Reasons to Conduct Offshore Development in Vietnam

In recent years, Vietnam has increasingly become a popular choice for offshore IT system development. Since our establishment, we have aimed to provide services that match the quality and trustworthiness. In this article, we will discuss the attractiveness of offshore development in Vietnam from our unique perspective.

1 Cost Advantages

The cost of system development in Vietnam is approximately 35% lower than in Japan. This is due to the lower cost of living in Vietnam, which is about 1/2 to 1/3 that of Japan. According to surveys, the salaries of IT personnel in Vietnam are about one-third of those in Japan. In 2024, the average monthly salary for IT engineers in Vietnam is expected to be around $812, compared to about $2,500 in Japan. You will notice a significant cost difference when considering all related expenses on a man-month basis.

2 Abundance of Skilled IT Personnel

The Vietnamese government launched a national DX program in 2020, focusing on talent development with goals set for 2025. About 70% of universities in the country have IT-related faculties, producing over 50,000 IT professionals annually. As a result, the number of IT personnel in Vietnam exceeds 530,000, and the IT industry continues to grow at about 10% per year. There is an increasing amount of new investment from Japanese companies, particularly in the information and communication sectors. Additionally, projects for Japanese companies are becoming more advanced, shifting from mobile and web-based systems to AI and cloud-related projects. Furthermore, private firms are investing in establishing universities and providing practical educational programs aimed at the Japanese market.

3 Geographical and Time Zone Advantages

Vietnam has a time difference of only about 2 hours with Japan. Due to the local culture of early rising, it is feasible to adjust working hours to align with Japanese core hours. This allows for smooth communication with the development base in Vietnam, setting it apart from other countries. The flight time from Tokyo to major cities (Ho Chi Minh City, Da Nang, Hanoi) is about 6 hours, making it easy to visit and hold meetings. This geographical advantage facilitates real-time interactions and smooth project progress.

4 Stable Infrastructure

Vietnam has a well-established infrastructure, with reliable power supply and stable communications. By 2024, the nationwide internet penetration rate is expected to exceed 79%, particularly in urban areas where high-speed internet is accessible. This infrastructure supports smooth development operations.

5 Pro-Foreign Culture

Vietnamese people have a strong affinity for foreign products and culture, showing a high level of respect for other countries. Surveys indicate that Vietnamese have a favorable impression of other countries, enhancing cultural familiarity. This makes collaboration easier and communication more effective. Many employees at our company express a desire to learn from foreign cultures. This strong expectation among our staff to work with customers from all over the world sets us apart from other offshore bases.

Comparison with Other Offshore Development Locations

While China has a long history of offshore development, its costs are about twice those of Vietnam. Labor costs are on the rise, diminishing cost advantages. Additionally, language barriers, cultural differences, and variations in business practices pose significant challenges. India also has a history as an offshore development destination, but its rising costs make Vietnam a more attractive option in terms of cost.

In summary, the significant advantages of Vietnam in terms of cost and cultural compatibility make it an attractive destination for offshore development.

Conclusion

When considering offshore development, Vietnam stands out for its cost-effectiveness, skilled workforce, stable infrastructure, and pro-Japanese culture.

At AIoT, we believe we can be the optimal partner for companies from any countries, offering quality, reliability, and cultural alignment that surpass other offshore locations. We invite you to consider offshore development in Vietnam and trust us with your projects!

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AIoT aims to be a reliable partner that supports your business success by solving challenges in offshore development and building long-term relationships. If you are facing issues with offshore development or are considering a new project, please consult us.

With our extensive experience, high technical capabilities, and rigorous quality management and security measures, we are committed to leading your business to success.

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