According to getassist.net (USA) on February 7, Vietnam has a strongly developed ecosystem of software outsourcing service providers. The trend of outsourcing and software processing is expected to continue to grow as businesses can access high-quality services at low costs. Vietnam is quickly becoming a dynamic hub for high-quality software solutions at competitive prices.

Furthermore, Vietnam also benefits from a talented talent pool with lower labor costs than other service provider countries. The country is witnessing a notable boom in software development outsourcing globally. The Information Technology sector in Vietnam reached 7.32 billion USD in 2020, surpassing 2019’s figure by more than 1 billion USD.

Asia’s software outsourcing powerhouse

Vietnam is emerging as one of the leading centers of the IT software outsourcing industry in the Asia-Pacific region and globally.

Large multinational technology corporations such as IBM, Intel, Nokia, Samsung and Microsoft all choose Vietnam as their preferred location for IT services. Outsourcing projects include mobile application development, web, quality assurance, staffing, business process and other digital services, helping to drive business growth and meet customer needs. meet the strategic goals of the business.

The IT industry is attracting a large amount of direct investment from many countries. With more than 1,600 foreign corporations investing in Vietnam’s IT industry, the total registered capital reached 13 billion USD. The US remains the top investor, followed by Asian countries such as Japan, South Korea, Singapore and China.

Although the COVID-19 pandemic has caused many difficulties for many business sectors, it does not seem to have seriously affected the IT industry globally, including Vietnam.

Government support

To promote the spirit of entrepreneurship, the Vietnamese Government has created many funds at the provincial, city and national levels to support start-up technology businesses. In addition, the Government cooperates with banks and other countries to develop innovation programs, provide capital, technical training, loan support and monitor business activities. This explains why the domestic startup ecosystem is growing strongly in many different fields.

Tax incentives play an important role in attracting foreign companies and investors. In addition, the Government also prioritizes investment in the IT sector and encourages investment in this industry. Technology companies can take advantage of corporate income tax incentives such as: 15 years of corporate income tax at 10%, tax exemption for 4 years and 50% tax reduction for the next 9 years. These are favorable conditions that international corporations can hardly refuse when thinking of operating in Vietnam.

Unlike some regulations in some Asian countries, where foreign companies are only allowed to own a maximum of 50%, Vietnam allows international organizations to own 100%. This makes Vietnam an attractive destination for setting up a business.

Outsourcing prospects in Vietnam

Currently, while India is facing some minor challenges in the field of software outsourcing, Vietnam continues to grow. Besides other software outsourcing hubs in the Asia-Pacific region such as Thailand and Cambodia, Vietnam needs to maintain patience in training and attracting technology talent. The government is promoting investment in STEM (science, technology, engineering and mathematics) education, and multinational corporations are expanding their operations in Vietnam, which will boost labor force and market.

With the significant increase in smartphone usage, increasingly popular internet and young population, Vietnam offers great potential opportunities for startups, especially in the commercial sector. electronics, financial technology (fintech) and enterprise solutions, attracting a significant amount of investment capital in recent years. In addition, Vietnam also opens up great opportunities for businesses that want to expand operations to Southeast Asia. Many organizations and businesses are taking advantage of Vietnam’s talented labor force to build and develop their brands.