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2 years ago, we helped a Singapore-based tech startup set the first stones in building a Tech team in Vietnam. Every comrade of this startup’s founder asked “Have you lost your mind? How can you find good engineers in a developing country like that?”

The facts today have proved that assumption wrong. At Hanoi’s office, a team of 10 engineers and customer success managers is working hard on every two-month release. All of them were recruited in Vietnam.

Hanoi and Ho Chi Minh city, the two economical capitals of Vietnam, are fast becoming a preferred choice to build outsourcing hubs within Asia.

Besides the cost factor, it’s undeniable that there is a growing supply of young, skilled and English-speaking workforce in this Asian country.

From our insights gained from recruitment, collaboration with Tech talents in Vietnam, here under are the 4 Must-Know Facts to start your outsourcing hub:

1/ Job-hopping is the new normal

Job-hopping is common and not considered as disloyal in Vietnam employment market as long as you leave in good terms (finish your duties, notice in advance your quit…). From the employee’s perspective, it is seen as a way to fast-track career opportunities and to negotiate for higher income.

This happens because more and more foreign companies flow in Vietnam to set up their production units or to dig business opportunities up in the local 90 million-people market.

2/ Salaries

When it comes to salary expectations, candidates across the board have a tendency to expect 10% – 30% compared to their actual income. The professional job-hoppers may be greedier and more eager to deal the package, but during the interview, you can easily track their motivation to apply: purely for money or for career advancement.

3 questions to ask:

  • How much is your income now?
  • How much do you expect ?
  • Why do you expect such amount?

Most Vietnamese employees tend to avoid this question, but professional and experienced ones will be direct.

Otherwise, as English-communication skills are not common in Vietnam, the English fluency may justify a huge gap of salaries between the ones who can and the ones who can’t use this language.

3/ The distance between the office and the employee’s address may be a legit reason to refuse the offer

You did not hear it wrong. Unlike to other developed countries, the traffic network in big cities and mid-sized ones is not good enough. Long-hours waiting to pass through the traffic jam, the dusty pollution, the high heat (up to 44 C degrees in summer time) may discourage easily a young employee.

When you wants to set up an office, do not forget to consider this factor. Ideally, the office location should be within 30-minute driving radiation of a “talent pool” (the area where industry-related talents concentrate).

4/ English-first work environment

Though English is taught in state schools and is part of the local education, Vietnamese is still the primary language used in the country. If your business is trying to develop into an English-first environment, it can be both a push or pull factor for a local developer to consider in joining your company. Developers who are not confident or comfortable enough to communicate in English, often tend to shy away from such opportunities. Contrary, there is also a group of candidates who prefer an English-first work environment as a way to improve their grasp of the language.

Be ready to work with professional agency to set up your English-speaking team so you will not waste time for not potential candidates. Also, organizing an English-training class for your employees may be a good idea to retain your Vietnamese employees and transform them into English-favored members.

If you are considering to expand your current tech team or venture into Vietnam, feel free to reach out at info@icts.vn

We are always more than happy to connect and share more information and insights on finding the right people to drive your digital transformation.

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