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6 Key Benefits of Outsourcing in Vietnam You Should Know

Table of Contents
Benefits of Outsourcing in Vietnam

Vietnam is becoming a popular place for outsourcing. Many companies from around the world choose Vietnam for its skilled workers and low costs. This is especially true in IT and BPO (Business Process Outsourcing). Vietnam is becoming a strong competitor to countries like India and the Philippines in outsourcing.

More and more companies are picking Vietnam for outsourcing. This shows that Vietnam is becoming a key place for this kind of work.

In this guide, we will look at outsourcing in Vietnam. We will talk about how much people earn, the main industries, and how to manage teams that work from different places. We will also look at how Insightful’s software can help you watch and manage your team that works outside your office.

Understanding the Vietnamese Dong for Outsourcing

When you outsource, knowing about the currency, the Vietnamese Dong, is important. Let’s compare it to other big currencies:

  • 1 US Dollar is 24,472 VND
  • 1 Euro is 26,868 VND

In Vietnam, people usually earn about 6.5 million VND a month. This is about $265 USD. Knowing how much the Dong is worth and how much things cost in Vietnam helps you understand how much you will pay for outsourcing work.

Understanding Salaries in Vietnam

In Vietnam, how much you earn depends on your job, education, and where you live. Jobs like IT Manager, Software Engineer, and Project Manager pay more. But, jobs like Data Entry Clerk and Customer Service Representative usually pay less.

Vietnam is working to make pay more equal for men and women. Some jobs still pay differently based on gender. Companies are trying to fix this. They are making rules to help everyone get equal pay. Workers often get extra money for good work, at the end of the year, and help with costs for their house, travel, and health.

The Benefits of Outsourcing Software Work to Vietnam

1. High Skill Level and Many Engineers

Vietnam knows job training and tech skills are important. The country has over 1,900 vocational schools. These schools teach skills needed for jobs. Many people in Vietnam are good at different computer languages and ready for various projects.

Companies that want to outsource software work look for skilled companies. Vietnamese software companies are good at many technologies. They know about new areas like Blockchain, cloud computing, IoT, and Machine Learning. They also know other common software technologies.

In Vietnam, some tech skills are more common. It’s easier to find people good at .NET, JS, and Quality Assurance than Ruby and Scala. This doesn’t mean there are no good Ruby and Scala developers. It just means there are fewer training programs for these skills.

The software industry in Vietnam is growing fast. It has grown 10% each year for many years. This is because more skilled people are working and more foreign companies are investing in Vietnam. This growth is likely to keep going. Vietnam is ready to do many kinds of software outsourcing jobs

2. Good English Skills

Language can be a problem when outsourcing software work. English-speaking companies might worry about language issues when outsourcing to other countries. But in Vietnam, this is less of a problem.

Many educated people in Vietnam speak English well. College graduates, no matter what they studied, usually know English. This means software engineers in Vietnam often have good English skills. Companies can feel confident that there won’t be big language problems. Vietnam is ready for software projects with English needs.

At EZtek, we focus on strong English skills. When we hire and review our team, we check their English. We also help them improve their English. Most of our engineers in Vietnam can speak English at an upper-intermediate level.

3. Low Costs for Outsourcing

When thinking about outsourcing, the main questions are about cost. Is it affordable? Vietnam is one of the cheapest places for software development outsourcing.

In the USA, software work can cost over $100 per hour, sometimes even $400 per hour. But in Vietnam, the cost is between $20 and $40 per hour. This depends on how experienced the team is. These low prices are great for the quality of work you get.

To understand better: In Vietnam, a software developer usually earns about $900 USD per month. This is much less than in the USA.

Even though Vietnamese developers earn less than American ones, the cost of outsourcing in Vietnam is still low compared to other countries. This makes Vietnam a top choice for outsourcing software work. The average yearly salary for a software engineer in Vietnam is just under $20,000 USD.

4. Good Investment Environment

Vietnam has made free trade deals with the European Union and the United States. It has strong IT, good transport, low labor costs, and many young workers. This makes Vietnam a great place for foreign investment.

From 2010 to 2019, Vietnam got $143 billion from investors around the world. In 2020, it was 70th out of 190 countries for easy business.

Trading economics says that Vietnam keeps getting foreign money. In the first two months of 2022, it got $2.68 billion. This is 7.2% more than last year. Singapore, South Korea, and China invest the most in Vietnam.

The Vietnamese government wants to get $50 billion more by 2030. They are changing rules to make this easier. They want to make sure investments are good quality, work well, and protect the environment.

5. Young and Educated Workers

Statista’s data from 2020 shows that Vietnam has about 74.3 million workers. 40-45% of them are under 35 years old. Vietnam is also a leader in Asia Pacific for adult reading and writing skills, with 95.4% literacy.

Vietnam has about 1900 places for job training. This helps young people stay ready for work. The government focuses a lot on teaching engineering and science. This is because there is a big need for software development work.

Vietnam has over 250 universities and 187 technical schools. They teach many computer languages. Every year, these schools have about 400,000 new IT engineering graduates and 50,000 IT students.

With all these schools, Vietnam is ready to provide skilled workers for companies that want to outsource there.

6. Modern Business Areas

Vietnam is different from the United States because its skilled workers and outsourcing companies are mainly in a few cities. This makes it easier to find the right people for jobs in Vietnam.

If you need a software outsourcing company, look at Ho Chi Minh City, Hanoi (the capital), and Da Nang. Each city is good for outsourcing in its own way. Ho Chi Minh City is the main place for business in Vietnam. Hanoi is the center for government. If you want new graduates, Hanoi has more students finishing school each year. But, Ho Chi Minh City has more workers with a lot of experience. The software business in Vietnam is growing and will keep growing.

For example, EZtek has a great office in Ho Chi Minh City. The office is in a new building in a busy business area. It is a nice and modern place. It has good lighting and new technology. The office is safe and keeps our clients’ important information secure.

Global Delivery Model


Vietnam is becoming a top place for companies to outsource software development. It has been a good place for investment for more than ten years.

Vietnam is known for having many skilled software engineers. This means you can find people for your project that are good at their job and not too expensive. The software outsourcing business in Vietnam is growing fast. It’s easy to start and move forward with projects in Vietnam. This can be hard in some other countries.

Clutch, a website that reviews staffing and outsourcing, says Waverley Software is the best in Vietnam. It’s ranked number one for software outsourcing there. Waverley is in Ho Chi Minh City and has a lot of great workers. Big companies like Seagate and Mozilla work with Waverley for their software projects.

Waverley’s office in Vietnam is very safe. They have cameras, private areas for teams to work together, and control who can come into the office. This keeps your project safe.

Choosing EZtek in Vietnam for your software project is a smart choice!


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