Vietnam: An Alternative to Traditional Offshore Locations

Many companies immediately think of the Philippines or India when considering offshore destinations for call center and business process outsourcing (BPO) operations. However, several countries within the Asia-Pacific region offer compelling alternatives that are often overlooked. One of the most notable is Vietnam.

With a population exceeding 100 million people, similar in scale to the Philippines, Vietnam offers a large and growing labor pool to support customer service and BPO operations. The country stretches more than 1,000 miles from north to south and features five major metropolitan areas and approximately 20 cities with populations greater than 1 million.  

The workforce can support both English and Asian languages, labor costs remain competitive relative to many regional hubs, and it has a reputation for safety. In addition, Vietnam benefits from direct flight connectivity to major cities across Asia-Pacific, Europe, and even the United States, making it accessible for multinational operations.    

Site Selection Group has evaluated Vietnam on numerous occasions for both traditional site selection and vendor evaluation projects, working closely with new market entrants as well as established operators seeking expansion opportunities. Based on this experience, we believe Vietnam is well-positioned for continued growth.

Key Advantages of Vietnam for BPO Operations

1. Multiple Metro Areas and Population Hubs

Vietnam has five major population hubs: Ho Chi Minh City, Hanoi, Hai Phong, Da Nang, and Can Tho in the Mekong River Delta. Each offers unique advantages for BPO and call center operations. Ho Chi Minh City is the largest and most mature outsourcing hub, while Da Nang supports IT services. The Mekong River Delta region is emerging, with Can Tho located roughly three hours from Ho Chi Minh City. 

2. Cost-Competitive 

Wages for entry-level call center agents remain affordable relative to other offshore markets and are lower than those in the developed cities in the Philippines and India.

3. Language Support

Vietnam offers solid English proficiency, particularly among recent university graduates. Japanese language support is strong and growing, followed by Korean. Chinese and several European languages are available, though typically at a smaller scale compared to English and Japanese.

4. Safety and Security

The U.S. travel advisory for Vietnam is Level 1, the safest classification. The country also scores favorably on global safety indices, including measures of terrorism risk, crime levels, security, and overall quality of life.

5. Flight Accessibility

Vietnam offers nonstop flight service on multiple airlines to nearly 100 destinations across the Asia-Pacific region, Europe, and the United States.

Trends Driving Growth in 2026

• Mid-Market Growth: Vietnam is seeing increased interest from mid-sized brands seeking offshore capacity without the saturation of larger APAC markets.
• Return to Office: Onsite and hybrid models remain prevalent, particularly for banking and insurance services, supported by Vietnam’s strong in-office workplace culture.
• Focus on Customer Retention and Technical Support: The most successful programs in Vietnam focus on customer retention and technical support and combine voice and chat, e-commerce, and digital, back-office processing.

Risks and Considerations

While the fundamentals are strong, companies evaluating Vietnam should consider: 

• Market Maturity: The market is less mature than India and the Philippines, which can limit vendor options at scale. 
• Communist Government: Vietnam operates under a single-party communist system where the government maintains significant control over executive power and civil liberties.  
• Concentration Risk: Most activity is centered in and around Ho Chi Minh City, followed by Hanoi. The secondary markets are growing, but may limit ability to scale.

SSG in Vietnam: Strategic Insights, Local Execution

Site Selection Group has guided global clients through BPO strategy development and implementation in Vietnam. Our services include labor cost and availability modeling, real estate and utility due diligence, vendor selection and benchmarking, and incentive negotiation and implementation

With the right strategy and execution, Vietnam offers a compelling offshore solution for brands seeking bilingual talent, cost efficiency, and proximity to Asian markets.

Contact us to learn how we can help you explore opportunities in Vietnam in 2026 and beyond.