Ho Chi Minh City Attracting High Foreign Investment
Vietnam is now one of the most popular offshoring locations in the world, and its biggest city, Ho Chi Minh, is the main centre for offshore staffing solutions.
Vietnam is now one of the most popular offshoring locations in the world, and its biggest city, Ho Chi Minh, is the main centre for offshore staffing solutions. A growing number of multinational corporations are recognising the benefits of this relatively new and fast-developing location. In the first 10 months of 2017, Vietnam attracted around US$14.2 billion in foreign investment, and Ho Chi Minh City attracted the highest amount of US$5.03 billion*.
Ho Chi Minh City is the economic centre of Vietnam.
The city contributes about 20 percent of Vietnam’s GDP, 30 percent of its industrial production, and 30 percent of the state budget revenue*. It’s a city with an appetite for success and an interest in new and exciting developments. Ho Chi Minh is a modern city of high rise office towers, fast-growing infrastructure projects, and fashion-conscious teens and adults who own the latest mobile technology.
Many young Vietnamese aspire to work for well-known brands, such as Unilever, Intel, and Samsung. In fact, Samsung is Vietnam’s biggest exporter, with its products accounting for 18 percent of Vietnam’s exports in 2015, and almost 23 percent in 2016. Of its 140,000 employees, only 190 are specialists from South Korea, and the remaining positions are comprised of local Vietnamese workers. Samsung’s Ho Chi Minh City factory is located in Hi-Tech Park, one of the city’s three dedicated IT and software special development zones. Ho Chi Minh’s industrial parks are located near highways that link to the airport, and they also have easy access to Vietnam’s largest seaport in the city’s south.
Intel is another multinational located in Ho Chi Minh City, and it is a company giving back to Vietnam through educational initiatives such as engineering scholarships and partnering with schools. Intel’s investment in Vietnamese education enables students to go beyond the traditional classroom to learn coding and other specialised IT skills, preparing them for jobs that haven’t even been created yet!**
Looking to the future, Vietnam is the best location for your outsourcing needs.
In the third quarter of 2017, Vietnam’s economic growth surged by 7.46 percent, the highest in the last seven years*. But unless you are a multinational, like Samsung or Intel, doing business in Vietnam can be quite complex. Going through a company such as Remote Resources will make things easy for you, and, as we are based in Vietnam we will be able to cut through the red tape and quickly hire remote workers with the skills you need. Vietnam provides a major investment opportunity in talent, with high-quality output for comparatively low staff wages. Our Remote Resources office is based in Ho Chi Minh City, and we can find you a dedicated offshore team for short or long-term projects.
The Vietnam Institute for Economic and Policy Research (2017) reports that the Vietnamese Government will continue to focus on technology and innovation in the short, medium and long-term. So, all indicators look to a secure future in Vietnam as an offshoring destination for IT, game development, mobile applications, web design, technical support, and more. With companies such as Intel committing to investing in ICT education, students can learn using state-of-the-art technology, and the upcoming workforce will have the skills to constantly meet market demands.
*Ref: Vietnam business intelligence
** Ref; Intel website
Offshoring staffing initiatives can be expanded to accommodate the talent available in Vietnam, and team leaders will likely have equivalent qualifications to on-shore staff. Ho Chi Minh City leads the way in producing skilled workers, with 38 university campuses in the city, including the University of Information Technology, which offers degrees in information systems, information security, software engineering, digital media, and more.