Technology is taking over the global business landscape. Businesses worldwide are looking at how they can digitize their products or services and leverage the SAAS model to do business. With so many businesses looking to develop technology solutions for their customers, it’s no surprise that there is a global shortage of software developers. The arbitrage economic benefit of accounting for people with similar skills in lower-cost economies like Vietnam is a reasonable thing for businesses to aim for. In this article, let’s explore the qualifications of Vietnamese tech talents and software developers with Twendee.
Development Conditions of Vietnamese Tech Talents And Software Developers
IT development costs
Searching for talented software developers around the world gives you the opportunity to explore countries like Vietnam, where labor costs are 90% cheaper than the US, 50% lower than China, and even 30% lower than India, which means more capital for development.
According to Forbes, Vietnam has surpassed other famous BPO locations, mainly China, to become the next IT hotspot in the Asia-Pacific. Notably, compared to Chinese developers, who charge around 20 to 50 USD per hour, Vietnamese developers offer more affordable hourly rates, ranging from 14 to 40 USD. These numbers are convincing enough to rank Vietnam as a future top candidate for offshore development projects.
In fact, MarketsInsider ranked Vietnam as the fifth-best country to outsource just a few years ago.
Vietnam’s rapidly growing technology industry, fueled by a young, educated workforce and government support, makes the country an attractive destination for software outsourcing.
IT development knowledge
No matter what you need in terms of software development, choosing Vietnamese is a completely viable choice on all fronts.
Vietnam’s software development industry is home to a large pool of talented developers with expertise in multiple programming languages and technologies, providing a diverse range of skills to clients looking for development services. outsourcing software.
Available coding languages include C+,.NET, PHP, Python, JavaScript, SQL, CSS, and.NET/C#, among others. Among mobile developers, Vietnamese software engineers use Java, Swift, and Objective-C as the three most widely used programming languages. Meanwhile, React Native and Flutter have gained significant popularity. AWS achieved the first ranking for cloud platforms, followed by Microsoft Azure, VMware, Firebase, and Google Cloud.
Growth of the ICT industry in Vietnam
Information and communications technology (ICT) is one of the fastest-growing industries in Vietnam. Total IT revenue in Vietnam in 2021 is estimated at about 136 billion USD, corresponding to a growth rate of 8%.
In fact, ICT is growing at three times the national GDP, reaching just 2.58% in 2021. Before COVID-19, the industry was growing rapidly, at 15.2% per year. IT services (excluding trade), software outsourcing, and digital content generated income of about 20 billion USD, 40% of which came from export activities.
There are currently about 39 cloud computing service providers in Vietnam. The country has about 27 cloud computing data centers with more than 270,000 servers, invested by 11 local companies. The cloud market in Vietnam has reached a value of about 133 million USD and is expected to reach a value of at least 500 million USD by 2025.
Vietnam has a huge labor supply, with about 430,000 software developers and about 1,030,000 individuals working in the ICT industry. Vietnam outnumbers Singapore and Malaysia, which have 180,000 and 250,000 developers, respectively. Additionally, Vietnam almost tripled the number of developers in Thailand, which now has about 150,000. It is expected that each year, more than 50,000 technology graduates from more than 149 colleges will join the labor market in Vietnam. Furthermore, each year, there are 412 IT vocational training establishments training about 12,000 experts in the IT industry.
Top 9 reasons to hire Vietnamese tech talents and software developers
Cutting-edge technologies
In terms of technology, Vietnam’s software companies keep up with the rest of the world. Emerging technologies such as blockchain, cloud computing, IoT, machine learning, cloud computing, and all other commonly utilized software development technologies are already being adopted by outsourcing businesses in Vietnam. Furthermore, Vietnamese tech talents and software developers have exceptional technical expertise as well as hands-on experience working on large-scale IT projects involving millions of people throughout the world.
English proficiency of Vietnamese tech talents and software developers
When it comes to software outsourcing, language is a common barrier to success. Whereas this may be a significant barrier for other offshore software firms, it is not a significant issue in Vietnam when it comes to software outsourcing.
On the EF Education First English Proficiency Index, Vietnam is placed 65th overall and 13th in Asia. Regardless of the degree, all college graduates will be proficient in English. This means that software developers who provide outsourcing services are fluent in English and frequently have a higher proficiency level than the national average. Put your communication worries to rest. Vietnam is English-speaking and willing to work on offshore software projects. As a result, language and communication should not be an issue when contacting a Vietnam software outsourcing company. This, along with a number of other factors, certainly positions Vietnam among the top IT outsourcing locations in the world.
