Vietnam's emerging status as an offshoring destination of choice got a boost this week as the Prime Minister of Vietnam and UK Trade and Investment Chief Executive, Andrew Cahn, championed the benefits of doing business in Vietnam to over 250 senior UK business leaders. The forum, hosted by global recruitment consultancy Harvey Nash, highlighted the region’s challenge to India and China for outsourced services.

Vietnam has a young, skilled IT workforce and now produces thousands of English-speaking graduates every year. Staff churn is low, at less than five percent. In recent months Bill Gates and the Bush administration have joined the chorus of voices backing the country's ambitions to be a global player.

In his address, Harvey Nash outsourcing MD Paul Smith predicted that Vietnam will be the most desirable destination for outsourced services by 2012. Smith said: “The duopoly India and China have long enjoyed within IT outsourcing is fast coming to an end – and rightly so. With deregulation, accession to the World Trade Organisation and UN Security Council as well as significant overseas IT investment, Vietnam is becoming the outsourcing destination of choice for international business, not simply the poor relation.

"Vietnam has always offered a highly skilled labourforce and low costs, but this coupled with economic expansion, political stability and diplomatic acceptance means the decision to choose it as an offshore destination has become a no-brainer.” UKTI CEO Andrew Cahn added that Vietnam "offers competitive, high-quality services and is now getting its due recognition as an attractive investment destination for all businesses.

"UK companies such as BP, Prudential and Harvey Nash have led the way into Vietnam, but opportunities exist for all aspects of UK industry, from retail services to infrastructure development and financial services to IT outsourcing.

"Choosing the right offshore destination plays a critical part in shoring up UK businesses’ global competitiveness. UK-Vietnam bilateral trade has enjoyed double digit growth over a number of years and this is a trend we hope will continue and bring benefits to UK based businesses.”

The ‘Discover Vietnam’ business forum took place in London and was attended by Vietnamese trade representatives and senior Vietnamese businesspeople, as well as UK firms who are already successfully operating in Vietnam.

Traveling with a senior business delegation, the Prime Minister of Vietnam outlined the benefits of doing business in a country whose GDP growth is second only to China in Asian economic expansion and is now the third largest offshore software services destination in South East Asia.

Harvey Nash has been working in Vietnam since 2000 and recently acquired Silkroad, a technology and software development company to cement its position in the region further and widen its international reach and service offering. The 2,500-strong business is one of the market-leading IT services companies in Vietnam and the move makes Harvey Nash the biggest single software player in the region.