OK, we admit it – you could translate the above headline as “the Vietnamese have probably known this for ages but it’s only just been drawn to our attention…” – but there’s suddenly an excellent piece on Forbes from its technology council about Vietnam’s place in the business process outsourcing (BPO) market.
Significantly, it places emphasis onto the apparent decline of India as a hotspot although we have to be fair and say this is only part of the story. Numbers of people employed in BPO are falling in India by all means, but at a time in which robotic process automation (RPA) is in the ascendant and sheer headcount is becoming a liability rather than an asset, this is not necessarily a sign of difficulties.
Nonetheless the circumstances for Vietnam are positive. The government there, in common with many others, has put technology as a central plank of its industrial policy and has incentives in place, plus it’s been encouraging education in the STEM subjects. The culture has been adaptive to change but it still includes a ferocious loyalty to employers; this is going to go down well with any inward investor.
Growth in the sector is healthy and as it doesn’t have the same installed base of people that India carries, it isn’t likely to be hit by the incoming wave of RPA to the same extent. We predict that this is going to be one to watch.