Why Outsource to Vietnam?

This blog has been updated with more relevant research and information. 

Vietnam’s strong economy and rising technology boom are showing promise for the outsourcing industry in comparison to its western neighbor India. Industry insiders speculate Vietnam could even become the Silicon Valley of the Eastern hemisphere.

Many companies looking to outsource their business look to countries like India. While the industry may be larger and more established in those, Vietnam has several advantages to consider.

Strong Rising Economy

Vietnam’s economy is one the fastest growing markets in the world. The World Bank predicts the economy to grow at least 7 percent per year for the next 20 years.

Young and Top Talent

A recent article in Reuters magazine discussed how Vietnam is becoming the tech hub for top talent, citing it as the place to go when considering an offshore provider. “Vietnam has the highest-performing computer science students I’ve ever encountered,” said Neil Fraser, a software engineer at Google, who visited local schools. Vietnam also has an excellent university system that graduate top talent companies can pull from.


We like to say we’re a “big fish in a small pond.” But what does this mean, exactly? Since there are not hundreds of offshore firms in Vietnam like there are in India, the race for top talent is not as competitive as an Indian offshore business. As a result, attracting and retaining top talent is easier for companies based there. In India, competition between companies is strong, and employees frequently jump from company to company looking for the next highest salary or title.

Dedicated Team Culture

Because the market in Vietnam is just starting to show successful growth you will find smaller offices and tight-knit team environments in Vietnam. In India you may find an office with thousands of employees, making it harder for your on-shore team to establish a dedicated relationship with someone.

Retention Rates

Employers in Vietnam have a great reputation of paying well above the industry average and a strong reputation of building long standing employees that stay for around for years. As a result, you get people on your project that are there for the long haul. Less turnover equals more productivity and greater cost savings. We often hear from companies replacing vendors in India that the constant turnover meant they were always training and retraining, causing downtime on their project work and frustration from on-shore team members.

With a strong educated population, rising economy, and booming industry research continues to show that Vietnam is the place to offshore your business.

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