Why Outsourcing to Vietnam is a Wise Move?

28 Apr 2023

Outsourcing software development drives the economies of many developing nations. Due to their experience and people resources, India and China are widely acknowledged as the industry leaders in outsourcing software development. Surprisingly, Outsourcing Vietnam service is rapidly rising and a worldwide IT hub alongside these two powerhouses.Because of Vietnam’s established track record of stability and high concentration in the information technology field, Vietnam is an excellent choice for meeting the needs of modern outsourcing.

Is Outsourcing Software To Vietnam A Wise Move For Businesses?

People new to outsourcing may be concerned that overseas firms are unable or unwilling to produce quality work, communicate with the onsite teams, and meet established milestones and goals with the same aptitude and excellence as onsite workers. Those new to outsourcing to Vietnam may also be concerned that overseas firms must meet set milestones and goals. Onshore obstacles, such as difficulties in establishing and maintaining communication, language hurdles, and other challenges, along with various challenges, may give the impression that outsourcing is an alternative fraught with too much danger.

Outsourcing to Vietnam is a wise move for businesses
Outsourcing to Vietnam is a wise move for businesses

However, there are a large number of outsourcing Vietnam companies that prioritize not only providing cost-effective solutions to their customers but also ensuring that these solutions are of the highest quality, adhere precisely to the specifications provided, are completed with the utmost dedication; and meet all of the requirements imposed by the deadlines. Vietnam is gaining popularity in Asia as a cost-effective and high-quality software development outsourcing destination. Compared to software development in the United States, outsourcing to Vietnam can save up to 90 percent of expenditures, according to CIO. Even better, software development in Vietnam is between one-third and one-seventh, as inexpensive as in India. These numbers are convincing for multinational enterprises to begin outsourcing software development to Vietnam.

Outsourcing to Vietnam – The Next Global Trend In The IT Industry

Outsourcing Vietnam company is an intermediary, which stated that, upon their research, outsourcing software development costs 50% less in Vietnam compared to India. In addition to Outsource Vietnam, Anderson Vietnam estimates that outsourcing per person in Vietnam is only $20,000 per person compared to $40,000 per person in India. 

According to Forbes, Vietnam has overtaken other popular BPO locations, primarily China, to become the next IT hotspot in Asia-Pacific. Notably, compared to Chinese developers, who charge about $20 to $50 per hour, Vietnamese developers provide more affordable hourly rates ranging from $14 to $40. 

These figures are convincing enough to place Vietnam as the top future contender for offshore development projects.


As with most countries where outsourcing is enormous, the cost of outsourcing to Vietnam is relatively reasonable. The rates are even said to be cheaper than most outsourcing hot spots. Companies can access skilled workers and a competent workforce while still saving money. The average rate for hiring a skilled senior developer from Vietnam would only cost $35 per hour. In comparison, a senior developer outside of the outsourcing industry would cost an average of $140 per hour

In Vietnam, labor costs 90% less than in the U.S., 50% less than in China, and 30% lower than in India, which means more funds for development. On the list of the “Best nations to outsource to in the World in 2019,” MarketsInsider places Vietnam in the fifth position.

Read More On: Top 15 Vietnam Software Outsourcing Agility Development 

Vietnam has labor cost lower than another country
Vietnam has labor cost lower than another country

High-quality labor force

The Vietnamese government recognizes and promotes the importance of education and training. Today the country has a 96% literacy rate, and 80% of the country’s college graduates hold degrees in the sciences (Vietnam Economic Times). This makes Vietnam an exceptional country for outsourcing technological projects because the highly educated population has a high scientific and technical literacy level. The average age of the Vietnamese IT workforce is relatively young, with 40 to 45% under 35. Vietnamese young generations are now dispersing globally, attending prestigious universities and institutions, and contributing their knowledge to improving the local IT talent pool. 

The World Education News and Reviews reported that the third largest student population in the U.S. is Vietnamese.

Vietnamese young generations
Vietnamese young generations are contributing their knowledge to improving the local IT talent pool

It continues; many IT talents are trusted and hired by prominent Silicon Valley corporations like Google, Apple, Facebook, etc. As Glints stated in 2022, “Vietnamese tech talent is the most sought-after internationally.” This is partially due to the nation’s potentially strong tech talent base knowledgeable in cutting-edge expertise, artificial intelligence, blockchain, data science, etc.

