By Cushman & Wakefield’s Global Outsourcing Location Index, in 2016, Vietnam was progressively ranked the first top of manufacturing location in the world) for the first time. That helps to attracts many investments from many giant technology companies in the world like Intel, Samsung, LG, and Microsoft, etc.
By that way, according to services globalization and investment advisory firm Tholons, Ho Chi Minh and Hanoi were among the top 30 outsourcing destinations in the world,
In 2014, HCM City ranked 17th on Tholons' list, while Hanoi ranked 21th
Here's a look at the top 30:
1. Bangalore, India
2. Metro Manila, Philippines
3. Mumbai, India
4. Delhi, India
5. Chennai, India
6. Hyderabad, India
7. Pune, India
8. Cebu City, Philippines
9. Krakow, Poland
10. Dublin, Ireland
11. Shanghai, China
12. Beijing, China
13. San Jose, Costa Rica
14. Dalian, China
15. Shenzhen, China
16. Prague, Czech Republic
17. Ho Chi Minh, Vietnam
18. Kuala Lumpur, Malaysia
19. Colombo, Sri Lanka
20. Sao Paulo, Brazil
21. Hanoi, Vietnam
23. Chandigarh, India
24. Santiago, Chile
25. Kolkata, India
26. Budapest, Hungary
27. Curitiba, Brazil
28. Buenos Aires, Argentina
29. Brno, Czech Republic
30. Singapore
HCM City was ranked the 17th, while Hanoi was at 22st. If compared with the last report, Hanoi remains at the same position, while HCM City has fallen by one grade. However, if compared with 2009, Hanoi has fallen sharply from the 10th to 21st and HCM City from the 5th to 17th.
In 2015, HCM City has gone down one position, however, Hanoi was able to get higher 20th position from the 22th in the previous year.
Even though HCM City has fallen by one grade from last year, HCM City is still considered a destination with great potentials, which can be the alternative choice for foreign companies, once the software outsourcing costs in China have been increasing.
By the research report, it also said that some cities in the countries with large population such as India and China will maintain competitive advantage and other countries cannot counter since it has the best potential to offer scale, labor costs and a wider array of outsourced services. However, the advantage is not always exclusive to such big cities. The city such as Ho Chi Minh City, Vietnam, smaller in population but HCMC has made inroads in high-value ITO and engineering services.Tholons still believes that in South East Asia, Vietnam remains one of the biggest ITO (information technology service outsourcing) providers which can replace India and China in the field.
That’s reason why according to Gartner, Vietnam is always among the top 10 IT outsourcing countries in the Asia – Pacific region
To be continued…
By Thuy Le