Business process outsourcing (BPO) is supposed to be one of the leading sectors with the greatest potential for growth and investment in Vietnam in the near future. With the continued growth of digital connectivity and market demands, there is plenty of room to develop the BPO services. Vietnam’s geographical location, young and abundant workforce, and stable government committed to economic growth all create fitting conditions to develop BPO.
With the aim to boost technology and education investments, government incentive policies have recently been released, Vietnam is steadily transitioning from a low-cost manufacturing destination to an outsourcing centre for business services requiring talented and high-skilled human resources.
As BPO is a promising sector to attract foreign investment customers and business partners, it could bring good value to Vietnam.
Nowadays, more and more international companies are concentrating on their core businesses and outsourcing at least some of their non-core businesses. Meanwhile, local companies, particularly those in the financial sector, are also looking to outsource data processing and/or their support services.
BPO is fraught with risks and businesses make thorough considerations before using these services. BPO clients usually screen their service providers based on several factors, including the ability to meet security and quality standards, system availability, continuity in performing the services, and ability to innovate and provide new services.
To swiftly seize the opportunities, Vietnamese BPO providers need to transform and improve their quality and services. They need to focus on developing mid- and high-end services, or their basic outsourcing jobs will be replaced by smart and automated applications and artificial intelligence.
BPO services in Vietnam hold many competitive advantages and are following a similar growth trajectory to India’s and the Philippines’. Continued engagement in large markets such as Japan and China will bring significant foreign investment to boost the development of high-tech outsourcing in Vietnam. Nevertheless, for further advancement in these services, BPO providers in Vietnam need to transform by innovation to meet the ever-increasing demands of the market.