Vietnam is one of the most exciting outsourcing destinations in South East Asia. It is the easternmost nation on the Indo-China peninsula and thirteenth most populous country in the world. One of the key notable features of Vietnamese population is the high literacy rate of around 96 percent – this in spite of the fact that Vietnam has a Socialist background and is relatively poor. One of the key positives of Vietnam is the low overall cost of running operations. The salary costs are extremely low followed by the low cost of operations. There is a relatively robust availability of IT services and product development talent though the talent is mainly involved in low value services. Vietnam, however, also suffers from a few negatives such as low English proficiency levels which can hamper the growth of global services. There is also lack of skilled and experienced manpower which hampers taking up of higher complexity work. Vietnamese workforce also needs to be handled properly as they are very sensitive to cultural issues.
The young and newly exposed talent of Vietnam is quickly aligning itself with the global work culture. Compensation and Brand Value retain top billings of employee expectation while the work culture is evolving to global standards. Employee attrition is very modest in Vietnamese IT industry making it a very exciting destination for various services especially IT services though the same is constrained by lack of adequate numbers.
In terms of talent numbers, Vietnam has around 15,000 employees in IT services while it has around 13,000 employees in product development. The software product development talent is around 10,000 while hardware product development is around 3,500. The BPO talent is miniscule at around 2000 while Tech Support talent is even lower at around 500