Vietnam has undergone one of the more remarkable economic transitions in world history.
It was only back in 1986 that Vietnam was considered a ‘poor country’, but in that same year, significant economic reforms were launched, known as the ‘Doi Moi’ that heralded a significant makeover that now sees it ranked in the top 50 countries globally.
‘Doi Moi’ or ‘restoration’ meant freeing up the domestic market, reducing reliance on Russia for economic support, encouraging foreign direct investment and decreasing subsidies to state-owned enterprises.
In fact, according to the World Bank, between 2002 and 2021, GDP per capita increased 3.6 times, reaching almost US$3,700. Poverty rates (US$3.65/day, 2017 PPP) declined from 14% in 2010 to 3.8% in 2020.
The International Monetary Fund (IMF) predicts Vietnam’s real GDP growth to be at 6.2% this year (Australia’s GDP growth is predicted to grow at 1.6%) with inflation to sit at 3.9%.
Vietnam also has a population of 100 million people – four times that of Australia – meaning that there are a vast number of choices to get projects started and completed.
Education is high on the list of government priorities too with the recently completed Vietnam Enhancing Teacher Education Program improving the quality of teaching and learning by delivering online continuous professional development training to more than 530,000 teachers and school principals in general education.
Vietnam’s average duration of schooling is 10.2 years, second only to Singapore among the Association of Southeast Asian Nations countries. Its human capital index is 0.69 out of a maximum of one, the highest among lower middle-income economies.
And according to the Programme for International Student Assessment, Vietnam ranks eighth in the world for science and 22nd in the world for mathematics. This test is conducted on 15-year-olds, meaning Vietnam has a bright future in the business and education world.
Its tertiary sector has improved drastically with six of its universities sitting in the overall Times Higher Education World University Rankings. Information Technology degrees rank in the top five preferred courses for all students, and with a student population of two million, that is a lot of technical knowledge being accumulated.
Software knowledge and development is high in Vietnam.
The Vietnamese IT sector is experiencing rapid growth, with an increasing demand for skilled workers, making education and training essential for the industry’s success. The government of Vietnam is taking proactive measures to improve the quality of IT education, including updating curricula and investing in teacher training, to keep pace with industry demands.
The Vietnamese Government plans to develop the digital economy that will account for 20% of Gross Domestic Product (GDP) by 2025 and increasing to 30% of GDP by 2030.
It may surprise many to discover that Vietnam is a preferred hardware supplier. It manufactures most Samsung mobile phones, iPads and Apple Bluetooth headsets.
Vietnam is also a big developer of source code meaning that Australian companies can easily outsource the software development lifecycle with a chain of command in place but with the ultimate decision making still residing in Australia.
Many international companies are now seeking to establish development centres or work with IT software developers to get their project underway at a lower cost combined with faster production.
A preferred destination
A.T. Kearney, a global management consulting firms, regularly ranks Vietnam among the top five most attractive destinations for IT outsourcing services.
Notably, software developers in Vietnam are also rising to the top of the region. According to data compiled by the application data and analytics firm Data.ai, seven out of the 20 most frequently downloaded apps in Southeast Asia come from Vietnam.
Vietnamese software developers are world class and with the support of government investment, world ranking universities and corporate training programs, it is positioned to take advantage of countries like Australia to outsource too.
Enhanced IT software training programs have become increasingly popular as businesses aim to upskill employees and stay competitive in the fast-paced industry. Online learning platforms have gained popularity in Vietnam’s IT industry, providing accessible and flexible options for professionals to enhance their skills and knowledge.
If you want to learn more about Vietnamese education and why it’s ranked high along with leading countries, check out our eBook, “Top Outsourcing locations around the world: And why Vietnam is up there with the best“.