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Vietnam: The Ideal Destination for Building Financial Digital Hubs.
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Vietnam has solidified its position in the global IT outsourcing industry, renowned for its favorable factors in socioeconomics, tech infrastructure, talents, and labour costs. Its growing reputation attracts tech-incentive finance companies to entrust their IT operations to the country.
Vietnam’s IT outsourcing sector has surged at 13.31% annually, poised to reach $881.90M by 2027. Kearny’s Global Service Location Index ranks Vietnam among the top 6 best locations for IT outsourcing, citing its favourable business environment, strong technology ecosystem, availability of a highly skilled IT workforce, and cost efficiency. This makes it a perfect choice for global enterprises, including Australian entrepreneurs, looking to establish digital hubs for software development, data analytics, and digital testing.
Vietnam’s high-octane economy, with a strong focus on fintech, has invested $639M in digital transformation, resulting in a 40% digital banking growth rate and a remarkable 249% increase in foreign funding by 2022.
The country has also made significant strides in the technology ecosystem, climbing 7 positions in the government's AI readiness index for 2023, ranking 6th among ASEAN nations and 55th globally. The government’s establishment of the National Innovation Center (NIC) further highlights its commitment to fostering technological breakthroughs.
Vietnam’s tech infrastructure thrives on its abundant and highly-skilled labour supply. With solid programming skills nurtured through early STEM education, Vietnam ranked 22nd globally in the Global Skills Index 2020, encompassing 480,000 IT engineers. Complemented by their proficient English, adaptability, and eagerness to learn, Vietnam’s tech talent is an excellent choice for companies seeking to fuel innovation.
Another significant advantage of Vietnam’s tech workforce is its competitive labour costs compared to other offshoring locations. This allows businesses to leverage Vietnam’s talent pool to fulfill immediate and long-term strategic initiatives while maintaining cost-efficiency.
All these factors position Vietnam as the rising star within the global IT industry, attracting numerous financial institutions like ANZ Bank, HSBC, Deutsche Bank, NAB, and more to establish digital hubs there.
Notably, NAB, Australia's largest business bank, established the NAB Innovation Centre Vietnam (NICV) in 2019 to deliver great technology and improve the customer experience for its 8 million customers. During the past four years, the NICV has expanded rapidly with three offices open across HCMC and Hanoi, employing hundreds of skilled professionals in various tech roles. Working in collaboration with NAB’s Australian team, the NICV emphasizes on digital transformation initiatives like the upcoming release of AUDN - a stablecoin that enables real-time blockchain-based using Australian dollars.
Successful IT outsourcing in financial services requires collaboration with competent IT providers who demonstrate extensive technical BFSI domain skills, robust governance, and delivery processes, backed by a proven track record. To find such IT vendors, platforms like Clutch or GoodFirms, along with top IT services rankings in Vietnam provide a convenient starting point. These resources offer insights into the vendor’s services, ratings, testimonial and more.
KMS Solutions, with its 14 years of experience in the IT industry, is well-equipped to assist financial institutions in establishing efficient offshore technology centers in Vietnam. The company's extensive track record includes successful digital transformations for renowned companies such as Prudential, Paidy, and Bill Identity, Discovermarket and more. This expertise ensures that KMS Solutions possesses the necessary knowledge and capabilities to handle the complexities of financial technology operations.
Additionally, their experience in incubating and launching three software products further showcases their proficiency in handling and operating IT solutions. With KMS Solutions as a partner, financial institutions can rely on their expertise to establish and manage effective offshore technology centers in Vietnam, thereby maximizing their operational efficiency and staying at the forefront of the ever-evolving financial landscape.