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Vietnam – The Ideal Place To Offshore

By August 26, 2019 October 25th, 2019 No Comments

Offshore programming definition can be understood simply by entrusting Software programming, Web system, Smartphone application,… to overseas companies. With this form, investors can both ensure human resources issues and reducing costs. 

 

In developing countries, the labor force in these countries is quite rich and abundant. Moreover, their labor costs are very low, typically including Vietnam. Modern technology and skills are some of the factors that make Vietnam is an offshore attractive destination for foreign companies. And their main customers have developed countries that are in shortage of domestic labor or too high labor costs such as the US, Japan, Korea, European countries such as England, France, Germany,…

Although Vietnam cannot provide large-scale IT service centers like India and China, Vietnam increasingly proves its appeal compared to other traditional offshore locations.

Offshore company in Vietnam is currently popular

In Vietnam, there are many cities that are suitable for offshore conditions. And Ho Chi Minh City and Hanoi are two of them.

So what has come out of Vietnam?

Vietnam is a developing country, comparing the value of Vietnamese money with other developed countries, Vietnam is at a low level. The biggest benefit when offshore development in Vietnam is to take advantage of high-tech labor resources but the cost is very low. Compared to China, India is the leading Offshore country so far, the labor cost of Vietnam is also cheaper.

Offshore development began with promotion into India and China to prevent the increase in domestic development and training costs. However, offshore development is gradually shifting from China to Southeast Asian countries, such as Vietnam, which has lower labor costs and a more stable environment. Especially when China and the US are having a war on trade, and this is very beneficial for Vietnam.

 

Business Environment

Vietnam is a country with a young population structure, currently in a period of what can be called the golden population period. The average age of Vietnam’s population is about 28.5 years old. Therefore, the resources of young engineers in Vietnam are incredibly abundant. Compared to a typical aging country population is Japan, Vietnam has a great advantage in the labor force. On the other hand, Vietnam’s IT engineers are mostly creative and intelligent, but they have been stifling progress by the ideology of the Vietnamese people. Therefore, if they know the orientation and create conditions for them to develop themselves, Vietnam IT will be an extremely potential team.

Moreover, when the US arrives in Vietnam, the US invests in things like fiber optic cable, wire, and must have a physical connection when it comes to bandwidth and communication. When they look at new countries like Vietnam, they ignore this kind of traditional infrastructure and focus their capabilities on wireless and mobile technology. Vietnam’s capacity in mobile technology is an advantage for companies that want to outsource to foreign countries.

Offshore company in Vietnam Agiletech Vietnam

Hanoi, the capital of Vietnam, attracts more and more foreign companies for offshoring.

Culture & work ethic

China and especially India, are clearly the “outsource mecca” for the past two decades. These two countries have gone through all the challenges of software outsourcing. Currently, their biggest challenge is retaining employees because they tend to migrate to other countries to find career opportunities.

 

However, this is not a problem for Vietnam. Vietnam is particularly unique because of its low staff turnover rate. Here, you not only have your own family but also have a big family. Typical of Vietnamese culture is the desire to stay in the country, work locally and provide for their families. This is the difference and important advantage of outsourcing the Vietnam environment.

 

Moreover, Vietnamese people have always maintained a precious tradition that is a hard-working spirit. Starting from an agricultural country, diligence and no fear of difficulties have associated with Vietnamese people. Among Asian countries, Vietnam is known for the image of people who work hard and in life. Moreover, the solidarity and mutual support of the Vietnamese people is also a precious virtue, it is the core of the teamwork spirit that is essential for the field of programming.

 

Weakness

Cultural differences, languages, or geographical distances, are common points of software outsourcing countries.

As mentioned above, language is a big challenge. Foreign language is a must-have skill for IT human resources. Because most documents, technical guidelines, software applications are in English. Moreover, Vietnam is now a software outsourcing partner in many countries. Therefore, in the field of Information Technology(IT), they increasingly focused on communication skills in foreign languages.

This is the biggest barrier to Vietnam’s human resources in the Information Technology industry. This is a weakness of students in Information Technology in Vietnam. And it is a significant obstacle for Vietnam to participate in the global boiling technology revolution 4.0.

 

However, these difficulties only relate to speaking skills, do not affect writing and documents. Better writing skills because English is the second official language in Vietnam. Currently, the geographical distance is not a problem too difficult, because vehicles are growing so you can move between countries easily.

Although such weaknesses and difficulties still exist, due to considerable cost reduction, the offshore development trend is still increasing.

Summary

With the characteristics of human resources in Vietnam, offshore programming will have more and more opportunities to grow, promising to become a popular trend in the near future.

Source: https://lnkd.in/fCf4VQN/

My Vu

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