Business Process Outsourcing: Why you should outsource to Vietnam?

The Business Process Outsourcing (BPO) industry is rapidly expanding, with India, China, Malaysia, and the Philippines establishing themselves as major players. In comparison, Vietnam’s BPO sector is relatively new and smaller in terms of size and revenue. Nevertheless, Vietnam possesses significant competitive advantages and growth potential.

Are you considering outsourcing to Vietnam for your business process needs? Find out why Vietnam should be your top BPO destination with us!

Top 5 Reasons Why Businesses should outsource to Vietnam

  • Appealing labor costs (when compared to that of the U.S)

Vietnam is a prime location for businesses seeking affordable outsourcing services without compromising quality, with software development rates up to 40% lower than the competing nations. Compared to industry-standard prices in India and China, the average hourly rate of $25 offers considerable savings

Since 2019, Vietnam has been gaining recognition as a top choice for outsourcing, earning the nickname “The next Silicon Valley in Southeast Asia.” It ranks 5th globally, according to Markets Insider, and 2nd on’s Top 8 list of crucial outsourcing countries in 2022. 

Vietnam is now firmly established as one of the world’s most cost-effective outsourcing destinations, offering up to 90% savings in software development costs compared to the USA and 50% less than India. This makes Vietnam a wise choice for businesses looking to get the most for their money on high-quality software projects.

  • Wide pool of educated, new talent

Thanks to its emphasis on STEM subjects, Vietnam has become a rich source of talent in the IT industry. As a result, there is a plentiful supply of skilled professionals who are fluent in English and possess a global business mindset. 

Vietnam has a sizable and extremely educated populace, which provides a remarkable talent pool to support its booming IT industry. The nation, which has a population of approximately 100 million people, 70% of whom are under 35, and a median age of just 32.5, is taking advantage of its young population to prosper economically, as shown by the low jobless rate. 

With 153 educational institutions and 400,000 IT engineers graduating each year, Vietnam is a global leader in technical education. It is not surprising that Vietnam is still one of the world’s major centers for technological development given its robust talent pool.

Vietnam’s IT sector has received significant investments from Sony and Samsung, resulting in a steady influx of tech jobs and an increase in research and development. Additionally, the growth of BPO companies in Vietnam provides a diverse range of options for healthy competition.

Sony and Samsung, two of the world’s most powerful high-tech powerhouses, have since invested heavily in the IT sector of Vietnam. As evidence of these efforts, technology-related jobs have unwaveringly increased while the R&D sector continues to expand. The tremendous growth of BPO companies in Vietnam help offer a diverse and healthy competition to select from.

  • Fluent English speakers

India has a long history of being regarded as a destination for English-speaking businesses, but it should not be your only choice. Being one of the only few countries in Asia with the history of using the Latin alphabet, this makes it a major advantage of Vietnam for any businessman or investor looking to expand their reach.

English is the most popular language in Vietnam, despite its relatively small representative share of the total population. How? This is because the Vietnamese government has made a concerted effort to create high-tech jobs that require specialized skills. Today, Vietnam ranks seventh among 24 Asian nations in the Asian English Proficiency Index. These initiatives have helped college graduates in this Southeast Asian country to achieve impressive fluency levels in their second languages.

  • Prime location, dynamic business climate

Located artfully at the heart of Southeast Asia, Vietnam plays a crucial role as a bridge connecting ASEAN and China during this period of economic growth.

As a central hub for business, Vietnam provides unmatched access to regional markets within a matter of minutes. With Singapore, Bangkok in Thailand, Kuala Lumpur in Malaysia, and Hong Kong all located within a short plane ride of two hours or less, entrepreneurs in Southeast Asia can take advantage of convenient transportation options that expand global opportunities for development and collaboration.

  • Social-economical-political solidity

With a sound legal system and a robust economy, Vietnam stands out among its geographically proximate neighbors as a beacon of stability. Due to its success, it is situated head and shoulders above nations like India, Thailand, Myanmar, and the Philippines that may experience upheaval as a result of political turbulence or social unrest.

Vietnam is a showcase of strength and resiliency for the rest of the world. It is one of the few countries that not only withstood but thrived during 2020–21 thanks to its strong growth starting in the 1990s and its ability to sustain over three percent GDP gains despite the global COVID crisis. This success story is expected to carry on into 2023 and beyond, with forecasts for additional growth of close to 6–6.5%.

Key Challenges of Outsourcing in Vietnam

  • Absence of unified data protection laws

The lack of data protection laws in Vietnam is an obstacle to foreign investors. They must instead rely on numerous decrees and regulations which may need to provide greater security for intellectual property rights. You may seek company with ISO certificate for better protection of data

To ensure enhanced data protection, it is advisable to consider companies with ISO certification. ISO (International Organization for Standardization) certification signifies that a company has met internationally recognized standards for data security and management. By partnering with ISO-certified companies, you can have greater confidence in their commitment to safeguarding sensitive information

  • Time difference

The 11-hour difference in time between the US and Vietnam allows companies to offer 24/7 customer service. It increases customer satisfaction and efficiency by offering support after hours.

However, in software development outsourcing such as DevOps or agile development, real-time collaboration with the outsourced team is crucial. Thus, the time zone difference between groups can hinder effective communication.


Is Vietnam an excellent destination for outsourcing?

In recent years, Vietnam has become a popular destination for outsourcing. The low cost of labor and living in Vietnam has drawn businesses from around the globe to invest. Vietnam’s advantage in outsourcing is its skilled and educated workforce.

What makes it unique is the dynamic and hardworking personality of its people. Vietnamese workers strive to deliver quality work on time, which makes the country a popular outsourcing destination. Vietnam’s growing economy, coupled with government incentives, is paving the way for it to become a major player in outsourcing.

Which companies outsource to Vietnam?

Outsourcing is becoming more popular, and companies are looking for new ways to reduce costs and provide high-quality service. Vietnam is a popular outsourcing destination due to its skilled workforce, low prices and friendly business climate.

Many global companies have established themselves in Vietnam, but a select few stand out as long-term partners. These include the tech giants IBM, Intel, and manufacturing heavyweights Samsung, LG.

It is not surprising that these businesses have confidence in Vietnam’s skilled labor given the country’s track record of profitable outsourcing endeavors. There will undoubtedly be an increase in the number of businesses following in their footsteps as Vietnam’s economy grows.

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