Vietnam is not often the first country that people think of when it comes to software outsourcing but that is quickly changing.
From a software provider’s point of view, we choose to base our development offices in Vietnam for many of the same reasons as those looking to outsource their development to other countries.
Access to talented pool of software developers
Not only homegrown talent but also overseas university educated Vietnamese are coming back to work in their home country. Overseas education is expensive and out of reach for most of the population but an increasing number of families have been able to send their young adults to be educated abroad. In 2015 Vietnam sent over 130,000 students to study in various universities globally . These returning graduates infuse not only talent but diversity into the work force available to us.
Low turnover and motivated workforce
Vietnam’s income per capita in 2016 was $1770  while the average software developer makes almost triple that amount . A recent survey of 500 IT workers found that 84% of respondents said that the number 1 reason for working in the IT field was their love of computers and not the high salaries. 47% said that working on interesting products is the most important aspect of their job . As an outsourcing company, we focus on partnering with companies with high value and complex products to attract candidates. It is no longer competitive to offer high salaries without taking into consideration employee motivation and career goals.
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Companies developing software have significant tax incentives. The first few years companies pay zero corporate income tax (CIT). Further down the road, software companies follow a graduated CIT schedule that tops out at half the amount that most of companies in Vietnam pay annually. Software also carries no value added tax (VAT) which usually is 10%.
These are three tangible benefits for us to start and continue to do business in Vietnam after almost a decade. If you would like to find out more about having your own team of developers based in Vietnam, please reach out and contact me at email@example.com
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