LTS QA

 

South-East Asia has recently gained the reputation of an emerging technology hub. This region is not only the home of many tech unicorns but also a destination for multiple outsourcing services. Among these services, Vietnam software outsourcing stands out as the must-try solution for any business looking for top-notch IT outsourcing services. With the competitive price tops off the list, Vietnam also offers a proficient talent pool, stronger economic potentials, and a more competitive market.

When talking about Vietnam, people often link the country to the picture of a dynamic market and growing industrial development or war-torn history. But with the recent success and new orientation towards the growth of information technology, software development in Vietnam has successfully gained the trust of international clients.

 

 

1. Vietnam software outsourcing holds great potentials and a strong foundation

Vietnam is located at the heart of Southeast Asia, in GMT+7, which is 12 hours ahead of the US, 7 hours ahead of the UK, 3 hours behind of Australia, 2 hours behind of Japan and Korea. Vietnam’s economy is forecast to grow by about 4.8 percent in 2021: WB. More specifically, as of June 20, 2021, foreign investment projects (FDI) were estimated to disburse US$9.24 billion, an increase of 6.8 percent compared to the same period in 2020.

Vietnam is developing steadily despite the recent outburst of the COVID – 19 Delta variant. And one of the booming industries is Vietnam software outsourcing.

 

Vietnam is thriving in the ICT industry, especially with software export

Since the rise of IT outsourcing services about 15 years ago, Vietnam software outsourcing has always been a hidden gem for businesses to apply technology. In fact, in recent years, Vietnam has proven its capabilities as Japan’s second-largest partner in terms of software development and service outsourcing from 2014 to present.

 

 

According to 2021’s Global Services Location Index, Vietnam emerged as a new digital hub as we ranked the 6th with 4 main categories: financial attractiveness, people skills & availability, business environment and digital resonance. Vietnam also ranked 9th in Tholon’s Top 50 Digital Nations. From an obsolete country with barely any technological advancements 20 years ago, Vietnam has spurred rapid digital transformation to the point that our ICT businesses not only provide services to the domestic market but also export a great deal of software and other solutions. This development is proven through the following number:

• The total ICT export is reported to be $91.5B, bringing $3.5B of software export turnover. This number is predicted to grow at least 5% in 2021.
• The software & IT services accounted for $11.0B (according to a report of Vietnam Software and IT Services Association).

Since 2016, Vietnam’s been describes as “South East Asia’s Silicon Valley”, predicting a booming digital economy in the years coming. This exponential development will be taken to another level as the government has stepped in to form legal frameworks and initiatives, and put focus on IT sector’s growth.

With these impressive achievements through the hardest time amidst the pandemic and experiences working with the most demanding clients in the world, Vietnam is becoming more and more favored in the world’s software outsourcing market.

 

Vietnam’s IT Market Growth Index

According to the Ministry of Information and Communications’ 2019 summary and 2020 orientation report, total ICT industry revenue in 2019 is estimated at $112,350B, including 81.5% for ICT export.

2020 marked the first year that Vietnam officially announced its focus on developing digital technology businesses, the “Make in Vietnam” strategy. The number of digital technology businesses has since increased by 28%, reaching nearly 60,000 companies.

Vietnam’s digital technology businesses will concentrate on 12 key areas such as E-commerce, Fintech, Ride/food order, Edtech, Healthcare, AI, Machine Learning, Blockchain, etc. With this concentration aligning with the world’s trends, Vietnam’s capabilities can meet the demands of the world, particularly of the businesses looking for IT outsourcing services.

 

You may interest:Top IT Outsourcing Company in Vietnam

 

2. Plentiful IT Human Resource

Vietnam has to face the talent shortage problem like many other nations in the world, but the current number of IT workers shows a prominent outlook for the development of the whole industry. The numbers can speak for themselves:

• Currently, Vietnam has approximately 400,000 IT engineers working in multiple fields.
• There are about 50,000 students who graduate from training institutions annually.
• About 53% of the IT workforce have from 1 – 3 years of experience. Interesting enough, although they have just a few years of experience, many Vietnamese tech engineers have the level of Senior / Lead expertise.

Through these numbers, Vietnam is proven to have a sufficient talent pool to meet the demand on IT engineers.

 

 

Resonating with the current trends of the world, Vietnamese IT engineers focus on some of the most popular technologies, including:

• For Frameworks/Library: Laravel (49.6%), NodeJS (36.4%), React (27.9%)
• For Database: MySQL (59.1%), SQL Server (40.0%), PostgreSQL (32.9%)
• For IDE & text editor: Visual Studio Code (35.2%) , Sublime Text (34.9%), IntelliJ (33.5%)

These technologies only represent a small percentage of what Vietnamese engineers are capable of. For many other technical services such as quality assurance, BPO, IT consulting, Vietnam’s technical landscape is even bigger, aligning with the world’s demands.

