Vietnam - in pole position to be tech outsourcing leader

With new trade deals in place and big investments in education, CIOs and CTOs may want to consider Vietnam for digital development.

IDGConnect_vietnam_city_shutterstock_715990081_1200x800
Shutterstock

In recent years Eastern Europe has gained an enviable position as one of the world's leading outsourced technology services markets. With a young, highly educated population that has a well-deserved reputation for hard work, the governments of the former communist European states have invested in education to ensure the next generation is not just digital natives; they are digital leaders. Global banks, media, technology and professional services firms have flocked to the region, but with the rising cost of living in Eastern Europe, Vietnam is emerging as a region CIOs and CTOs are considering for outsourcing and partnerships. Like Eastern Europe, Vietnam offers a well-educated workforce in a nation that is investing in the skills of its youth.

Vietnam's economy grew in 2020; like a number of Asian nations, Vietnam responded well to the Coronavirus pandemic and hasn't recorded anywhere near the number of deaths of countries like the UK or USA. As a result, Vietnam's economy is expected to grow by 6.5% in 2021. In recent years Vietnam has attracted major manufacturers such as Honda and Toyota in automotive, as well as electronics majors Canon, Samsung, Intel and Nokia. But it is Vietnam's growing software and digital economy that is getting the attention of CIOs and CTOs. Tech giants like Microsoft have moved in, retailers Uniqlo, as well as outsourcing leaders NashTech from the UK and Denmark's Netcompany. Research organisation the Oxford Business Group predicts that the digital economy in Vietnam could reach a value of US$25 billion by 2025, a forecast made before the pandemic. Vietnam's professional response to the virus could well boost that, as large companies look for well-led nations to be central to their business plans.

To continue reading this article register now