HO CHI MINH CITY (Xinhua) – Vietnam has become the world’s top outsourcing location for the first time in terms of costs, risks and operational conditions, according to the latest research from global real estate adviser Cushman & Wakefield.

Vietnam has capitalized on increasing labor costs in China to take the first place in the ranking while India remains the world’s largest business process outsourcing market, state-run Vietnam News Agency reported Thursday, quoting the company’s research.

Vietnam established its presence in the sector thanks to numerous government reform policies to promote the country as a key outsourcing destination. C&W predicts the service segment will expand rapidly given the average age of the country’s workforce is under 30 and 1-1.5 million people enter the labour market every year.