The globalized world offers new opportunities for companies as technology bridges distances and communication gaps, fostering efficiency. Outsourcing has emerged as a highly profitable business model, allowing companies to excel in efficiency and cost. Success hinges on finding reliable outsourcing partners.

1. Where Kaopiz's From: Vietnam

Vietnam and ASEAN

ASEAN was established in 1967 by the Philippines, Indonesia, Malaysia, Singapore, and Thailand. The purpose of ASEAN is to promote political and economic cooperation, as well as regional stability and development. Vietnam became the seventh member on July 28, 1995. JP Morgan Chase has described ASEAN as an emerging hotspot, predicting it will become the fourth-largest economic bloc in the world, following the EU, the United States, and China, by 2030. The combined population of all member states is about 643 million, with a nominal GDP of approximately $2.8 trillion, making it a substantial economic area. According to FocusEconomics, a growth rate of 4.9% is expected in 2018.

According to the Asian Development Bank, Vietnam recorded an average GDP growth rate of 5.9% from 2011 to 2015. Trading Economics states that using their long-term economic model, the GDP growth rate is projected to rise to 6.2% by 2020. Remarkably, in the first decade of the 21st century, Vietnam's growth was second only to China.

Investing in Vietnam offers access to a market with significant future potential, potentially opening up new opportunities.

Infrastructure in Vietnam

One of the concerns when doing business in Vietnam has been the loss of IP addresses or ID/password information, as well as the lack of high-quality infrastructure, such as power outages and unpaved roads. However, this has changed significantly over the past decade. In 2006, Intel invested $300 million, and within a year, that investment had increased to $1 billion. Since then, with ongoing foreign investments, Vietnam became a lower-middle-income country by 2010. Vietnam now aims to become a middle-income country and a modern industrial nation by 2020. An infrastructure budget of $48 billion has been allocated from 2016 to 2020, which is expected to ensure continuous economic growth and promote foreign investment in infrastructure projects.

The IT sector in Vietnam has also undergone significant changes. Broadband connectivity and stable internet services have developed, leading to industry growth and making information technology more accessible. With 95% of the population aged 15 to 24 using the internet, it is clear that the Vietnamese are tech-savvy. According to Internet World Stats, over 49 million people in Vietnam use the internet, with 40 million Facebook accounts registered, a number that is expected to continue growing.

2. Offshore Development in Vietnam

What is Offshore Development? In recent years, Japan has seen a rising demand for IT talent, which supply cannot meet. One solution to this issue is offshore development, which involves contracting overseas companies or subsidiaries for the development of information systems, software, and web systems. By outsourcing to foreign vendors, companies can reduce costs due to lower labor expenses. In 2010, Vietnam ranked in the top 30 countries for offshore development according to Gartner, leading to stable growth alongside existing industries and new investments.

High Demand for IT Talent Vietnam's IT industry is experiencing unprecedented demand, particularly for experienced software developers and managers. A 2016 survey by VietnamWorks revealed that 81% of IT companies planned wage increases of 6% to 20% in 2017. The number of technical positions has more than doubled since 2014, with an expected need for over 40,000 engineers by the end of 2018. As a result, wages are rising, and many companies are offering bonuses to retain employees.

Cost-Effective Development Vietnam's competitive pricing remains a significant advantage in offshore development. In 2016, it ranked fifth among the world's most financially attractive markets for offshore development, following India and Indonesia. Vietnamese engineers earn lower salaries compared to their peers in other Asian countries, making the cost-performance ratio appealing for Japanese companies, which could save up to 80% on expenses by collaborating with Vietnamese IT partners. Tax incentives also contribute to Vietnam's cost-effectiveness, with the corporate income tax decreasing from 25% to 20% in recent years.

A Talent Pool in Vietnam With a population of about 96 million, over half of whom are under 30, Vietnam offers a wealth of talent. The government reports that approximately 30,000 new graduates enter the IT sector each year. The strong emphasis on education, especially in computer science and language skills, ensures a pool of skilled, young engineers.

Vietnam’s Presence in Japan’s IT Industry Vietnam has become the second-largest outsourcing destination for Japan's software development, surpassing China. According to JETRO, over ten Vietnamese software companies have recently entered the Japanese market. The Vietnamese IT sector is growing at a steady rate of 20% to 40% annually, with government support contributing to an increase in revenue, reaching $49.5 billion in 2015.

3. Why Choose Kaopiz?

Vietnamese Engineers’ Expertise
Our engineers hail from prestigious institutions like Hanoi University of Science and Technology, specializing in ICT. They are proficient in various programming languages and platforms, including Java, C#, Swift, Kotlin, PHP, and JavaScript. Weekly study sessions foster collaboration and deepen understanding among engineers, ensuring high quality in our work. All engineers are proficient in English, with many also speaking Japanese. Kaopiz emphasizes Japanese language training to facilitate direct communication without intermediaries.

Skilled Bridge System Engineers (BrSE)
BrSEs act as liaisons between clients and our development team. They possess not only IT skills but also a deep understanding of the languages and cultures involved, enabling smooth operations. Our BrSEs have studied or worked in Japan, ensuring familiarity with Japanese work practices. All BrSEs hold at least N2 certification in Japanese, allowing for seamless communication. Some also serve as project managers, and they regularly engage in management training sessions.

Quality and Security
At Kaopiz, we implement WBS and PERT methodologies, adhering to Japanese quality standards. Eight of our team members hold PMP (Project Management Professional) certifications, which guide effective organizational development tailored to project needs. We achieved ISO 9001:2015 certification in October 2017, followed by ISO 27001:2013 certification in October 2018, focusing on quality stabilization and security training for all employees. Our office is equipped with biometric security systems and surveillance cameras to ensure 24/7 safety. Additionally, we have received ISTQB Gold Partner recognition and AWS Partner Network (APN) Consulting Partner certification, affirming our commitment to technical excellence and service improvement.

If you’re interested in Kaopiz, please don’t hesitate to reach out. We look forward to supporting your software development needs from Vietnam!