Vietnam has become the world’s top outsourcing location for the firsttime in terms of costs, risks and operational conditions, according tonew research from global real estate adviser Cushman & Wakefield(C&W).
Vietnam has capitalised on increasing labour costsin China to take first place in the ranking while India remains theworld’s largest business process outsourcing market.
Vietnamestablished its presence in the sector thanks to numerous governmentreform policies to promote the country as a key outsourcing destination.C&W predicts the service segment will expand rapidly given theaverage age of the country’s workforce is under 30 and 1-1.5 millionpeople enter the labour market every year.
The softwareindustry has increased rapidly in recent years with over 1,000 operatingcompanies recruiting 80,000 labourers. Vietnam has become one of theworld’s biggest software exporters and the second biggest outsourcingcountry for Japan.
C&W Vietnam’s Director of Valuation andResearch Department Jonathan Tizzard said the ranking reflects theGovernment’s ability to create a stable business environment andintroduce policies to improve education quality and professional skillsfor the younger generation.
Additionally, foreign directinvestment to Vietnam is expected to increase with the signing of theTrans-Pacific-Partnership Agreement, possibly this year or in 2016, andonce the two revised Laws on Housing and Real Estate officially takeeffect in July 2015, making room for foreign investors to operate in thecountry, he added.
C&W’s Head of occupier services for theAsia-Pacific and the Middle East and Africa Richard Middleton said thatwhile Vietnam is not the cheapest outsourcing destination, it isstill very competitive globally.
Wage increases in India and China have pushed Vietnam to top the rankings in 2015, he added.-VNA
Vietnam has capitalised on increasing labour costsin China to take first place in the ranking while India remains theworld’s largest business process outsourcing market.
Vietnamestablished its presence in the sector thanks to numerous governmentreform policies to promote the country as a key outsourcing destination.C&W predicts the service segment will expand rapidly given theaverage age of the country’s workforce is under 30 and 1-1.5 millionpeople enter the labour market every year.
The softwareindustry has increased rapidly in recent years with over 1,000 operatingcompanies recruiting 80,000 labourers. Vietnam has become one of theworld’s biggest software exporters and the second biggest outsourcingcountry for Japan.
C&W Vietnam’s Director of Valuation andResearch Department Jonathan Tizzard said the ranking reflects theGovernment’s ability to create a stable business environment andintroduce policies to improve education quality and professional skillsfor the younger generation.
Additionally, foreign directinvestment to Vietnam is expected to increase with the signing of theTrans-Pacific-Partnership Agreement, possibly this year or in 2016, andonce the two revised Laws on Housing and Real Estate officially takeeffect in July 2015, making room for foreign investors to operate in thecountry, he added.
C&W’s Head of occupier services for theAsia-Pacific and the Middle East and Africa Richard Middleton said thatwhile Vietnam is not the cheapest outsourcing destination, it isstill very competitive globally.
Wage increases in India and China have pushed Vietnam to top the rankings in 2015, he added.-VNA
