Just how good are Vietnamese software developers?

Technology is taking over the global business landscape. Businesses all over the world are looking at how they can digitise their product or service offerings and take advantage of the SAAS model for doing business.

With so many businesses looking at developing technology solutions for their customers, it is no surprise that there is a global shortage of software developers. Which means if your looking to hire devs in Australia then you have to be willing to pay a lot to hire and retain good talent. So leveraging the economic arbitrage benefits of hiring similarly skilled people in lower cost economies makes sense.

For developed countries like Australia, you are paying a premium cost to have a project done that could easily be replicated offshore, for up to a fraction of the price.

IT development costs

Seeking talented software developers around the world gives you the chance to discover countries like Vietnam, where labour costs are 90% cheaper than the US, 50% less than China and even 30% lower than India, which means more funds for development.

According to Forbes, Vietnam has overtaken other popular BPO locations, primarily China, to become the next IT hotspot in Asia-Pacific. Notably, compared to Chinese developers, who charge about $20 to $50 per hour, Vietnamese developers provide more affordable hourly rates ranging from $14 to $40. These figures are convincing enough to place Vietnam as the top future contender for offshore development projects.

Compare that to Australia where you can pay up to $100+ an hour to hire a contractor for the same project. That is up to seven times more expensive to get the same result. On a full-time basis you could pay a Vietnam software developer up to $65,000 (fully inclusive of all overheads, equipment, office space and infrastructure), whereas in Australia it would easily be in excess of $100,000 salary alone. It doesn’t make business sense.

In fact, MarketsInsider placed Vietnam as the fifth best country to outsource too just a few years back.

Vietnam’s rapidly growing tech industry, fuelled by a young, educated workforce and government support, makes it an attractive destination for software outsourcing.

IT development knowledge

It doesn’t matter what you need in terms of software development, the Vietnamese option is a perfectly viable one on all fronts.

Vietnam’s software development industry is home to a large pool of talented developers with expertise in a wide range of programming languages and technologies, offering a diverse set of skills to clients seeking outsourced software development services.

The coding languages available include C+, .NET, PHP, Python, JavaScript, SQL, CSS and .NET/C# amongst others. Among mobile developers, Vietnamese software engineers use Java, Swift, and Objective-C as the top three most widely used programming languages. While, React Native and Flutter have experienced a significant gain in popularity. AWS gets the first rank regarding Cloud platforms followed by Microsoft Azure, VMWare, Firebase, and Google Cloud.

I guess what we’re saying here is that you have the luxury of finding developers that have exactly what you need when you widen your talent search to include other countries.

Growth of the ICT industry in Vietnam

Information and communication technology (ICT) is one of the fastest expanding industries in Vietnam. Overall ICT revenue in Vietnam in 2021 was estimated to be about $136 billion, which is indicative of an 8% growth rate.

In fact, ICT is growing at three times that of the national GDP, which was just 2.58% in 2021. Before Covid-19, the industry was expanding rapidly by 15.2% each year. ICT services (excluding trade), software outsourcing, and digital content generated around $20 billion in income, 40% of which came from export activities.

There are already around 39 cloud computing service providers in Vietnam. The nation is home to around 27 cloud computing data centres with over 270,000 servers, which have been invested in by 11 local firms. The cloud market in Vietnam has reached the value of approximately $133 million and is projected to be worth at least $500 million by 2025.

Vietnam has an enormous labour supply, with roughly 430,000 software developers and approximately 1,030,000 individuals working in the ICT industry. Vietnam outnumbers both Singapore and Malaysia, which have an estimated 180,000 and 250,000 developers, respectively. In addition, Vietnam almost triples the number of developers in Thailand, which now has approximately 150,000. It is expected that over 50,000 technology graduates from more than 149 colleges will join the labour market each year in Vietnam. Furthermore, each year 412 IT vocational institutions churn out around 12,000 professionals to the ICT industry.

Vietnam takes its technology sector very seriously.

So, if you are looking to outsource your IT then look no further than Vietnam. Qualified, experienced developers at a fraction of the cost.

If you want to learn more then download our eBook: ‘Your guide to integrating an outsourced software development team into your business’.

Is Outsourcing The Right Strategy For Your Business?

Why Vietnam is the best place to outsource your software development

Frequently Asked Questions(FAQ)

What specific factors contribute to the affordability of Vietnamese software developers compared to those from other countries such as China and India, and how do these cost differentials impact the outsourcing decisions of businesses, particularly those from developed countries like Australia?

The affordability of Vietnamese software developers compared to their counterparts in countries like China and India stems from several factors. Vietnam offers significantly lower labor costs, with rates up to 90% cheaper than the United States, 50% less than China, and even 30% lower than India. This cost advantage allows businesses, particularly those in developed countries like Australia, to allocate more funds towards development. For instance, while Australian businesses may pay up to $100+ per hour for a contractor, they could secure a Vietnamese software developer for rates ranging from $14 to $40 per hour. Such cost differentials make Vietnam an attractive destination for offshore development projects, especially considering that the quality of work remains competitive.

What measures or indicators can businesses use to assess the quality and proficiency of developers from Vietnam, especially when considering them for critical projects or long-term partnerships?

Assessing the quality and proficiency of Vietnamese software developers requires careful consideration of various measures and indicators. While cost is an important factor, businesses should also evaluate developers based on their technical skills, industry experience, and track record of successful projects. One approach is to review portfolios or case studies showcasing past work and achievements. Additionally, businesses can seek referrals or testimonials from previous clients to gauge developers’ reliability and competence. Collaboration platforms like GitHub or technical forums can provide insights into developers’ coding abilities and problem-solving skills. Conducting thorough interviews or technical assessments can further help assess developers’ suitability for specific projects or roles. By evaluating these factors comprehensively, businesses can ensure they engage high-quality Vietnamese software developers capable of delivering successful outcomes.

Despite the rapid growth and expansion of Vietnam’s ICT industry, what potential challenges or risks should businesses consider when outsourcing IT projects to Vietnam, and how can they mitigate these risks to ensure successful collaboration with Vietnamese software developers?

Despite the rapid growth and expansion of Vietnam’s ICT industry, businesses considering outsourcing IT projects to Vietnam should be aware of potential challenges and risks. These may include cultural and communication differences, intellectual property protection concerns, and challenges related to project management and quality assurance. To mitigate these risks, businesses should establish clear communication channels and processes, ensure alignment of expectations and objectives, and implement robust contractual agreements to safeguard intellectual property rights. Building strong relationships with outsourcing partners and investing in regular communication and collaboration can help foster trust and mitigate misunderstandings. Additionally, conducting due diligence and selecting reputable outsourcing providers with a proven track record of successful collaborations can minimise risks and maximise the chances of project success. By addressing these challenges proactively, businesses can leverage Vietnam’s vibrant ICT industry effectively and realise the benefits of outsourcing IT projects to the country.