 

3. High-quality IT Worker

It came as a surprise for many business leaders when they evaluate the proficiency of IT workforce in Vietnam. No one could imagine a country once torn by the war can achieve so much in technology, especially in how IT institutions train and educate 50,000 IT engineers a year.

 

Early IT education and a large number of IT institutions

In Vietnam, education on technology is compulsory since an early age. You can see 15-year-old students taking classes in computer science and C++, and it’s just part of Vietnam’s high-school computer science education curriculum. Entering colleges, these students can have wider choices with 153 IT institutions, each specializes in one particular sector. For example, the University of Transport and Communications has its own IT major and the Hanoi University of Industry also has an IT major.

 

High level of professional competency 

Entering the workforce, IT graduates show great qualities in how we learn and adapt to the everchanging demands in technology sectors. For example, according to Global Skills Index 2020, Vietnam’s technology skill sets rank second in Asia Pacific and 22nd globally.

Also in Coursera’s 2021 Global Skills Report, in terms of Technology, Vietnam ranked 3rd in Asia Pacific. More specifically, Vietnam ranks 3rd in Computer Engineering and Software Programming, which is quite a benefit for clients looking for software development services.

 

 

As in a survey made by PwC, to respond to the digital demands, 84% of respondents say that they would learn new skills now or completely retrain in order to improve future employability. This number shows the readiness for Vietnamese tech engineers to adapt to the changes of the global technology landscape if it is to come.

Besides simple services such as software development, Vietnamese businesses also provide other technical services, from simple to high-tech, including BPO, software testing, programming to R&D consulting, system design, AI, Big Data, Blockchain, IoT, Robotics, VR, RPA, etc. Even some companies have been trusted in implementing digital transformation for corporations in the Global Fortune 500.

 

 

Language proficiency for Vietnam Software Development

For any college, it is compulsory for IT graduates to obtain Common European Framework of Reference (CEFR) level B1. For advanced programs, the B2 level is a must. Thanks to the preparation for language proficiency, Vietnamese tech engineers have the foundation to join the IT workforce. With language skills in hand, they can both communicate with clients from other countries and learn new skills on international forums.

Leaving college, IT workers step into the market with adequate language proficiency, in which 90% of them can communicate in English, 67% of them have Intermediate and Advanced English Level and 23% of the IT workers now have Elementary English skills.

In Vietnam, English is the dominant language in the IT market, while other languages like Japanese is not as popular among IT workers. However, many businesses targeting the non-English market have shown that they are capable of dealing with the language barriers by providing extra language classes and setting up Comtor/BrSE (in the case of Japan’s market).

 

 

4. Cost Optimize By IT Outsourcing Vietnam

Asia-Pacific is one of the ideal destinations for businesses looking for software outsourcing services as it offers cost optimization by 40% when comparing with other regions such as Eastern Europe and North Africa. However, even in the same region, we can also see the IT pricing gaps between Vietnam and the rest.

The price to hire an offshore software developer in Vietnam ranges from $10-$25/ hour, while in China it is $18-$50/ hour (for junior level). Other countries in Southeast Asia have a higher salary base, with Thailand’s average salary ranges from $13-$40/ hour, Philippines’ is $17.5-$42.5/ hour.

Regarding the infrastructure cost, Vietnam ranks 12th in the world, 6th in Asia, and 1st in Southeast Asia in terms of low internet service rates. Average users in Vietnam spend US$11.27 (equivalent to VND260,000) for a month on the Internet connection. The average monthly cost of broadband Internet in Vietnam was US$12.4, much cheaper than in Thailand (US$25.9), Indonesia (US$32.5), Malaysia (US$34.9), and the Philippines (US$51.1).

Office leasing cost in Vietnam holds a relatively low price, as the average price is $15/m2/month, 20% lower than that of other Asia-Pacific countries.

 

You may interest: South East Asia Software Testing Engineer Salary

 

5. Great Government Policies for IT Company In Vietnam

Prior to 2018, technology did not receive much of the government’s focus, but since 2018, many laws, initiatives and policies have been imposed to form the legal frameworks for technology development in Vietnam.

– On 24 December 2020, the Prime Minister signed Decision No. 2205/QD-TTg approving the Intellectual Property Development Program led by the Ministry of Science and Technology. The general objective of the Program is to utilize intellectual property as an important tool to improve the national competitiveness, create an environment inducive to innovation, and promote economic, cultural and social development.

– Vietnam’s Law on Cybersecurity includes data localization, government control over online content, and setting up local offices in Vietnam. This helps clients from all over the world stay protected under the law of Vietnam.

