How To Open A IT Outsourcing Company In Vietnam

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How To Open A New IT Outsourcing Company In Vietnam

In recent years, technological advancements and business innovations have given rise to the new exponential growth of the software outsourcing market in Vietnam. This resulted in the economic, organizational, and industrial transformations of the country, as well as the transformation of entire nations.

Vietnam is a popular destination for companies looking to outsource software development projects because it is one of the world’s key outsourcing hubs, particularly in the ASEAN region, and because of its competitive costs and highly skilled IT workforce.

Many global technology companies, including Samsung, Microsoft, Intel have been actively investing in offshore software development in Vietnam. Other countries with strong IT development have also hired software engineers and developers to work on large projects in Vietnam.

With Vietnam’s affordable workforce and qualified IT talent, there are numerous potential opportunities in the software outsourcing business.

In this article, we will discuss why now is the best time to start a Vietnamese software outsourcing business and how to do so.

Reasons to start a software outsourcing business in Vietnam

1. Human resources available for IT businesses to grow

In the last decade, information technology has become a popular subject in Vietnamese schools. Courses in software development, programming, and coding have been offered not only in public schools, but also in a number of private schools and learning centers.

Vietnamese children begin learning to code at a young age and demonstrate a wide range of abilities in this field.

The quality of education and research in the field of technology and information technology in Vietnam is rapidly improving. International companies are recruiting top-tier software developers from the country due to the country’s high-quality education and vocational training.

2. Competitive labor cost

In comparison to other countries in the region, Vietnam is still known for having a low-cost hiring market. When it comes to IT labor, a software engineer in Vietnam earns only 50-60% of the salary of a similar level engineer in India or Singapore, or 80% of those in Indonesia or Malaysia.

3. Government’s incentives

The Vietnamese government is working hard to bring high-tech from the international market into the country. As a result, it has created favorable conditions for the creation and growth of businesses such as software development.

Among many IT-related industries, software production is being considered for attractive tax breaks from the government, with up to 15 years of tax exemption and reduction.

In Vietnam, forming a company in the IT sector is regarded as the simplest form of business incorporation. That is what we will explain in the following.

Readmore: Cracking the myth: Tax incentives for IT industry in Vietnam

How to open a Software outsourcing company in Vietnam

A software outsourcing company can be owned by a foreigner 100%. The most common business structure in Vietnam is Limited Liability Company (LLC).

To register a software outsourcing company in Vietnam, you will need to go through the following steps

Obtain a business location: Can use a virtual office at the registration step.
Assign a resident director: someone who lives in Vietnam to be the legal representative.
Decide on the capital investment of the company: The law does not specify, most companies start from USD 10,000. The higher the better.

With all prerequisites above made ready, a software outsourcing company will be opened within 45 days by the standard timeframe.

After the company license is obtained, it can start hiring people and signing contracts.

Read more from here: 10 steps to Open a company in Vietnam

Or read more on other business incorporation topics:

VNBG assistance with incorporation

VNBG offers free advice on how to establish an IT company or a software outsourcing company in Vietnam. Our company incorporation is based on providing the best service at the most reasonable price in the market.

We can also walk you through the steps necessary to qualify your software production company for Vietnamese government tax incentives.

We also offer solutions if you are unable to secure your own business address (via our Virtual office service) or a resident director for the company (using our nominee arrangement).