Software development has come a long way in Vietnam over the last decade. To expand, the country as a whole has been host to one of history’s greatest economic transformations over the last three decades. The future is bright in Vietnam, and it’s especially bright in the IT outsourcing world. That’s why we think software outsourcing in Vietnam is a smart choice, and we’ve put our money where our mouth is.
We should know — we’re one of the country’s major IT outsourcing players, and we’ve seen a lot of positive change in recent years. Choosing Vietnam to be our outsourcing location was a careful, deliberate choice, and we think you’ll see why after you’ve finished reading.
Writing about everything positive that’s happened in Vietnam in recent years could fill an entire book, so we’ll focus on the salient points for people considering Vietnam as an outsourcing destination.
We’ll look at three key reasons to suggest Vietnam is the best place to outsource IT projects. First, the country has a young, educated, and talented workforce that’s heavily invested in tech education. Second, the country has a strong and growing economy that’s weathered the economic storms of the last few decades and came out better for it. Third, the political and social situation in Vietnam is among the most stable in the world, with decades of uninterrupted peace and growth.
Before we get into that, let’s just make sure we’re clear on definitions here, so let’s look on what software outsourcing means.
A brief introduction to software development outsourcing in Vietnam
Software development outsourcing is the process of hiring an external organization to develop and maintain software applications. Outsourcing enables organizations to save time and money by leveraging the expertise of experienced software developers. Additionally, outsourcing provides access to a larger pool of resources and skills, allowing organizations to develop complex projects in a shorter time frame.
You can outsource within your own country, or hire individuals or a team in another country. Hiring abroad is often more cost effective and allows for greater access to more diverse talent as well as robust, pre-built teams. Hiring for a software project can be a tedious and time-consuming affair for many companies, so looking outward for help is often a smart idea.
Choosing just where to even begin is tricky, however. How do you know which country is right? How do you know which company in that country is right? A lot of it is a gamble if you don’t do your research—and doing that research takes time.
That’s why we’re here to tell you why we think Vietnam is the right choice for outsourcing. So let’s get to it.
Vietnam’s young, educated, and talented workforce
Vietnam is a developing country—but it’s one that’s developing well, and rapidly. At the same time, the positive demographic and education trends mean the country’s economic future is set to remain bright for some time. Vietnam has posted the world’s second-highest GDP rate in the world—second only to China. However, it’s in a much better demographic position.
Consider: Some half of Vietnam’s roughly 100 million people are under the age of 30. While fewer than 200,000 students were in higher education in 1987, there are millions today. And of those millions of students at universities, a large percentage of them choose science education—and especially tech like software development.
What this means is that employers like SmartDev have a large and growing pool of talented labor to draw on. We’re happy to actively contribute to the growth of software education, and frequently work with local universities to develop talent in many ways, like implementing internship programs.
We’re of the opinion that being a good steward of our community leads to positive growth for everyone. Students get the benefit of a good education, we get the benefit of talented employees, and our clients get the benefit of their hard work. Everyone wins.
And trends like this are self-reinforcing. Education leads to generational knowledge and ever-improving levels of wealth that are passed on to future generations. Foreign direct investment lit the spark of tech development in Vietnam, but now that spark has turned the country into a main-sequence star fusing its own energy.
Furthermore, English-language skills are rapidly spreading throughout the country, meaning it’s more open to the world than ever before. English language education is highly prized and sought after because it’s crucial in any international environment. Vietnam is well aware that its future lies in trade, so it’s prioritized English-language education nationwide.
Vietnam’s strong and resilient economy
Just a few decades ago, Vietnam was one of the world’s poorest countries. Its rise has been spectacular to witness, especially from within the country. Countries and people who have experienced poverty are hungry for improvement and achievement, and that’s clearly shown by Vietnam’s meteoric economic rise.
While the economic downturn of 2008-09 and the Covid pandemic affected the whole world — including Vietnam, of course — the country has bounced back faster than many others. This is in large part due to the robust demographics mentioned above. A young population is one that both produces and consumes at high rates, leading to economic dynamism and continued growth.
Young people starting families are among those most hungry to develop their talent to boost their income, which is why so many young, intelligent Vietnamese people are turning to software development. It’s a prestigious and socially valuable job, and provides excellent income for the country’s standards.
The country’s cost of living is one of the prime attracting reasons for clients looking to outsource in Vietnam. What would be poverty wages in the UK or US, for example, lead to a very comfortable lifestyle in Vietnam. We’ve got a list of remote developer rates across 25 countries, in case you’re curious to compare. In our opinion, Vietnam offers the best talent for the money anywhere in the world.
Vietnam’s stable political and social system
Have you heard of any major significant events in the news coming from Vietnam? No? That’s because there haven’t been any. The phrase “no news is good news” absolutely applies here. While much of the world was in turmoil during Covid and many other times in recent years, Vietnam has experienced a long-running peace.
In fact, that peace goes back decades. The country is one of the few in the world with zero current international conflicts as well as an unbroken stretch of internal stability. The government’s legitimacy is unquestioned and politics is hardly a concern for most in the country. In short, things run pretty smoothly here.
It’s that stability that has been the backdrop on which the country’s economic miracle has taken place. And it’s for that reason numerous major companies are putting big money into the country.
Samsung has recently increased its investment in Vietnam to $20 billion. Apple has moved manufacturing of its Apple Watch and MacBook to Vietnam as well. These are just a couple of examples, but they’re telling ones. Some of the biggest, brightest companies in the world are investing in the country, and they’ve done their homework. This trend is set to continue, especially considering political instability in other parts of the world.
Software outsourcing in Vietnam with SmartDev
So, above we’ve looked at three major reasons to consider Vietnam for IT outsourcing. The country has a young, talented population, it’s an economic miracle, and it’s one of the most stable countries in the world. It’s attracting investment from major companies and plenty of small and medium ones as well.
That’s why we planted our roots here, and it’s why we’re going to stick around. Our clients get access to all of the above benefits of Vietnam. They also get access to the benefits that come from working with a Swiss-owned, internationally-experienced tech outfit. We think that’s the best of both worlds.
If you’d like to learn more about what it’s like to work with us, reach out to us and we’ll be pleased to discuss just how we can help you. We’re all in this together, and when our clients win, we win.