Vietnam is Australian FIs' top pick to build digital hubs

The location is amongst the best to pursue software development, data analytics, and digital testing.

Vietnam has ranked the top choice for Australian financial institutions to build digital hubs for software development, data analytics, and digital testing, according to KMS Solutions.

Citing Kearny's Global Service Location Index, Vietnam is among the top six best places for IT sourcing due to its business environment, technology systems, IT skills-equipped individuals and cost efficiency.

Vietnam's economy, particularly in fintech, has dedicated $639m to digital transformation, leading to a remarkable 40% growth in digital banking and an impressive 249% surge in foreign investments by 2022.

Additionally, Vietnam has made notable progress in the technology landscape, advancing 7 spots in the government's AI readiness index for 2023. 

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Among ASEAN nations, it now ranks 6th and holds the 55th position globally. The government's establishment of the National Innovation Center (NIC) underscores its dedication to fostering technological advancements.

Financial institutions such as ANZ Bank, HSBC, Deutsche Bank, NAB, and others have been attracted to Vietnam’s potential to build digital spaces.

Notably, NAB, Australia's largest business bank, launched the NAB Innovation Centre Vietnam (NICV) in 2019 to enhance technology and customer experience. 

Throughout the years, the NICV has expanded rapidly, with three offices across HCMC and Hanoi, employing hundreds of skilled professionals in various tech roles.