As one of the leading offshore software outsourcing destinations in the recent decades, Vietnam is a top choice for many foreign enterprises that currently seeking tech talents in South-East Asia.
Business organizations choosing to outsource their software development projects to Vietnam can enjoy many benefits such as having access to a large pool of skilled IT talents as well as competitive pricing along with a well-established IT infrastructure.
According to a report by globaldata.com, the Vietnam ICT market was evaluated at US$ 13.73 billion in 2022 and expected to keep growing at a compounded annual growth rate (CAGR) of 17.50% to reach a value of US$ 30.74 billion by 2027. This shows a strong potential of growing demand for Vietnamese tech talents and their expertise.
In this article, let’s examine why Vietnam is such a popular choice for software outsourcing services in Asia.
Vietnam’s IT Market Highlights
The Vietnam’s ICT market is growing and expanding by a variety of factors. Enterprises in many industries haven been embarking on their digital transformation initiatives, leveraging advanced technologies like cloud computing and artificial intelligence to optimize business processes gaining a competitive, ultimately driving the sector growth.
Vietnam government’s policy including tax incentives for the software development services, with preferential tax rates and tax exemptions, is also an advantage that contributes to the growing of the software development outsourcing market. Furthermore, Vietnam’s young and dynamic skilled workforce creates a substantial market for the software development services, positioning the country as a major tech hub in Asia.
Vietnam’s Software Outsourcing
Vietnam software development market overview
Vietnam’s readily available and skilled software talent pool is one of the reasons that make foreign companies choose to build or expand their development center in the country.
Take a quick look at Clutch.co, you’ll find that there are over 200 software development companies in Vietnam, ranging from large to mid-size contributing significantly to Vietnam offshore software development industry. Additionally, LinkedIn data shows Vietnam boasts more than 78,000 software engineers mostly working in foreign invested companies.
Each year, many students graduate from university majoring in computer software, contributing to this talent pool’s growing inflow. This further highlights the strong potential of Vietnam’s developer talent pool.
Tech Talent in Vietnam
Based on findings from the Coursera Global Skills Report 2024, for the regional skills ranking, Vietnam’s software developers rank 3rd in the South-East Asia region for technology behind Singapore and Indonesia. Their technical strengths include advanced technologies, computer programming, and data science. Also, according to the Vietnam 2023 IT market report by topdev.vn technologies such as NodeJS, Java, MySQL, Spring Boot, Laravel, .NET Core, Django are among the most popular tech stacks by Vietnam software developers. Vietnam’s highly skilled software engineering workforce is valuable for companies seeking top talent in Data Science and technology.
Cost Advantage
In comparison to many developed nations, the cost of living in Vietnam is significantly lower. Specifically, the cost of living in Vietnam including rent is 65.5% lower than in the United States. (Data by Numbeo.com)
In returns, the average income earned by a typical software developer in Vietnam is also lower compared to the western countries. Overall, this translates to much cheaper software development costs, office rents, utilities and other expenses.
Quality
While Vietnam has established itself as a worthwhile destination for offshore software development outsourcing thanks to its competitive labor costs, many companies may question whether these lower costs compromise the quality of services provided.
Lower software development costs do not equate to the lower quality of the work delivered. The lower pay is simply due to cheaper living costs. In general, software engineers’ salary in Vietnam is 50% cheaper than in the US, UK, and other EU nations.
However, the final cost of hiring a software developer in Vietnam may vary depend on many other factors including years of experience, engineer’s tech stack expertise, and other terms such as location, and duration of contract.
Vietnam Software Development For Specific Industry Needs
These companies include large software outsourcing enterprises that have been in outsourcing businesses for decades as well as newly established startups.
Whether it’s custom software development or building a dedicated team for your company’s development project, Vietnam offers many software companies that can take on projects ranging from small-medium size to enterprise ones.
Those software development firms serve many industries including BFSI, logistics and transportation, retail, telecommunication, education, etc.
Conclusion
Vietnam has become a strong candidate for companies looking to outsource their software development projects, boasting a skilled and young tech workforce. Trustify Technology, a Vietnam leading software development partner with a global presence, can help you tap into the potential of Vietnam offshore software development.
We have a presence in over 4 countries across the Americas, the UK, and Asia, giving you access to a vast talent pool of over 110+ experts. Trustify Technology has a proven track record in software development expertise in a variety of business industries. We provide end-to-end services including cutting-edge technology consulting, development, and full-scale software development outsourcing and IT staff augmentation.
Our software engineers at Trustify Technology can join your existing team and work on your projects at any stage, we can help quickly ramp up the development capacity or scale down throughout the entire software development lifecycle. Contact us, and let’s discuss how we can help with your development goals today.