I think you're onto something.
Even Indians are losing their IT jobs to Vietnamese. [1]
The squeeze is real.
Good time to start a business I guess.
[1] https://www.reddit.com/r/developersIndia/comments/1eckee9/oh...
I work for a company that has satellites in both India and Vietnam (among others).
Working with Vietnam is much better, if someone knows English then they have a decent enough education; and their local institutions make it possible to verify credentials. They have less social issues besides.
Indian outsourcing is almost a bit outdated... Effective machine translation and globally widespread english education, they really don't have much to offer.
Their culture essentially makes it impossible to get predictable value out of a hire.
> our entire development team has been replaced. They can barely speak English.
The race to the bottom is real. xD. (ps: I've spent around a year in Vietnam and barely any software developer I met can speak any intelligible English. So I believe the OP).
I live and run a (non-tech) business in Vietnam. I've never tried to run a business in India but I've spent quite a while there, and have worked on occasion with Indin freelancers.
I can tell you that it's nothing to do with price point. There are cultural difficulties and language barriers, sure. But Vietnamese are generally highly conscientious, well educated, incredibly hard working people. And besides this, their culture (no strong religion, high value on women in then workplace, non confrontational, accepting of LGBT and different cultures) fits very well with Western values. It's not perfect - taking criticism on board is not a strong point of Vietnamese culture, for example.
I fully understand it's not fair to dismiss huge country like India, and there are certainly many amazing Indian workers out there, and I've had to let go a fair number of Vietnamese slackers while building our team (as I would in any country). But statistically speaking, you'll probably have a far better time outsourcing to Vietnam over India.