Have you been thinking about outsourcing tasks in your business to an offshore provider?
Have you considered Vietnam?
The benefits to business efficiency and scale from outsourcing certain tasks and processes are well documented. However, finding the right location and then the right provider can be daunting. That’s why we have compiled these 3 facts about the Vietnam outsourcing industry.
1. 30% of University Graduates are employed in the Vietnamese Outsourcing Industry
Consider the following:
- The population of Vietnam was 97.47 million in 2021 (World Bank, 2021)
- In Dec 2022 the number of people employed in Vietnam was 51 million (CEIC, 2022)
- According to the General Statistics Office of Vietnam, the proportion of Vietnamese with a Bachelor degree or higher qualification was 8.9%. Assuming all of those graduates are working, this equates to around 5 million University qualified people in the Vietnamese workforce.
- In 2021, The Vietnamese outsourcing industry employed about 1.5 million people (Vietnam Briefing, 2022).
- Now let’s assume most outsourcing companies typically only employ people with university qualifications.
Armed with these stats we can see that around 30% of Vietnamese University Graduates are employed in their local outsourcing industry.
2. The Vietnam Outsourcing Industry is growing at an estimated 20-30% annually
The outsourcing industry in Vietnam is thriving off the back of heavy investment by the government into the education system and improvements in the English Proficiency of the Vietnamese people. This investment aims to ensure that Vietnam can perform on the world stage with other countries, particularly in Asia. In addition to this, the government also sees the potential of the Outsourcing industry in becoming one of the largest contributors to the country’s GDP (Vietnam Briefing, 2022). Not only is this additional support and investment working in developing a thriving outsourcing industry, but according to KPMG Vietnam (2021), it is attracting big players in the Global markets such as IBM, Samsung and LG.
3. The Vietnamese Outsourcing Industry attracts talent across a multitude of skills and occupations
Of the 1.5 million people employed in the outsourcing industry, Vietnam Briefing (2022) states that there are over 400 000 IT professionals, 200 000 engineers and 500 000 other workers including accountants, bookkeepers, marketers and designers. So there is no shortage of talent across many different industries and job requirements.
As you can see, Vietnam has a thriving outsourcing industry that is already holding its own against other better known outsourcing locations such as India, The Philippines, South Africa and South America. Vietnam should definitely be included as part of your research and due diligence when looking for an outsourcing provider to partner with.
If you want to know more about how Vietnam compares to other well known outsourcing locations around the world then download our ebook now.