Cutting-Edge Technology

Simply put, “cutting edge” or “bleeding edge” technology has not yet had time to complete maturity. This means there is always a substantial possibility of unreliability. On the other hand, we should distinguish experimental software from cutting-edge development. Software that has left beta and is now available to the public and corporate customers is an example of cutting-edge technology. However, either group still needs to test it thoroughly. This is cutting-edge technology, the kind people talk about in terms like “game-changing.” The cloud, containers, AI, and ML were all cutting-edge technologies at one point. 

As of right now, they are all standard fare. Quantum computing, deep learning, co-biotics (the cooperation of humans and robots), and neuromorphic processors are all examples of recent developments in technology. Furthermore, these might be the norm a few years from now. Vietnam is one of the countries in Asia with the most rapid economic growth, and it is now making its way onto the world scene with cutting-edge technology. 

The fact that many comprehensive information technology corporations have established a presence in Vietnam proves that the country is a leader in several technological domains. Complex technologies such as cloud computing, the internet of things (IoT), blockchain, artificial intelligence and machine learning, and many others are being implemented and adapted throughout the country.

Read More: Vietnam as an IT Outsourcing Powerhouse: A Solution for Future 

Cutting-Edge Technology
Vietnam is one of the countries in Asia with the most rapid economic and technology growth


Socio-economic stability


Typical business process outsourcing destinations in Asia and the Pacific are frequently unstable. Take, for instance, the coup that took place in Thailand in 2006, the wars that have taken place in Kashmir between Pakistan and India, and the struggles that the Sri Lankan military has been having against the Liberation Tigers of Tamil Elam. Many travel recommendations issued by the United States caution Americans against coming to specific regions, but fortunately, Vietnam is not affected by the problems plaguing these other countries. Vietnam is an exceptionally secure nation, which helps foster a favorable climate for conducting business, particularly outsourcing. Vietnam is one of the more politically and socially stable countries in Southeast Asia, especially in comparison to other countries in the region. 

According to the Global Peace Index 2020, Vietnam is the twelfth safest country in the Asia Pacific area. It was also placed 12th overall. 

This indicates that there is little risk of significant disputes or turmoil for businesses operating in other countries to conduct their operations within this country. Over the past two decades, the Vietnamese economy has likewise risen significantly and flourished. The World Bank predicts that Vietnam will recover from the epidemic and achieve a GDP growth rate of 5.5% in 2022, increasing from the GDP growth rate of 2.6% in 2021.

Socio-economic stability
Vietnam is a stable country economically and socially

Political stability

Since the current government has been in power since Vietnam’s reunification in 1975, the nation has enjoyed nearly 30 years of uninterrupted political stability. The most recent major fight with a country that is geographically adjacent to this one occurred approximately three decades ago, in 1978. Bill Clinton, while he was president in 2006, and George W. Bush while attending the APEC summit, traveled to the country. During his trip, Bush met with a number of the country’s top officials, including the president, the prime minister, along with the head of the Communist Party, which highlights the political stability of the country.

See more: 25 Best Software Outsourcing Companies Based in Vietnam [2024 updated]

George W. Bush visited Vietnam
George W. Bush visited Vietnam


The Global Peace Index 2020 placed Vietnam in the 12th spot for the Asia Pacific region’s safest and most socio-politically stable country. This ranking was based on the country’s overall score.


Business environment


Since the reform of its previously centrally planned economy known as “doi moi,” which took place thirty years ago, Vietnam has had a free market. Today, the policies of Vietnam promote a business environment that is friendly and open to the participation of foreign investors. Vietnam has been luring a massive influx of investment from international technology giants and manufacturing groups, typically Apple, Canon, Microsoft, Nokia, Intel, LG, and Samsung. This is in addition to the signing of Free Trade Agreements (FTAs) with the EU in 2019, which took place in 2019, and the successful containment of the Covid-19 pandemic in 2019. 

According to a report by Savills Vietnam, several other technology companies from Japan (including Sharp, Nintendo, and Komatsu) and Hong Kong (including Lenovo) are considering relocating their production to Vietnam shortly.

