Vietnam - promising land for software outsourcing Vietnam has been widely regarded to be a dynamic commonwealth with great outsourcing potency. Taking full use of its own advantages, Vietnam's software outsourcing industry is coming into a major player in the global arena.

Many leading companies are already outsourcing to Vietnam IBM, Citibank, CMG, NTT, Sanyo, Sony, Lucent, Nortel, Alcatel-Lucent, Oracle, Fujitsu, NTT, Hitachi, Toshiba, NEC, Juniper Networks, Microsoft, HSBC, Intel, etc...

Production cost One remarkable advantage of developing software in Vietnam is the relatively low labour cost when compared to other markets.

• Software developing in Vietnam is 90% cheaper than in the United States, and 50% cheaper than in Indian.
• Current charge-out rates of Vietnamese developers are about $20,000 per person per year vs. $40,000 in India.

Quality workforce

• The literacy rate of 97 percent, roughly equal to the rate in the US, Ireland, Russia and well ahead of India => among the world's highest
• A young, well-educated, highly motivated and technically savvy population, half of which is under 25.
• The number of 80,000 IT students graduating each year, which continues to increase by 9,000 annually => currently the third-largest outsourcer in Asia

Stability and Security Vietnam's over 30 years of political and socio-economic stability offers a hospitable business environment for outsourcing. It had to be a proof of something when Vietnam ranked as the safest nation in Asia for US travelers in 2002...

Government incentives IThe government has encouraged the development of technology-based companies and workers much by providing numbers of incomparable privileges including tax and investment incentives, such as low corporate tax rates, exemption from VAT, exemption on tariff for imported materials that are directly used for the production of software, etc ...