In light of the recent policies, Vietnam has shown its efforts in protecting technology businesses and their clients, hence leveraging the country’s capability to become a global software outsourcing leader.

In conclusion, Vietnam software outsourcing services offer great values thanks to the strong IT workforce, competitive labor price, and supportive government policies, making this country the go-to destination for foreign businesses.

 

 

About Lotus QA

Lotus QA is passionate about bringing young, talented, and skillful Vietnamese to the global market by helping clients in their digital transformation process.

We commit to being an effective quality partner for Vietnam software outsourcing. Working with us, you can focus on your business and leave it to us. We will always focus on what are our client’s business goals and all of their quality aspects. By understanding these, we commit to bringing value by helping our client meet their quality needs at the lowest cost.

Contact Lotus QA at to know more about how we can help you in software development in Vietnam:

• Website: https://www.lotus-qa.com/
• Tel: (+84) 24-6660-7474
• Fanpage: https://www.facebook.com/LotusQualityAssurance

Continuing with the interview, this time, I want to ask Xuan about her personal life because I believe a a busy leader like Xuan are very good at work-life balance.

 

Thank you for sharing about the work you’ve done. May I ask about your personal life? What is your childhood dream?

When I was a little girl, I wanted to become a painter because my father was a painter. And he made a lot of wonderful pictures. When it came to decide which university to apply for, my father asked if I wanted to become an artist or an engineer. I chose to become an engineer and I did not regret the decision. I love to create technology and want to work full time for it while painting can be my hobby, which means I can paint in my free time.

 

What do you think your characters are?

Ummmm…! What a hard question! I think I’m the kind of person who never gives up, very ambitious. People around me also say the same.

 

 

Who do you respect the most and why?

This is another hard question. I respect everyone because they are different from me and I can learn a lot from these differences. But the person I respect the most is my mother. My mother is the leading example of a person who “never gives up”. My mother brought me up in a challenging situation but she succeeded in raising a great family.

 

What do you do on weekends?

I do two types of activities. To relax, I go out with my friends for a coffee or spend time with my children, or read books, go shopping, so on! I do many things that would make me happy and gain more energy for the new week. Apart from entertainment, I also do some work-related stuff such as reviewing and making plan for the new week. 

 

 

What do you like about Japan?

I like everything about Japan. The people, the food and the surroundings. The first time I’ve been to Japan, I got lost and an old man took me from the airport to my dorm. It was a long distance but he still offered to help me. I felt very lucky at that time. Japanese foods are also very delicious, and the environment is also very clean and clear.

 

Thank you for sharing your thought. Last but not least, I would like to ask about your typical day. As the CEO of LQA, I think you have a very busy personal life, I am curious how you can manage.

 

It’s boooring (smiley face). 

4:30: I get up then quickly check my work such as email, schedule of the day.

5:30 – 6:30: Go to the gym or studying Japanese.

6:30 – 7:30: I make breakfast and enjoy it with my family.

7:30 – 8:00: I take my daughter to school and go to office. 

8:00 – 18:30: Work. 

18:30 – 21:30: I make dinner, play with my children if I don’t need to go out for dinner with clients.

21:30 – 23:00: I work a little bit if have a conference calls or reading book.

23:00: I do some personal stuffs then go to sleep.

You’re such an early bird. What a hectic life! That’s not boooring at all (smile). I really admire you. Thank you very much for finding time in your busy schedule to have a talk with me. I wish you best of luck.

 

From this interview, I learn more about LQA and why LQA was able to grow that fast. I also understand more about Xuan a very passionate and thoughtful person. With Xuan san leading the company, LQA is on the road to success.

If you have not read the Part 1 of this interview, please check it out here. 

 

Watch our introduction video: LQA Introduction

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Lotus Quality Assurance (LQA)

Tel: (+84) 24-6660-7474
Email: [email protected]
Website: https://www.lotus-qa.com/

 

The New Year 2020 comes with a lot of plans and opportunities for LQA. Today, let’s have an interview with Mrs Xuan Phung – the ambitious captain of the ship LQA, to know more about LQA’s goals for this year as well as her life as a businesswoman. 

Happy New Year Mrs Xuan. Thank you for taking the time to talk to me. Firstly, can you share with me about your ultimate goal when you started the company?

We aim to make LQA a global Quality Assurance (QA) company. We want to provide talented QA engineers to companies worldwide. We also want to support clients in making a high quality software products so that the end-users can use it without any errors. Last but not least, I want to make LQA a second home for my teammates where they can continuously grow up professionally and have a happy life.

What were your difficulties when you started your company?

The first difficulty I met was finding the first client. In the beginning, there was only me, no staff.  I faced a lot of obstacles, but I became more familiar with tough situations. I think solving problems and dealing with difficulties are my actual job. At the moment, I don’t think of those challenges as difficulties but as part of my responsibilities to grow the company.

