Ho Chi Minh City (HCMC) originally Saigon, and still known to many by that name, is home to over 8.5 million people, the most populated city in Vietnam. Ho Chi Minh city is Vietnam’s commercial hub where most national and international businesses have their largest presence. HCMC is predicted to achieve 8% annual growth over the next five years making it the fastest growing city in Southeast Asia. This is a city of high potential and is regarded as having a low cost and low risk business environment. This is recognised by the high levels of recent foreign investment, over US$2.15 billion in the first half of this year according to official Ministry of Finance reports.
The transition from traditional industries such as textiles and manufacturing, to a hi-tech and highly skilled industry base over the last few years is evident by the existence of hi-tech industrial parks such as Quang Trung Software City (QTSC). QTSC has many functions including software production. It has its own exhibition center, accommodation and entertainment area. Established at the turn of the century it is now the 3rd largest of its type in Asia. The park is projected to have over 20,000, studying and living there by 2020. QTSC has strong support from the Vietnamese governments which provides many benefits and incentives to encourage and assist the continued development of the IT industry. Another of these zones is, Saigon Hi-Tech Park (SHTP) also established in the early 2000's, which is in close proximity to the city's centre and airport. Saigon Silicon City is an ambitious project aimed at turning HCMC into a major tech hub. It is being built in the Saigon Hi-Tech Park, which is already home to 46 tech businesses including giants such as Intel and Samsung. These parks exemplify the massive progress the city is making in making HCMC the Silicon Valley of Asia.
As well as the economic and industrial benefits of Ho Chi Minh City, the city is also famous for its pleasant climate it doesn’t suffer from natural disasters, such as typhoon’s or earthquakes, unlike other popular offshoring/outsourcing destinations, like the Philippines, where the environment can cause downtime and costly delays.
Vietnam’s technical competency, retention rates have contributed greatly to global business confidence in HCMC. Vietnam has a stable working environment and low attrition rates that sit between 6 and 8 percent for IT and outsourcing compare favourably to India, where attrition rates regularly climb beyond 20 percent, which is drives wages higher.
Cultural and political factors can also play a part. Vietnam's population is 95% ethnically Vietnamese and more than 80% of the citizens do not identify themselves with any particular religion. In the Philippines or India you will have to develop an understanding of their deeply rooted spiritual beliefs the dates of which may conflict with your work schedule. Vietnam's current government has been in place for more than 30 years and there have been little or no conflicts externally or internally during that time. This compares well with both the Philippines and India that have been affected by political turmoil in recent times.
HCMC's future looks very bright and assured. The city has many challenges, but it is in a good position to achieve the desired results. For business it is an opportunity to be involved in the transformation of a young vibrant economy perfectly situated geographically as a hub for the growing economic region of Southeast Asia. HCMC has an expanding and willing workforce hungry and eager for success. Vietnam is poised to become Asia’s next economic tiger and like South Korea, Taiwan and China before it, the country is piecing together the right mix for rapid, sustainable growth, with HCMC at the very heart of that revolution.
