The Appeal of Offshore Development in Vietnam

1. What is offshore development?

　To understand Vietnam's appeal for offshore development, you first need to understand what offshore development is.

1.1. Outsourcing development work overseas

Offshore development means outsourcing work to IT companies in countries with lower labor costs than Japan, cutting the biggest cost driver to build high-quality systems or apps at a lower price. Benefits aren't limited to cost, either: work proceeds simultaneously between the partner country and Japan, shortening development time while giving access to talented engineers overseas.

1.2. Countries that receive offshore development work

Many countries take on offshore development work. It began with outsourcing to India, which had low labor costs and a strong pool of IT talent. China, also cheaper than Japan and closely tied economically, was another popular destination.

As labor costs in India and China have risen, however, Southeast Asian countries with lower costs are now drawing attention — Vietnam most of all. Vietnam offers advantages that other Southeast Asian countries don't, which is exactly what has made it so popular.

2. Three reasons Vietnam is chosen for offshore development

　Vietnam is a country that pairs exceptionally well with Japan for offshore development. Here we introduce the strengths Vietnam has that other Southeast Asian countries don't.

2.1. [Political stability]

Vietnam's political stability was strong enough to bring the COVID pandemic under control early on. This stability also means high public satisfaction and a reliable labor market.

Vietnam is also close to Japan, with only a two-hour time difference, so working hours barely differ — enabling real-time communication and efficient development.

2.2. [A nationwide effort to produce skilled IT talent]

When outsourcing offshore work, the partner's technical capability is a key concern. Vietnam's software industry has a short history, but the country has taken a nationwide approach to producing skilled IT talent — institutions like Hanoi University of Science and Technology offer specialized education, and the government supports IT careers for engineering graduates.

Thanks to these policies, the number of engineers in Vietnam keeps growing significantly. Japan, meanwhile, is expected to face a growing IT talent shortage. Securing skilled Vietnamese engineers through offshore development can help address this — another reason Vietnam is so popular.

Working styles also differ by country. In Vietnam, as in Japan, it's common to start work early, so communication happens on a similar rhythm — and close communication is the key to offshore success. That's exactly why Vietnam pairs so well with Japan.

2.3. [A pro-Japan, earnest character]

The character of the Vietnamese people is another reason Vietnam is chosen. It's one of the most pro-Japan countries, with well-established Japanese-language education and study-abroad programs, so communication throughout development tends to go smoothly. The Vietnamese are also known for being earnest and hardworking, with a working style much like Japan's — making this compatibility another reason Vietnam is chosen as an offshore partner.

3. For offshore development in Vietnam, choose Miichisoft

　In offshore development, compatibility with the outsourcing country matters a great deal. Vietnam stands out well above other countries in this regard.

By carrying out system development in Vietnam, Miichisoft keeps costs down while maintaining high quality. If you want high-quality system development at a low cost, or want to secure talented IT engineers, please feel free to reach out to Miichisoft.