Vietnam, one of South East Asia's fastest-growing economies, has emerged as a prime destination for global IT outsourcing, especially for Australian financial institutions.
The country's IT outsourcing sector has experienced significant growth, with an annual surge of 13.31%, projected to reach $881.90 million by 2027, according to Kearny's Global Service Location Index.
And as fintech continues to disrupt traditional banking models, this allure of Vietnam's tech prowess has caught the attention of financial entities in Australia, like National Australia Bank Limited (NAB), and ANZ Bank who have established digital hubs in the country. Other international financial institutions like British HSBC and German Deutsche Bank have also established operations in the country.
Boasting a well-developed tech ecosystem, supportive government policies, skilled IT talents, and competitive labour costs, it's no surprise that tech-savvy finance companies are flocking to this vibrant country, entrusting their IT operations to its capable hands.
With a whopping 480,000 IT engineers, Vietnam is a talent powerhouse.
Particularly, the country has placed a strong focus on fintech as it ramps up its digital transformation journey, with significant investments of up to $639 million allocated to this sector. The result? A jaw-dropping 40% growth rate in digital banking and a mind-blowing 249% increase in foreign funding by 2022, according to the Australian Associated Press.
Aside from financial investments, the country has also made notable advancements in its technology ecosystem, climbing seven positions in the government's AI readiness index for 2023, ranking sixth among ASEAN nations and 55th globally.
Another secret ingredient to Vietnam's tech success is its abundant and highly skilled labour force. These tech-savvy individuals have honed their programming skills through early STEM education, propelling Vietnam to the 22nd spot globally in the esteemed Global Skills Index 2020. With a whopping 480,000 IT engineers, Vietnam is a talent powerhouse.
Vietnam has now solidified its position in the global IT outsourcing industry by providing an exceptional environment for international financial organisations to pursue their commercial endeavours.