As businesses grow bigger and more competitive day by day, the search to find an effective solution to cut down costs and expenses has never been more urgent. These days, offshore outsourcing has been chosen as the to-go cost-saving strategy for businesses of all-sizes as it allows them to cut down a huge part of expenditures on wages and management costs but still able to benefit from high-quality talents from all around the world.

Many Asian countries have been taken part as significant players in the outsourcing industry since it has just been made popular by big business owners. Due to rising costs and alarming attrition rates in popular offshoring countries like India & China these past few years, Vietnam has been selected as the new most attractive alternative destination for overseas investors, especially for businesses operating in IT-related industries at the moment. Vietnam’s reputation for outsourcing potentials is not that new – the country already received a “good” rating from American information tech Gartner in 2010 and secured a place in their list of top 30 countries for offshore services.

So what has made Vietnam’s outsourcing industry so special and appealing to foreign investors compared to other countries in the area? Let’s take a look at some reasons why it will pay for your business to invest in Vietnam:


According to statistics, the labor costs in Vietnam are 90% less than those in the U.S., which equals to significant cost savings for your business. The costs of hiring labour in Vietnam remains notable when comparing to other outsourcing destinations. China & India used to dominate in the cost-savings aspect when it comes to offshoring outsourcing; however, the top spot has been taken by Vietnam in these recent years.

Skilled labour force

Each year, Vietnam produces more than 15,000 university graduates, 10,000 college graduates (1), and a vast amount of talents and skilled experts from various vocational institutions across the country. These graduates are more than capable of keeping up with the demand for professionals from foreign organisations, especially in IT-related fields as 80% of them hold science degrees or degrees related to science. Plus, many businesses that are operating in Vietnam have commented on the workforce of Vietnam as being very “keen on learning”. Moreover, the turnover rate in Vietnam is surprising low at less than 5% as compared to other Asian countries where turnover rates ranges from 10% to 20%.


English is taught in Vietnamese educational system since first grade, and most university and college graduates can use English with professional proficiency. Businesses who want to outsource their projects offshore but afraid of language barriers can feel safe when choosing Vietnam as their destination.

Investor-friendly business environment

Vietnamese’s government try their best to make tax policies & laws for encouraged sectors such as health, education, high-tech, infrastructure development, etc. beneficial to foreign investors to attract more FDI. For example, businesses operating in encouraged sectors can be benefited from an exemption of income tax for the first 4 years of operations.

Socio-economic stability

Vietnam’s stability in terms of politics, social, and economics is rated really high compare to other countries in the area such as Thailand or Cambodia. The economy of Vietnam is centrally-planned, which helps secure its stability. The country also has a protection law for intellectual-property rights.

It may still be early days for Vietnam’s offshore outsourcing industry. However, with the country making great changes to improve the quality of their labour force and upgrade their infrastructure, businesses that choose Vietnam as their destination for outsourcing can be rest assure that their investments will definitely pay off in the near future. n.d., Why Vietnam, , accessed 19 May 2015.