Which City Is The Best For Offshore Outsourcing In Vietnam?

Today, it seems that the world has become a big village. Without much trouble, you can communicate and work with people from all over the world. Some say that’s a good thing. Others condemned it. But whether we like it or not, overseas outsourcing is still here. Should you consider it for your business?

If you are looking for the country to outsource software development, Vietnam is the ideal destination for offshore outsourcing. you can refer the article: Top 5 reasons why you should outsource to Vietnam.

But, which is the best city for offshore outsourcing in Vietnam? Hanoi or Ho Chi Minh city? The answer is…. Let’s find the answer on  below.

What is offshore outsourcing?

You have heard a lot about outsourcing in recent years. This is a controversial topic, some praising it for its multitude of benefits, others condemning it for quitting smoking at home.

In particular, overseas outsourcing is a crime. On the one hand, it gives more value – paying significantly cheaper for the same amount of work. On the other hand, it is harmful to the company’s employees, as they cannot compete with outsourced workers on price.

Who uses offshore outsourcing and what functions are outsourced?

Leasing production functions has become the norm. Whether it is an entire product or (more often) one part, Japan outsourcing China, the US outsourcing South America, etc. We already know that the apparel industry exports most of its production to Asia, choosing to focus on design and marketing.

However, the services that can be provided and distributed online provide the richest platform for offshore outsourcing. The impressive roster of companies that are outsourcing to countries like India, Pakistan, Bangladesh and the Philippines tell their own story. HP, IBM, Intel, Microsoft, Cisco, and Accenture are just a few of the big names performing certain functions overseas.

Which is the best city for offshore outsourcing in Vietnam? Hanoi or Ho Chi Minh city?

These two cities have shaped Vietnam’s digital transformation over the past decades and are now leveraging the high skill levels of their young population to provide companies with opportunities for competitive growth. of all sizes.

A story of two cities

Located in the Red River Delta, northern Vietnam is Hanoi – the capital and political center. Based on more than 1,000 years of rich history to tell its story, Hanoi used to be a citadel, administrative center, capital of French Indochina and capital of the Socialist Republic of Vietnam. It is the second most densely populated and economically developed city, with most of the country’s government departments.

The financial center of the country, Ho Chi Minh City is the largest city there in terms of population and economic development. Its history evokes the development of the city from a fishing village to the capital of the French colony of Cochinchina. And later on, the capital of the independent republic of South Vietnam.

As tech hubs, both cities have a tech-savvy community who are driving the country’s growth as a competitive outsourcing destination overseas. A growing number of overseas-trained IT professionals are returning to Hanoi or Ho Chi Minh City and adopting Western expertise and new ways of thinking back home.

Ho Chi Minh City is truly known for its entrepreneurial mindset and diverse business opportunities. On the other hand, Hanoi offers deeper and more stable technical expertise for long-term investments. Through its embassies and government organizations, the capital city also opens up prospects for foreign exchanges and partnerships, with no city comparable in the country.

Hanoi & Ho Chi Minh City: What to look for in an outsourced project

When locating an outsourced project, you must be fully informed of the position you have chosen.

This requires careful consideration of many aspects, from skill sets and local communities to costs and openness to investment.

Depending on your goals, Hanoi and Ho Chi Minh City have many competitive advantages to offer to support your development.

Education and expertise are available

Hanoi is the largest educational center in Vietnam, with hundreds of scientific research institutes and more than 50 universities and colleges. The first Western-style universities were established in the capital of Vietnam and here you can find the largest technical university in the country – Hanoi University of Science and Technology & National University Vietnam. Ho Chi Minh City is also home to many high-quality education and training institutions.

From Proficient Software Engineer to R&D Specialist or Sales Manager, the existing IT & C talent pool in Hanoi and Ho Chi Minh is very diverse and highly qualified. Tholon’s Top 100 Super Cities report estimates that the total available talent and ability to meet the needs of an outsourced project are comparable in Hanoi (0.8) and Ho Chi Minh (0.9 ).

Related costs

The total cost of setting up an offshore outsourcing project is another aspect to consider, especially if you have limited financial resources to support your operations.

Cost competitiveness in Hanoi is higher than in Ho Chi Minh City. Average living expenses and salaries are also significantly lower in Hanoi. The capital city still has a number of improvements that need to be made to increase the efficiency of business registration and reduce the time required to comply with bureaucratic procedures.

Accessibility

When evaluating the destination for your next offshore project, ease of access and supporting infrastructure are the first things to look for.

Thanks to an integrated system of air, rail, waterways and roads, Hanoi and Ho Chi Minh City are easily accessible.

Each city is served by an international airport and represents a single terminal of many train lines. Expressway and expressway networks are also consistently improving to open up two of Vietnam’s most important business centers. The Tholons Index reports higher levels of competition (1) over the past two years for both cities on the availability of physical and technological platforms / systems to organize outsourced operations.

National authorities are now focusing their efforts to increase Hanoi’s competitiveness by deploying a network of synchronous infrastructure. The focus will be on modernizing all types of infrastructure within the city territory: transportation, electricity supply, commerce, industry, information, healthcare, sports, culture, etc. Ho Chi Minh City is also implementing similar initiatives to improve the city’s infrastructure.

Conclusion

Hope that the above article has given you the most necessary information and helps to choose the best outsourcing place. Having any difficulties when doing outsourcing in Vietnam? Contact us.

Thank you.