Why VietNam

Production cost: Vietnam is quickly emerging as a dynamic destination for the development of low-cost quality software in Asia. While specification on the cost savings in taking software projects to Vietnam is changing, all show very compelling price differences. For example, CIO Magazine (Nov, 2001) suggests that developing software in Vietnam is 90% cheaper than in the United States, and between one third and one seventh the cost of developing in India. Researching Vietnam, an in-country outsourcing intermediary, claims that software outsourcing costs in Vietnam are half the cost of Indian rivals (South China Morning Post, 2002). These figures are echoed by Andersen Vietnam, which estimates that current charge-out rates of Vietnam-based developers are about $20,000 per person per year vs. $40,000 in India. These differences in labor cost are expected to increase as Indian firms mature and the eventual market recovery allows them to raise prices to post-recession levels.

Strong labor pool: Vietnam has population of 85 millions people, over 60% of the population is under the age of 30, who are young, literate and increasingly interested in technology. In Vietnam, there are about 20,000 technical engineers graduated each year. As a testament to the quality of the talent, Vietnamese programmers were ranked second out of more than 60 nations in the 1999 International Software Olympiad. Language skills in Vietnam pale when compared to the rich pool of native speakers in outsourcing hotspots of India, Ireland and Canada. However, the Vietnamese benefit from an alphabet based on Roman characters and a historical legacy that has created a greater awareness of French and English than many East Asian rivals. And these are just a few of the clear signs that Vietnamese society is becoming more educated, more technically capable, and more globally competitive. If outsourcing technology products and services make good business sense, it will be better to take a close look at Vietnam, at TVO.

Stability and Security: Today, Vietnam has one of the most enviable economic growth rates in the world. The Vietnamese government has proven to be both stable and secure and is now widely recognized as "legitimate" by the world’s major trade nations. Relatively positive relations with neighboring countries have been promoted. In an age of heightened security concerns, it was noteworthy that in 2002 Vietnam ranked as the safest nation in Asia for US travelers.

Government Incentives: The nation is clearly moving to open markets and offer incentives, particularly in the IT sector. The software industry has been receiving a lot of active support from government indicating by a nationwide strategy for software development industry, software development investment stimulating and encouragement policy, and tax incentive commitment …etc. Over the last several years, significant reforms, including a wide-ranging trade agreement with the US and the promise of World Trade Organization membership in 2006, have caught the attention of significant investments in education, transportation, housing, and technology looking for capable off-shore partners and foreign investments, now exceeding $30 billion.