Vietnam to be a new attractive destination in BPO field
Developing Business Process Outsourcing (BPO) or Information Technology Outsourcing (ITO) is a new way for Vietnam software with criteria on quantity.
This service includes all of works relating to IT applications from the simplest ones such as image processing, data entry, document digitisation… to more complex ones like financial accounting, customer services.
According to Hieu Le, Senior Head of Industrial and Logistics Division of CBRE Vietnam, when labour cost and other business costs in the US and Europe are increasing and having no signals to stop in the near future, corporations opt to outsource many operating arrays in third world countries to cut down costs, especially in Asia where abundant skilled human resources arevailable at low cost.
In Asia, India and the Philippines account for major proportion. However, Vietnam now is arising as a potential destination with government’s strong policies to encourage investment in this field including preferential policies on corporate income tax equivalent to high technology as well as considering incentive reduction on personal income tax for employees working in this field.
Nevertheless, Vietnam still has some challenges to multinational corporations when investing in BPO and ITO such as low scale human resources, cross labour hiring creating cost increase and barriers to a deep market development, complicated and cumbersome legal basis and encouraging policies’ adjustments like decision to quit incentives for manufacturing projects in industrial zones in 2009.
