In recent years, Vietnam has emerged as a prominent hub for software development, offering a compelling blend of skilled talent and cost-effective solutions. The country’s tech industry is on a strong growth trajectory, with the IT services market projected to reach approximately US$2.21 billion by 2025, of which IT outsourcing will contribute around US$0.79 billion.
By partnering with Vietnamese developers, businesses can access high-quality expertise at a fraction of the cost, when compared to hiring locally in countries like Australia. This allows companies to scale efficiently, optimise budgets, and maintain a competitive advantage in an increasingly digital world.
But just how good are Vietnamese software developers? Let’s explore their technical capabilities, and why Vietnam is becoming an outsourcing powerhouse.
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Vietnam at a glance
Location: Southeast Asia
Timezone: GMT+7
Population: 101.3 million (as of February, 2025)
Major Cities: Ho Chi Minh City, Hanoi, Danang
Developer Workforce: Approximately 500,000 developers (projected by 2025)
Popular Programming Languages: Python, C++, Java, ASP.NET, PHP, Golang, JavaScript, and Python
IT development knowledge
Vietnam’s thriving tech industry is driven by young, tech-savvy developers skilled in various programming languages and technologies. According to the Vietnam IT Market Report 2024-2025 by TopDev, the country boasts approximately 560,000 professionals in computer science and IT-related fields. Whatever your software development needs may be, Vietnam offers a highly capable and versatile workforce.
Vietnamese developers excel in various programming languages, including Python, C++, JavaScript, PHP, and Java. Notably, Python has gained significant traction, becoming the most favoured programming language. In mobile development, Java, Swift, and Objective-C are predominantly used, while frameworks like React Native and Flutter have seen a surge in popularity.
Vietnamese developers are also rapidly enhancing their AI skills, focusing on generative AI, responsible development practices, and the latest frameworks. Aligned with the national AI strategy set for 2030, which aims to position Vietnam as a regional innovation hub, they are actively engaging in training programs, collaborating with international partners, and adapting to the evolving AI landscape.
Budget-friendly workforce
Another key reason Vietnam has become a top choice for businesses seeking high-quality software development talent is its budget-friendly workforce. Unlike The Philippines and India, where intense competition has driven up salaries and turnover rates, Vietnam remains in a strong growth phase. This translates to a large pool of skilled developers, stable wages, and lower attrition – making it a go-to outsourcing destination.
The cost of hiring developers in The Philippines and India has surged due to rising living expenses and competitive tech markets, putting pressure on companies to pay higher salaries. In contrast, Vietnam offers a more affordable alternative without compromising on expertise. With a thriving tech ecosystem and government-backed initiatives to boost IT development, the country is positioning itself as a serious competitor to more mature outsourcing hubs.
Beyond cost savings, outsourcing to Vietnam gives businesses access to a deep talent pool while allowing them to scale quickly and efficiently. For companies seeking both affordability and quality, Vietnam is proving to be one of the smartest choices in the global tech landscape.
Growth of the ICT industry in Vietnam
Vietnam’s Information and Communication Technology (ICT) sector is experiencing rapid growth, solidifying its position as a rising force in the global tech landscape. By 2025, the market is expected to reach USD 9.12 billion, with projections soaring to USD 14.64 billion by 2030, reflecting a robust compound annual growth rate (CAGR) of 9.92% over the forecast period.
Fueling this expansion is Vietnam’s abundant and continuously evolving talent pool. With a population of 101.5 million as of 2025, the country produces over 50,000 technology graduates annually, ensuring a steady influx of skilled professionals to support the industry’s dynamic growth.
Government support has also been instrumental in driving Vietnam’s digital transformation. Proactive policies and incentives have fostered a thriving tech ecosystem, attracting both local startups and international enterprises. As a result, Vietnam has emerged as a strong contender against traditional outsourcing powerhouses like The Philippines and India, offering a competitive edge in terms of innovation and affordability.
Vietnam’s ICT sector is on an upward trajectory, fueled by strategic investments, a thriving talent pool, and strong government support. Hence, businesses looking for top-tier software development solutions can benefit from Vietnam’s unique combination of expertise, scalability, and affordability.
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