Cost-effective and reliable services
Offshore software development in Vietnam is well-known as a cost-effective solution for software outsourcing. Software development outsourcing in Vietnam is roughly 90% less expensive than hiring US workers, according to CIO magazine. When compared to China, the savings would be 50% and 30%, respectively. In addition, the Product Coalition has listed Vietnam as one of the “Top 10 Countries to Outsource Software Development in 2020.” When these two markets approach maturity and costs begin to climb, investing in the Vietnamese software business is a wise financial move. Not only will you save money, but you’ll also receive top-notch software developers.
Special culture and good people
Vietnamese tech talents and software developers are extremely responsible, punctual, and conscientious, with excellent communication skills, ethics, patience, and a desire to learn new things. The teams are incredibly adaptive, quickly picking up the client’s tools and processes, giving frequent, detailed reports, and speaking openly about any potential issues. Clients always receive close-knit, well-suited teams of professionals, with a match of not just technical capabilities but also long-term contacts, thanks to technical teams.
Labor force
The workforce is significantly more stable and has a lower turnover rate than most other outsourcing countries. On average, IT-related turnover rates in Vietnam are less than 5%, while in many other countries, such as India, this rate can be as high as 10% or higher.
Ho Chi Minh City is known for having a “very low attrition rate” and a “strong labor pool,” which are two of the key reasons for the city’s inclusion on the list of the world’s top 50 outsourcing cities. According to the Tholons Services Globalization Index 2020, Vietnam is placed #9 in the world’s Top 50 Digital Nations, up to four places from 2019.
Recovery with Vietnamese tech talents and software developers
The successful treatment of the COVID-19 epidemic has been widely praised. Vietnam’s economy continues to grow, and free commerce is promoted. It is even affected by the current COVID-19 epidemic due to its broad ties to the world economy but has shown remarkable resilience. In 2020, economic growth is expected to climb by 2.9 percent (according to the World Bank). Vietnam is now successfully returning to work or working from home, whereas many other industrialized countries remain prohibited.
In the event that all businesses are forced to reduce their activities due to a quarantine order, Vietnam has the ability to keep operations running smoothly while still meeting customer demand.
Trustful destination
Vietnam’s economy has been steadily growing for three decades, overcoming Asia’s and the world’s financial crises on its road to becoming a middle-income country from a poor society. The economy is based in part on measures aimed at making the corporate environment more efficient. Under the leadership of the Communist Party of Vietnam, Vietnam has political stability and social harmony (CPV). In order to attract foreign investment, Vietnam amended its Investment Law and Enterprise Law in 2020 with the purpose of streamlining the foreign investment admission process and improving the business climate.
Vietnam’s GDP expanded by 5.64 percent in the first half of 2021, compared to 1.82 percent the previous year, according to the country’s General Statistics Office (GSO). The Asian Development Bank (ADB) forecasts GDP growth of 6.7 percent in 2021, rising to 7.0 percent in 2022. Vietnam has proven to be a desirable place for international investment in a range of areas, particularly outsourcing software development, thanks to sustained growth over the years and the pandemic’s resilience.
As a result of the Vietnamese government’s strong support, major corporations such as Samsung and Apple have invested in this market. Vietnam is a rising star that stands out among other countries that are potential outsourcing destinations.
Socio-economic stability
Common outsourcing locales in Asia-Pacific are commonly afflicted by insecurity. Consider the 2006 Thai coup, the Pakistan-India Kashmir wars, and the clashes between the Sri Lankan military and the Liberation Tigers of Tamil Eelam. In contrast, because 95% of Vietnam’s population is ethnically Vietnamese and more than 80% of residents do not identify with any religion, the country is devoid of ethnic or religious conflict (according to Minority Rights).
According to Deloitte 2020, Vietnam has become a desirable investment destination across a wide range of industries, including manufacturing, real estate, energy, retail, and construction, as well as arts, tourism, entertainment, and other services. Given the wars in Iraq and the surrounding region, it has one of the most secure investment environments. Similarly, the Global Peace Index 2020 classified Vietnam as the 12th safest country in the Asia-Pacific region. In fact, Vietnam is a very stable country, which makes it an ideal location for outsourcing.
When outsourcing software, maintaining a relationship with the team working on their project is critical. You can easily fly to Vietnam to check on progress if you opt to outsource software to Vietnam for a project. There are several direct flights to Vietnam from other countries, mainly to Ho Chi Minh City and Hanoi. Traveling inside Vietnam’s metropolitan areas has become easier because of the country’s secure and modern infrastructure.
By strategically operating development teams throughout the day in multiple time zones, you can choreograph a 24-hour day of offshore software development with good organization and administration. Offshore outsourcing’s strength is this.
Vietnam is also well-known for Vietnamese tech talents and software developers, particularly in the information technology sector. As a result, enterprises and organizations all over the world can find and hire offshore tech startups in Vietnam.
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