Vietnam tops global outsourcing market for first time: Cushman & Wakefield

Source:Xinhua Published: 2015-3-26 20:59:55

Vietnam has become the world's top outsourcing location for the first time in terms of costs, risks and operational conditions, according to the latest research from global real estate adviser Cushman & Wakefield (C&W).

Vietnam has capitalized on increasing labor costs in China to take the first place in the ranking while India remains the world' s largest business process outsourcing market, state-run Vietnam News Agency (VNA) reported Thursday, quoting the company's research.

Vietnam established its presence in the sector thanks to numerous government reform policies to promote the country as a key outsourcing destination. C&W predicts the service segment will expand rapidly given the average age of the country's workforce is under 30 and 1-1.5 million people enter the labor market every year, said the research.

The software industry has increased rapidly in recent years with over 1,000 operating companies recruiting 80,000 laborers. Vietnam has become one of the world's biggest software exporters and the second biggest outsourcing country for Japan.

The ranking reflects the Vietnamese government's ability to create a stable business environment and introduce policies to improve education quality and professional skills for the younger generation, VNA quoted C&W Vietnam's Director of Valuation and Research Department Jonathan Tizzard as saying.

While Vietnam is not the cheapest outsourcing destination, it is still very competitive globally, said Richard Middleton, C&W's head of occupier services for the Asia-Pacific and the Middle East and Africa, adding that wage increases in India and China have pushed Vietnam to top the rankings in 2015.

Cushman & Wakefield is the world's largest privatelyheld commercial real estate services firm, operating in more than 60 countries and regions. C&W Vietnam was established in 2008 and has offices in capital Hanoi and southern HCM City.

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