See more about: TOP 5 Salesforce Companies in Vietnam Updated 2024 

Vietnam signed FTA with EU in 2019
Vietnam signed FTA with EU in 2019

Language and communication

Because Vietnamese, like English, is written using the Latin script, it is far simpler for native Vietnamese speakers to pick up the English language than for speakers of other Asian languages. English is the country’s second most widely spoken language, and many of Vietnam’s college graduates have a strong command of the language. 

According to the EF English Proficiency Index 2020, Vietnam’s English proficiency was rated as the 13th best in Asia and the 65th best worldwide. 

As a direct consequence, ninety percent of IT workers in Vietnam who are employed on outsourcing Vietnam projects can communicate in English at an intermediate or better level.

Language and communication
English is the Vietnam’s second most widely spoken language

Presence of Global Companies

Another reason many businesses are interested in outsourcing to Vietnam is that many large corporations already have a presence there. This is one of the reasons why. IT behemoths such as Intel, LG, Samsung, and IBM, amongst others, have outsourced certain operations. In addition to Sony and Cisco, Bayer is also listed. They frequently outsource full-cycle services, online applications, mobile or web-based enterprise solutions, and more information technology services. This demonstrates that Vietnam is a capable country, why outsourcing software to Vietnam is a viable option, and that its workforce has earned the trust of many large corporations worldwide.

Who Should Outsource To Vietnam?

Since the beginning of a decade and a half, the software outsourcing industry in Vietnam has flourished. A significant portion of information technology work is currently being sent to Vietnam by several Japanese corporations. Vietnam is an important contributor to Intel’s ability to satisfy its requirements for outsourcing. Nortel Networks, Bayer, Sony, Cisco, and Anheuser Bush are just some other businesses that have decided to outsource their operations to Vietnam (source: CIO.com, “Outsourcing to Vietnam”). Vietnam’s software outsourcing sector is promising, with many years of growth ahead of it and a great deal of untapped potential to investigate. 

According to data from the Ministry of Information and Communications, Vietnam’s software exports totaled $3.5 billion in value in 2018. As of 2019, Vietnam is among the top five countries for outsourcing software.

Vietnam's software outsourcing sector is promising
Vietnam’s software outsourcing sector is promising

See more about: Top 30 Best Vietnam Software Development Companies 

MOR Software As Your Potential Outsourcing Vietnam Partner

MOR Software is a top-tier software outsourcing Vietnam firm with over eight years of experience in the information technology industry. We have a staff of over 200+ IT specialists who can assist you in developing bespoke applications to meet your company’s requirements. We do not use a one-size-fits-all methodology when developing software; instead, we make sure that every project is tailor-made to meet your specifications as well as the unique requirements of your company.

MOR Software is a top-tier software outsourcing Vietnam firm with over eight years of experience in the information technology industry
MOR Software is a top-tier software outsourcing Vietnam firm with over eight years of experience in the information technology industry

MOR Software, which stands out among other outsourcing companies based in Vietnam, possesses the capability and experience to undertake any size outsourcing project from beginning to end, under budget, within the planned time, and with results that will exceed your expectations. This is made possible by our many years in the market working with over 100+ global partners. What are some options we have?

  • Agile Development Process takes a Test-First-Pushed Approach and is continuously driven by customer input. This helps us provide high-quality products more quickly.
  • A pool of skilled and devoted workers, many of whom have degrees from Vietnam’s most prestigious educational institutions and are overseen by seasoned project managers, is continuously improved upon and cultivated by our company.
  • The ability to better understand the requirements and expectations of international partners and multicultural projects thanks to our multinational leadership team, which has years of experience working with clients worldwide.

Offshore development is becoming increasingly popular; hence, if you have a concept for outsourcing to Vietnam but need help operating, please discuss your ideas with us so we can collaborate on developing them. MOR Software is a one-stop shop that can meet your requirements for software development, whether you are looking for mobile software apps, enterprise applications, or e-commerce solutions.

"CEO and co-founder of MOR Software JSC, holds a degree in Information Technology from Hanoi University of Science and Technology. He is an experienced IT professional with software outsourcing, networking, and database management expertise."

Vu Van Tu


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