Could you share with me the strength and weakness of this company?

Our strengths are that we specialize in testing, and we spend time and effort in making our services better. Since LQA is becoming more global, the company can cooperate with testing companies in different countries to understand the specific quality standard in these countries. Our team are talented and fast learners with strong determination. Our engineers have international testing certifications (ISTQB). Furthermore, our staff can communicate in many languages such as English, Japanese and Korean. LQA’s weakness is that LQA is a young company, so there are many things to learn as we go. But we always try to learn from each other.

What do you think is the best asset of this company?

I think human capital, my teammates are LQA’s best asset because great staff make quality services and satisfy the clients.

Why do you choose Japan to expand the business this year?

Made in Japan becomes a famous brand representing high quality. We believe that  as LQA offer high quality products, we can also provide our services to Japanese customers. Moreover, I think Japan is a potential market for ITO (Information Technology Outsourcing) because the country lack of human resources, especially IT engineers.

The rest of the interview about Xuan will be published soon. Stay tuned!

Watch our introduction video: LQA Introduction

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Lotus Quality Assurance (LQA)

Tel: (+84) 24-6660-7474
Email: [email protected]
Website: https://www.lotus-qa.com/

“We enjoy working with LQA because of the high quality of their work and their flexibility in accommodating any new task. In the past year, we had a variety of different projects, from simple bounding box annotations to complex pixel-wise segmentation, and every time the team was able to perform the task according to the specification and within the agreed time frame. We are very impressed with the amount of effort the team put into understanding of precise requirements and making sure there are no grey areas in the task before starting the work. The work processes seem very smooth and well organised, making the interactions easy and predictable. So far LQA have been one of our best experiences when working with external annotation teams.” – Daedalean

“Daedalean (www.daedalean.ai) was founded in 2016 with an aim to specify, build, test and certify a fully autonomous sensor and autopilot system that can reliably and completely replace the human pilot. Currently the company is working with EASA on an Innovation Partnership Contract to develop concepts of design assurance for neural networks.”

If you have any difficulties in data collecting or data annotation for your projects, feel free to reach out to us!

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Lotus Quality Assurance (LQA)

Tel: (+84) 24-6660-7474
Email: [email protected]
Website: https://www.lotus-qa.com/

Data Annotation is the process of labelling the training data sets, which can be images, videos or audios. Needless to say, AI Annotation is of paramount importance to Machine Learning (ML), as ML algorithms need (quality) annotated data to process. 

In our AI training projects, we use different types of annotation. Choosing what type(s) to use mainly depends on what kind of data and annotation tools you are working on.

Bounding Box: As you can guess, the target object will be framed by a rectangular box. The data labelled by using bounding boxes are used in various industries, and most used in automotive vehicle, security and e-Commerce industries. 

Polygon: When it comes to irregular shapes like human bodies, logos or street signs, to have more precise outcome, Polygons should be your choice. The boundaries drawn around the objects can give an exact idea about the shape and size, which can help the machine make better predictions.

Polyline: Polylines usually serve as a solution to reduce the weakness of bounding boxes, which usually contain unnecessary space. It is mainly used to annotate lanes on road images.

3D Cuboids: The 3D Cuboids are utilized to measure the volume of objects which can be vehicles, buildings or furniture. 

Segmentation: Segmentation is similar to polygons but more complicated. While polygons just choose some objects of interest, with segmentation, layers of alike objects are labeled until every pixel of the picture is done, which leads to better results of detection.

Landmark: Landmark annotation comes in handy for facial and emotional recognition, human pose estimation and body detection. The applications using data labeled by landmark can indicate the density of the target object within a specific scene. 

If you have any difficulties in data collecting or data annotation for your projects, feel free to reach out to us!

On 19th November, LQA was honored to join “Kanagawa business seminar” – the significant networking event with the participation of Kanagawa government officials, Kanagawa and Vietnamese businesses.

 

Here, LQA CEO Xuan Phung had a conversation with Mr. Yuji Kuroiwa (黒岩 祐治), the Governor of Kanagawa Prefecture, to share with him about LQA’s plan to set up a Japanese subsidiary in Kanagawa. Kanagawa is an ideal place for the establishment, as it offers a range of advantages. In geographical terms, Kanagawa’s capital city – Yokohama, which lies on Tokyo Bay, in the Kantō region of the main island of Honshu, is a major commercial hub of the Greater Tokyo Area. The prefecture’s government also gives special preference to foreign businesses. 

 

 

Mr. Yuji Kuroiwa was delighted with this plan of LQA, and he believed that this would be a great step forward for the company. The government will be willing to help LQA so that the company can develop, achieve much success in Japan.