Outsourcing Software To Vietnam: Facts, benefits and limitations

Published on: September 01, 2019
Last updated: March 27, 2024 Read in fullscreen view

Recommended for you

15 Oct 2022 Project-based team model for one-off and pilot software development projects 611
06 Mar 2021 4 things you need to do before getting an accurate quote for your software development 449
19 Mar 2021 Selective Outsourcing of IT Functions - a new trend in business outsourcing 417
01 Sep 2022 Facts Chart: Why Do Software Projects Fail? 416
16 Dec 2021 Why outsource Python development of your project? 353
10 May 2021 What are things you should look for in a good IT outsourcing company? 341
14 Dec 2021 The Top 10 Problems with Outsourcing Implementation and How to Solve Them 336
16 Apr 2021 Insightful Business Technology Consulting at TIGO 329
06 Oct 2021 Intellectual property issues with outsourcing software development 326
12 May 2021 The Real Cost Between Outsourcing IT vs In-House: A Quick Comparison 313
03 Oct 2020 Outsourcing Your MVP Development - Streamlined Solutions for future 308
08 Feb 2022 Software Development: Fixed Cost or Opportunity Cost? 307
15 Aug 2021 TIGO Rate Formula - Things the partners should know 306
07 Jul 2021 The 5 Levels of IT Help Desk Support 301
19 Oct 2020 The hidden costs of outsourcing software development 294
24 Nov 2021 What is the Actual Cost of Hiring Cheap Developers? 291
22 Mar 2022 8 Mistakes Marketing Agencies or Consulting Firms Make When Outsourcing Web Development 273
02 Mar 2021 Estimate the Cost of Software Development 250
01 Jan 2023 4 New IT Outsourcing Pricing Models to consider in 2023 248
31 Dec 2021 Outsourcing Software Development to mitigate the impact of COVID-19 248
25 Nov 2021 Low-Cost Software Development: Buy Nice or Buy Twice? 243
03 Nov 2021 7 phases of Odoo Implementation and Development: Can they be outsourced? 239
05 Jan 2022 What Outsourcing Engagement Model is Right For You? 232
01 Mar 2022 Top 5 reasons why outsourcing to Vietnam is a smart move 232
04 Jan 2021 VIETNAM AS A BIG ATTRACTIVE DESTINATION IN THE FIELD OF OUTSOURCING 221
12 Jan 2023 Top 10 Trustworthy IT Outsourcing Companies in Vietnam 219
12 Oct 2021 Vietnam outsourcing path - the silk road connecting ASEAN with the developed countries (EU, US, Japan...) 219
21 Oct 2021 Advantages and Disadvantages of IT Outsourcing 214
10 May 2021 Project Audit and Second Opinion Services 205
01 Apr 2021 IT Outsourcing to vietnam: Why It Is A Good Choice? 202
10 Apr 2021 RFP vs POC: Why the proof of concept is replacing the request for proposal 200
03 Nov 2022 Top questions and answers you must know before ask for software outsourcing 195
03 Nov 2022 Top questions and answers you must know before ask for software outsourcing 195
01 May 2023 CTO Interview Questions 193
01 Jan 2023 Software Development Outsourcing Trends to Watch Out for in 2023 189
08 Oct 2024 Vietnam: The Rising Star in Global Outsourcing – Trends and Costs for 2025 184
07 Aug 2022 Things to Consider When Choosing a Technology Partner 183
16 Mar 2021 Outsource Data Engineering Services - TIGO Streamlined Solutions 177
11 Mar 2023 Common Pain Points in Software Development Outsourcing 168
01 Jan 2023 Top Software Development Challenges in 2023 162
02 Nov 2023 What are the pros and cons of iIT outsourcing? 161
13 Oct 2021 Why Outsourcing Software Development Services Is Gaining Traction With Non-Technical Leaders? 153
09 Feb 2023 The Challenge of Fixed-Bid Software Projects 151
20 Nov 2022 Software Requirements Are A Communication Problem 149
04 Apr 2024 Unlock Vietnamese-Japanese outsourcing potential 149
01 Oct 2022 Vietnam is a favorite supply of IT outsourcing services to Japan 148
01 Jan 2023 Top 5 IT outsourcing countries in 2023 147
08 Aug 2021 Why Nearshore Software Development is better than In-House Development? 147
17 Oct 2020 How Outsourcing can Improve Time Management for Better Business 146
01 Jan 2023 Why is Vietnam the Top IT Outsourcing Destination of 2023? 146
21 Oct 2022 Outsourcing Billable Rate 145
07 Oct 2022 Digital Transformation: Become a Technology Powerhouse 145
01 May 2023 Streamline Your Business with Outsourcing 136
01 Jan 2024 Tech Partnerships: Choosing the Right Software Outsourcing Firm in Vietnam 136
09 Mar 2022 Consultant Implementation Pricing 135
08 Nov 2022 4 tips for meeting tough deadlines when outsourcing projects to software vendor 133
10 Mar 2021 The 7 Biggest Mistakes to Avoid Before Outsourcing a Web Development Project 129
01 Mar 2023 How do you deal with disputes and conflicts that may arise during a software consulting project? 129
09 Jan 2021 How can outsourcing enable business agility? 126
01 Feb 2023 [InfoWorld] Is your outsourcer agile enough? 124
01 Jan 2024 12 reasons for software development outsourcing 124
01 Jan 2024 Software Outsourcing Questions for 2024 123
21 Aug 2022 Forbes: IT Outsourcing Hotspot: Vietnam, A Small But Mighty Powerhouse 123
01 Jan 2024 Hiring Tech Talents in Asia: An Overview of Skills, Costs, and Potential 121
13 Jan 2023 What are the Hourly Rates in Offshore Software Development? 119
08 Jan 2024 Outsourcing on an As-Needed Basis 117
07 Nov 2024 Outsourcing Crisis Looming: Will Trump's Policies Transform the Global IT Landscape? 116
17 Jan 2024 What are the benefits and challenges of using multi-sourcing or single-sourcing strategies? 115
09 Jan 2022 How to Bridge the Gap Between Business and IT? 115
28 Oct 2022 Expect the unexpected in 2023 - How Outsourcing Can Help? 115
15 Nov 2023 IT Staff Augmentation Types and the Best Choice for Your Business 112
16 Feb 2021 Choose Outsourcing for Your Non Disclosure Agreement (NDA) 109
09 Sep 2022 Close Collaboration and Communication Can Overcome the Challenges of Distributed Teams 105
03 Jan 2023 IT Outsourcing Costs: Is outsourcing really cost-effective? 103
10 Jan 2024 Facts Chart: Reasons for outsourcing 98
01 Jan 2024 What The World Is Flat Means to IT Outsourcing 75
02 May 2021 Outsourcing Software Development: Avoid 8 Mistakes 68
10 Jul 2025 Building AI-Driven Knowledge Graphs from Unstructured Data 43
17 Mar 2025 IT Consultants in Digital Transformation 39

