BACKVietnam’s tech industry is rapidly gaining global recognition as a rising hub for innovation and development. With the IT outsourcing market projected to reach $1.24 billion by 2029, the country is attracting businesses worldwide with its skilled workforce, competitive costs, and thriving digital landscape.
Strong government initiatives and major investments from tech giants like Nvidia, Meta, and Google have propelled Vietnam to the forefront of technological advancement. As the country expands its expertise in software development, AI, cloud computing, and cybersecurity, it is becoming a top destination for seeking highly skilled IT teams and cutting-edge solutions.
These strategic efforts are establishing Vietnam as a leading outsourcing hub in the global tech industry. Let’s take a closer look at how the country has become a hotspot for IT developers, why businesses are turning to its expanding workforce, and what lies ahead for this fast-evolving sector.
Table of contents
The rise of Vietnam’s IT sector
Vietnam’s IT sector has experienced remarkable growth, positioning the nation as a prominent hub for technological innovation. This surge is bolstered by substantial foreign direct investment (FDI), with inflows in 2023 doubling those of regional peers like Indonesia and the Philippines. Global technology leaders have significantly expanded their operations within Vietnam, underscoring the nation’s appeal as a manufacturing and innovation hub.
The Vietnamese government has played a pivotal role in nurturing this environment through strategic initiatives aimed at workforce development. Notably, a project approved in early 2025 aims to establish networks of technology talent training centres by 2030, aligning with Industry 4.0 initiatives. This endeavour seeks to cultivate a workforce adept in emerging technologies, ensuring the country’s competitiveness on the global stage.
These efforts are gaining international recognition. In December 2024, Nvidia partnered with Vietnam to launch an AI research and data centre, strengthening AI talent and digital infrastructure. This collaboration aims to bolster AI talent and digital infrastructure, further cementing Vietnam’s status as a burgeoning tech powerhouse.
Vietnam is now a leading IT hub in Southeast Asia. The Global Services Location Index (GSLI) ranks it among the top 10 for developer capabilities, with Vietnamese developers earning global recognition for their technical skills. As Vietnam continues to attract global attention, its commitment to technological advancement and talent development positions it as an increasingly attractive destination for IT professionals and investors alike.
Tap into Vietnam IT expertise: What sets Vietnamese developers apart from the rest?
1. Vietnam’s expanding young and tech-savvy IT workforce
Vietnam’s IT sector is thriving across eCommerce, digital marketing, and software development, fueled by a young and rapidly growing workforce. Developers aged 25-29 make up nearly 30% of the industry, with those 20-24 not far behind. It’s no exaggeration to say that this immense cohort of increasingly diverse and well-informed young people has the potential to modernise the industry at a faster rate than anywhere else in the world.
Vietnamese developers are a key driver of the country’s burgeoning IT outsourcing sector, particularly in software development. According to the Vietnam IT Market Report 2024 – 2025, around 560,000 professionals work in IT-related fields. This steady stream of talent ensures Vietnam remains a major player in the global tech landscape.
Beyond technical skills, Vietnamese developers are known for their dedication and passion for innovation. With government-backed training programs, and investments from leading tech firms, Vietnam is solidifying its position as a top destination for IT talent and a key contributor to the future of global technology.
2. Education and highly rated tech proficiency
Vietnam’s IT education system is rapidly evolving, backed by strong government support for STEM programs. Each year, 55,000 to 60,000 students pursue degrees in computer science and IT-related fields, strengthening the country’s skilled workforce to meet growing tech demands.
An impressive 82% of IT professionals hold formal degrees in IT or related fields, while others enhance their expertise through advanced degrees or alternative learning paths like online courses, creating a highly diverse talent pool.
Vietnamese developers are making their mark globally, ranking 10th in the Best Developers Survey and 23rd in HackerRank’s worldwide developer skills ranking. Popular programming languages include Java (49.3%) and Swift (19.7%), with increasing adoption of Flutter and React Native for cross-platform development. With a blend of education, innovation, and global recognition, Vietnam continues to establish itself as a leading hub for tech talent.
3. Budget-friendly workforce without compromising quality
Vietnam has become a leading outsourcing destination, offering skilled teams at competitive rates with low turnover. More than just executing tasks, Vietnamese experts integrate seamlessly with in-house operations, leveraging AI, automation, and cloud tools for efficient collaboration. Their adaptability to global business practices fosters smooth teamwork, innovation, and long-term success.
With a strong work ethic and commitment to continuous learning, Vietnamese teams help businesses uphold high standards while keeping costs manageable. They don’t just handle specialised tasks, they integrate seamlessly into your organisation, ensuring smooth workflows and reliable results. Beyond affordability, outsourcing to Vietnam allows businesses to scale quickly and maintain a competitive edge
For companies seeking both quality and cost-effectiveness, Vietnam stands out as one of the best choices in the global tech outsourcing market.
The future of IT developers in Vietnam
While countries like India and the Philippines face talent shortages in outsourcing, Vietnam’s IT sector continues to thrive. A young, tech-savvy workforce, competitive labour costs, and strong government support fuel the industry’s rapid growth. With expanding sectors like software development, AI, fintech, eCommerce, and cybersecurity, Vietnam is solidifying its place as a key player in the global tech market.
Looking to leverage Vietnam’s IT talent? Learn just how good are Vietnamese software developers to build a high-performing offshore team in confidence for long-term success.
