Technology advancements and business innovations have given rise to the new exponential growth of the software outsourcing market in Vietnam in recent years. This led to the transformation of the country’s economy, organisations, industries, and entire nations.
As one of the key outsourcing hubs across the globe, especially the ASEAN region, alongside competitive costs and highly-skilled IT workforce, Vietnam is the favourite destination for companies to outsource their software development projects.
Many global tech companies such as Samsung, Microsoft, Intel, Bosch, and IBM have been continuously and actively investing in Vietnam software outsourcing industry. Other countries with great IT developments have also recruited software engineers and developers to participate in their big projects in Vietnam.
Vietnam’s Foreign Investment Agency reported that the Vietnam software outsourcing market has brought in more than US$35 billion investment capital and over 3,000 foreign direct investment projects in 2018.
With Vietnam’s workforce affordability and qualified IT talents, there are many potential opportunities present in the software outsourcing business.
In this article, we will focus on why this is the best time for you to start a Vietnam software outsourcing business, and how you can do that.
Why You Need to Start a Software Outsourcing Business in Vietnam
1. Quality Education in Technical and IT Fields
The quality of education and research related to the technology and information technology field in Vietnam is improving tremendously. High-quality education and vocational training are why international companies are recruiting top-notch software developers from the country.
2. Young, Talented, and Affordable Workforce
Unlike many countries that are currently going through population aging and talent shortage issues, Vietnam’s young population has one of the highest percentages in the country.
These young people don’t just provide labour anymore, they are highly skilled IT talents that can help boost the software development and outsourcing scene further.
3. Governmental Reform and Support
The support and reform policies from the government have made foreign investments and doing business in Vietnam less challenging.
In 2019, Vietnam was ranked 69th of the ease of doing business, out of 190 countries. Many IT enterprises and corporations have found obtaining enterprise certificates and investment certificates becomes easier.
4. Well-developed Technologies and Infrastructures
Vietnam constantly keeps up the pace of the latest technological advancements around the world. Even the Vietnamese tech professionals are continually updated with these newest innovations such as machine learning, blockchain, artificial intelligence, data science, and many others.
How to Start a Software Outsourcing Business in Vietnam
Foreigners can start a software outsourcing business in Vietnam with full foreign ownership. In a 100% foreign-owned company, there must be at least one resident director.
A foreigner can be the owner of the business, but if the foreigner doesn’t reside in Vietnam, they can’t be the director and must appoint someone who is a resident.
Additional requirements to start a Vietnam software outsourcing business:
- No set minimum capital requirement. However, the planned capital must be realistic and reasonable according to the business plan
- US$130,000 minimum capital if the founder and their dependents want to get a resident card
- Responsible for corporate income tax at 20%
Consult with Cekindo
Cekindo offers easy, reliable Vietnam software outsourcing company registration for both locals and foreigners. There are many types of legal entities and we can help you navigate through the confusion. We will advise you on the correct corporate structure you need to put in place to succeed in the long run.
We are experts in our fields with decades of combined expertise. We have helped shape the industry by providing innovative business services that have evolved alongside the requirements of our clients.
Join the thousands of companies now that have already started their businesses in Vietnam without the hassle. Rest assured that you are backed with the support you need from Cekindo to succeed.
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