FACTS:

The success of a Vietnamese company depends largely on the boss or CTO, CEO... Except the state-owned companies, the private sector is aware of the importance of leadership and training so there is an ever-increasing number of courses to assist SMEs and train the specialists for working in the international firms.

Vietnamese have a very good Math background like China and India. You can find the facts through annual international mathematical olympiads. As recently as 20 years ago, Vietnamese continue to reap more success in Informatics and Robotics. I don't think other ASEAN countries can surpass Vietnam in the basic sciences.

Below are the extended list of pros and cons when considering Vietnam as a new destination for outsourcing.

PROS:

Dynamic, fast and agile.
No nationalism like China, India.
Most Vietnamese people are atheist.
No political conflict (like extrajudicial killings in the Philippines), almost no significant natural disasters.
Pretty pleasant weather with 4 seasons in the North, but hot all year with rainy and dry seasons in the South.
Vietnamese are quite proactive and eager to be self-reliant b/c most of them were raised in poor families during the 1980s period.
Vietnamese have a very quick capability of adopting cutting-edge technologies.This is really a plus when working with them. Many Vietnamese developers have contributed remarkably to technical publications like codeproject.com. More and more people are aware of on-the-job training so apart from working, they apply for crash courses, blended learning and invest money earned into international certifications (PMP, PMI-ACP, Google certifications, Microsoft .NET MCSD...)

CONS:

The innovation! This cons is originally caused by the problems of society during the 1980s decade in which most people born before 1980 had to struggle with making ends meet rather than improving their career development. Fortunately, this has improved remarkably recently.
The average expertise of the entire group is lower than neighboring countries, but the average expertise of top-north individuals is better than most Asian countries, except Singapore.
Vietnamese are more aggressive than ASEAN countries but more quiet and gentle than Chinese.
Although their English speaking skill isn't the pros, their reading and writing skills are super good. Their English writing style is simple and understandable. Like Chinese and Philippines, Vietnamese speak English with less impact by regional accents.

IN CLOSING

For smaller clients outsourcing simple projects like apps or websites, Vietnam offers terrific value and can be very successful, although language barriers are still a significant issue and quality issues abound. So, Vietnam is still best for experienced clients who can help ensure their projects stay on track.

There are certainly some very experienced, very skilled developers in Vietnam but overall the region is still fairly new at outsourcing, so the average developers only have a few years of experience. It may be a few more years before Vietnam reaches the point where seasoned tech leads are easy to find, but larger clients should be able to find skilled, productive teams.

Pham Dinh Truong (Henry)
CEO, TIGO Solutions

A A A A

[{"displaySettingInfo":"[{\"isFullLayout\":false,\"layoutWidthRatio\":\"\",\"showBlogMetadata\":true,\"includeSuggestedAndRelatedBlogs\":true,\"enableLazyLoad\":true,\"quoteStyle\":\"1\",\"bigHeadingFontStyle\":\"1\",\"postPictureFrameStyle\":\"1\",\"isFaqLayout\":false,\"isIncludedCaption\":false,\"faqLayoutTheme\":\"1\",\"isSliderLayout\":false}]"},{"articleSourceInfo":"[{\"sourceName\":\"\",\"sourceValue\":\"\"}]"},{"privacyInfo":"[{\"isOutsideVietnam\":false}]"},{"tocInfo":"[{\"isEnabledTOC\":false,\"isAutoNumbering\":false,\"isShowKeyHeadingWithIcon\":false}]"}]

Via

{content}