Vietnam , 1 of Top IT Outsourcing Countries in Asia

IT Outsourcing

Mobytelab Team

Mobytelab Team

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According to 2020 research from global real estate adviser Cushman & Wakefield, Vietnam topped the global outsourcing location for the first time in 2020 and continued to survive in top 15 the following years up to now. A survey in Vietnam ITO Conference 2020, in which a total of 80 companies operating in the IT business participated, revealed the reasons why Vietnam is considered to be an attractive destination for IT outsourcing are young and highly trainable labour force, competitive cost structure, and a stable business environment.

Let’s take a closer look at those factors and find out why you should choose Vietnam as an outsourcing destination.

5 reasons to outsource your IT projects to Vietnam


1. Costs

Vietnam holds its significant cost savings advantage for many years and it still remains the key benefit which encourages you to bring your business here. Low production costs used to be the reason why Ho Chi Minh City get into the top 50 outsourcing cities in the world.

Vietnam’s labour and production costs are significantly lower than those of many other markets. In Vietnam, labour costs are much less than those in the U.S and Eastern Europe. Costs for outsourcing IT functions are also attractive compared to those in established outsourcing destinations like China or India. Inflation and wage rises in those countries also contribute to the fact that the preference for IT outsourcing has shifted to Vietnam.


2. Labor Force

A strong labour force is among the top reasons that enterprises brought their outsourcing operations to Vietnam. The country is one of the main beneficiaries of the demographic dividend, which the labour force participation rate (population aged 15–64) is over 50%. The labour force also has much higher stability than do those of most other countries that are active in outsourcing, according to the significantly low attrition rate and turnover rate.

The government of Vietnam recognizes the importance of education and training in technology. Therefore, they focus on innovating educational system to produce highly qualified human resources. Now Vietnam’s labour force has a 96% literacy rate and high scientific and technological knowledge. Many Vietnamese people have the aptitude of scientific fields like mathematics or physics. Therefore, they can quickly adapt to technological changes. Moreover, computer science is one of the most sought-after degrees in university. According to statistics, in Vietnam, there is an average of 30000 college graduates in IT per year; and there are about 200,000 people working in this field in 2016. Vietnam’s IT developers are reviewed to be eager, hard-working and industrious. With a young, dynamic, and well-educated workforce, Vietnam has proved to be an awakening market for IT outsourcing.

Common outsourcing destinations in Asia-Pacific are often insecure and unstable due to the internal division or armed conflict. Fortunately, Vietnam isn’t involved in those plagues. The country is free of political and ethnic/religious conflict.

The social and political stability in Vietnam has created a safe, hospitable and potential environment for outsourcing.

4. Business Environment with government support

Since the economy was reformed, Vietnam’s laws and public policies allow a free market and a warm welcoming business environment for foreign investment. The country has seen a significant foreign investment and membership since it became the 150th member of the World Trade Organization in November of 2006. Also since then, Vietnam is also strengthening its protection and enforcement on protecting intellectual property rights by complying with the guidelines established in the WTO Trade-Related Aspects of Intellectual Property (TRIP).

Vietnam’s software exportation is growing healthily and rapidly thanks to the support of its government. The country’s government has constantly put in incentives and policies to consolidate the country as one of the largest outsourcing destination all over the world.

5. Language

The language used to be a great barrier for Vietnamese workers. Knowing that Vietnam government has made continuous efforts and national projects to turn the barrier into the competitive strength. In addition, Vietnamese use the Latin alphabet, which is a big advantage. Therefore, a significant difference has been made as English is now the most popular foreign language in the country, and it is compulsory for Vietnam’s college graduates to achieve a degree of high proficiency in English. Most IT workers in Vietnam are able to communicate in English when completing outsourcing projects.

In the English Proficiency Index for Companies 2014, Vietnam has ranked top 2 among countries with the biggest improvement in English proficiency. Overall, in the 2016 ranking, the country is put in the 31st place out of 72 countries in the world.

Take your chance now!

Vietnam holds the most important factors that make it not just a viable destination for outsourced software development but an excellent choice that can meet any IT outsourcing needs. Mobytelab takes advantage of being an offshore provider located in Vietnam getting ready to satisfy you with professional services at attractive low costs.


Mobytelab focuses on software consultant, product design, UI/UX design, web & mobile application development and ASO.

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