of outsourcing opportunities for Vietnam with low cost and outstanding quality. Vietnam is on the way to writing a new chapter in the history of outsourcing software development. The world will watch this new overseas development revolution taking place in Vietnam. As an emerging software outsourcing destination, Vietnam will be the perfect place for companies looking to advance in technology without spending a lot of money.

As a company looking for outsourcing services, especially software outsourcing services as a part of cost optimizing practices, you could choose Vietnam as a reliable country and trusted partner for expanding your business at the most effective cost.

What Is The Best And Trusted Partner For Outsourcing Services in Vietnam?

No matter you are a start-up, business, or organization if you are looking for Vietnam outsourcing services in the fields of Technology, Digital Marketing, Human Resources and hunting talented candidates, OutsourcingVN is the best destination for you.

Outsourcing Vietnam provides:

If you have any questions about our services, don’t hesitate to contact us. OutsourcingVN is willing to answer all of your questions as soon as possible.

Thank you and best regards.

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