In the last two decades, Vietnam has stepped up in the global economic landscape and confirmed its role as one of the most ideal offshoring destinations in the world. In essence, what are the reasons behind this phenomenal development and how do multinational corporations adapt to these factors?
The 21st century would be the century of Asia-Pacific region, and Vietnam possesses the geo-political location right in the middle of this dynamic economic bloc. Establishing an offshoring staff in Vietnam, or even office in Vietnam means your company will be on the rising tide in global development. In addition, the proximity allows Vietnam to be a strong ground for multinationals, should they choose to expand their operation in India, China, Malaysia, the Philippines, or Indonesia.
Golden Population Structure and Talent
It is estimated that nearly 60% of Vietnamese population are in their 20s and 30s. This factor assures that foreign companies can tap into a stable talent pool for any of their long-term projects and vision. More importantly, the quality of the labour force is Vietnam’s trump card in attracting firms from all around the world. The country offers English-fluent; dedicated and experienced staff who, once trained, can master all modern technologies and handle any complicated business functions. Their strong competence has been proven in fields such as IT, Finance, Law, Sales & Marketing.
In a recent report on CIO.com, Chief Digital Officer and Senior Vice President Anna Frazzetto at Harvey Nash pointed out an interesting cultural trait of Vietnamese workers: family orientation. Vietnamese people tend to follow stable career paths and work locally to live near and take care for their family (both immediate and extended ones). It overshadows the high employee turnover affecting tradition offshoring destinations like China and India. The call from home also witnesses Vietnam welcoming back many students from overseas, which accounts for an increasing portion in high-level workforce.
Government Support and Encouragement
Previously conservative to the global economy, Vietnam has greatly adapted to the world stage following the participation in WTO in 2007 and more recently, the Trans-Pacific Partnership (TPP). For the last two decades, Vietnamese government has been pursuing strategic improvements in market economy institutions and legal transparency to wipe out the consequences of bribery, bureaucracy, and complicated legal processes. Today, foreign business entities are welcomed with supporting policies, tax incentives and political stability – all to move towards an ideal environment for investment and win-win partnerships.
Infrastructure and Transportation
Finally, infrastructure and transportation systems are where Vietnam experiences the biggest upgrade. Skyscrapers, modern office spaces, and six-lane highways are common sights now in two financial hubs: Ho Chi Minh City and Hanoi. Companies can easily maintain smooth operation and communication between offshore teams and local teams back in their headquarters. Technologies are embraced and implemented to reach data security standards and provide companies with immediate response in case of an emergency situation.
With 5 years of operation in Vietnam, this has allowed ASW Global to take advantage of those incentives and help many Australian companies grow their talented, global teams. If you are interested in the opportunities and prospects Vietnam has in stock, contact us today to learn more.