Benefit From Trade And Investment Incentives
Having an offshore operation based in Vietnam allows your company to expand and benefit from trade and investment incentives, without the usual overheads.
Vietnam is now the best choice in the region for offshoring, as government policies have enabled the country to stay protected from recent changes to trade partnerships, quality is high, and costs are low.
Vietnam provides an attractive and less risky alternative to more established locations, such as India and China. It also ranks higher in the 2017 global talent index than India. Asia-Pacific countries within the top 25 globally were all high-income and high-cost locations: Singapore (2nd), Australia (6th), New Zealand (14th), and Japan (22nd).
Unlike many of its rivals, Vietnam has a new generation of talent developing at the same time as its technology sector matures. The school system’s focus on ICT and English is designed to uphold the ambitions of the government and put Vietnam firmly on the map as an investment opportunity and a destination of choice.
This was confirmed at December 2017’s Vietnam Business Forum (VBF), where the prime minister highlighted important changes in the Vietnamese IT industry, featuring the development of automation and artificial intelligence. The forum was told that Vietnam is quickly changing economically, and it is witnessing “a rise in the middle class” which will drive business opportunities. “This is a very important foundation and a big opportunity for potential investors who will find it easier to sell their products and services to Vietnamese customers,” the prime minister told delegates at the meeting. The VBF was also told that Japan will continue its support, especially in the areas of research and productivity.
Additionally, the Vietnam Investment Review said Vietnam is “a good investment destination for foreign firms, and notably as a shining example of the potential benefits of global trade”. Foreign delegates, however, were still requesting greater reform efforts to help create a fairer and more competitive environment where procedures are less complicated. Despite some drawbacks, Vietnam, especially the south continues to attract new business. Projects are receiving investment certificates, including Saigon High Tech Park which has recently granted investment certificates to four new high-tech projects. Business is booming, and Ho Chi Minh City’s Saigon Silicon City project has now been completed and will call for investment in early 2018. The facility is expected to draw 20 ICT projects, valued at around $1.5 billion USD.
For small and medium businesses, it is often hard to know how to get started and not miss out on all these opportunities. There’s no need to start from scratch – it makes sense to engage in a collaborative partnership with a specialist offshore development company based in Vietnam, as they know how to employ talent for your job quickly and efficiently, and without you/your company having to worry about local employment laws and administration.
Having an offshore operation based in Vietnam allows your company to expand and benefit from trade and investment incentives, without the usual overheads. A captive operation is recommended – this keeps the work within your company – it is a model where the staff are legal employees of your company; they are hired by the remote staffing provider, and provide services directly back to you. This model provides a longer-term vision, using cheap but yet skilled labour, and with operations and KPIs remaining under your control.
It makes sense to engage in a collaborative partnership with a specialist offshore development company.