Business Vibes

Is Developing Software in Vietnam Advantageous?

While software development services have recently gained global popularity, the picture of outsourcing services in Asia also witnessed remarkable changes with the rising stars in the IT outsourcing market.

Technical expertise, cost-savings as well as a multitude of other benefits have made several new countries, including Vietnam strong competitors to China and India, leaders in the field. In this blog, let together examine whether Vietnam is a good destination for software development based on some important factors.

Beneficial business deals

Vietnam’s geographical position (GMT +7 time zone) and the city’s proximity to the border allow smooth collaboration with the USA’s west coast, and Europe. For global companies, this position can enable a near 24-hour productivity cycle.

There are direct connecting flights with major European and US cities available throughout the day. Although travel time takes obviously longer, a maximum time difference of below 24 hours still makes it possible to set up efficient cooperation with the help of daily sync-ups and flexible working hours.

Development rates

Vietnam is predicted to be the fastest-growing Asia Pacific market over the next 10 years. (Forbes)

Vietnam barely had any IT companies 15 years ago, but now there are close to 14,000 IT businesses spanning hardware, software, and digital content. The Vietnam government has been implementing numerous strategies and policies to boost the telecom infrastructure, IT human resources, and incentive mechanisms to attract investment. In recent years, the government has connected Vietnam IT zones, gathered the capacity of all resources to attract investment, and created a solid backbone to develop the IT sector.

Investor-friendly environment

Vietnam’s government is strongly committed to growing its tech industry. Policies to promote the industry include special enterprise zones, tax breaks, and grants for tech companies. They also include infrastructure investments like new software parks and improved ICT connectivity. These make Vietnam in the top 10 countries for ex-pats to live and work in, therefore working and collaborating with Vietnam companies for outsourcing software should be taken into consideration.

DataHouse Asia welcome technology companies from Korean to Vietnam

These are not temporary policies. As a one-party state with firm political leadership, Vietnam’s leaders are able to make strong, long-term decisions. Political stability also means social stability. While some IT hubs have unpredictable government policies and occasional social upheaval, Vietnam offers consistency and reliability.

Talent Pool for its Software Industry

What further sets Vietnam aside as your first choice offshoring destination is the level of technical talent. The abundance of highly-educated software engineers in Vietnam means lower prices and a deep pool of rich talent for companies needing to outsource software works.

In terms of hard skills, Vietnam has over 120,000 IT specialists and more than 40,000 new ICT graduates from a total of 400,000 each year. There is a strong priority on learning to read, write, and speak in English alongside engineering skills, as evidence by the strong language skills of DataHouse Asia’s own team.

In fact, many countries and companies work directly with Vietnamese universities to build programs to provide the kind of staff needed to work with foreign companies working within Vietnam.


Many companies are attracted by the labor costs with IT outsourcing companies in Vietnam. Indeed, tech services are up to 30% less expensive than in India and half the cost when compared to Eastern European countries. In Vietnam’s case, the hourly rate is around $30 per hour while in Eastern Europe, a software developer can earn as much as $50 per hour. Only Africa can rival Asia’s labor costs; all other tech hubs in the world are significantly more expensive.

The efficiency of Foreign Languages

English is commonly spoken, with Vietnam ranked #10 out of 25 Asian regions for English proficiency

Unlike many other Asian languages, Vietnamese uses a Latin alphabet, just as English does, which makes it relatively easy for Vietnamese speakers to learn English. In addition, English is the most popular second language in Vietnam as it is a compulsory subject in schools, and the majority of Vietnamese college graduates have high proficiency in English. All of this serves to make Vietnam’s technology workers surprisingly competent in communicating in English.

DataHouse Asia – Reliable Partner for Technology Innovation in Vietnam

Vietnam is a nation on the rise, with a national sense of competitiveness uncommon in the West. If all the major IT companies that are the gold standard in technical competency are setting up house in Vietnam, this says a lot about the technical talent Vietnam is offering.

Situated in Danang city, the heart of central Vietnam – home to both established companies and startups. We have successfully delivered 100% of our projects to 19 countries worldwide with our proven global offshore software development center for over 10+ years.

By outlining rational facts, we hope to bring you insights about the country and take Vietnam in your consideration as a good offshore development center. Ready to materialize your ideas? Contact us:

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