In the global IT community, Vietnam has emerged as a growing market for software development outsourcing in recent years. It has been a promising destination for organizations looking to outsource their software development projects because of its competitive outsourcing cost along with a highly qualified IT workforce and top tech talents. In this article, we will evaluate the current position of the Vietnam IT service industries as well as the key elements to consider before outsourcing IT projects to Vietnam.

1. High-Quality Technical Education

The quality of technical education, as well as self-study and research, is steadily improving in Vietnamese universities. Education has been invested in technology that boosts  Vietnamese IT professionals to rank among the top software engineers in the world. The number of skilled Vietnamese IT developers is constantly increasing. Tech companies capitalize on these trends by hiring skilled software engineers from Vietnam’s huge tech talent pool and collaborating with them through the extended team model.

10 Great Benefits Of Software Outsourcing in Vietnam

Source: TOPDEV

2. Cutting-edge technologies

In terms of technology, Vietnam software businesses stay current with the rest of the global market. Outsourcing companies in Vietnam are already working with emerging technologies such as Blockchain, cloud computing, IoT, Machine Learning, Cloud Computing, and all other widely used software development technologies. Furthermore, Vietnamese developers have the outstanding technical expertise as well as hands-on experience working on complex large-scale IT projects accessed by millions of people throughout the world.

10 Great Benefits Of Outsourcing Software In Vietnam 2

Source: TOPDEV

3. English Proficiency

Language is a common challenge to success when outsourcing software. Where this might be a massive hurdle in other offshore software companies, it is not a major issue in Vietnam when it comes to software outsourcing.

Overall, Vietnam is ranked 60th on the EF Education First English Proficiency Index and ranks 7th in the Asia area. College graduates will be proficient in the English language, regardless of degree. This means that the software developers who would provide outsourcing services would have no barrier in using English and are often greater than the national average. Put your communication concerns to rest, Vietnam is English-ready for offshore software development. As a result, when contacting a Vietnam software outsourcing firm, language and communication should not be a problem. This, along with a number of other factors, certainly positions Vietnam among the top IT outsourcing locations in the world.

EF Education First English Proficiency Index

Source: EF EPI 2022

4. Cost-effective and reliable services

Vietnam offshore software development is well-known as a cost-effective software outsourcing option. According to CIO magazine, software development outsourcing in Vietnam is around 90% less expensive than employing US workers. The savings would be 50% compared to China and 30% to India. In addition, Vietnam is in “Top 10 Countries to Outsource Software Development in 2020” by Product Coalition. Investing in the Vietnamese software sector is a smart financial decision when these two markets reach the mature stage and the cost tends to rise. You will not only save money, but you will also get high-quality software developers.

10 Great Benefits Of Outsourcing Software In Vietnam 4

Source: TopDev

5. Special Culture & Good People

Engineers in Vietnam are highly responsible, punctual, and conscientious, with great communication skills, ethics, patience and passion for innovation and modern technologies. The teams are extremely adaptable, readily adopting the client’s tools and processes, delivering frequent clear reports, and communicating openly about any possible difficulties. Technical teams always ensure that clients obtain close-knit, well-suited teams of specialists, with a match of not just technical capabilities but also long-term connections.

6. Labor force

The workforce has far lower turnover and much better stability than most other nations involved in outsourcing. In general, firms in Vietnam have an IT-related turnover rate of less than 5%, but in many other countries, such as India, this rate might be 10% or more.

Ho Chi Minh is recognized as having a “significantly low attrition rate” and a “strong labour pool,” which are two of the major reasons for the city’s placement on its list of the top 50 outsourcing cities in the globe. Vietnam is ranked #25th in TSGI Top 50 Digital Nations all over the world according to Tholons Services Globalization Index 2021.

10 Great Benefits Of Outsourcing Software In Vietnam 5

Source: Tholons Global Innovation Index 2021

7. Vietnam has a quick economic recovery with talents

The effective treatment of the COVID-19 epidemic has received widespread acclaim. Vietnam continues to expand its economy and promote free trade. Because of its extensive connection with the global economy, it is even affected by the ongoing COVID-19 epidemic but has demonstrated extraordinary resilience. Thanks to Vietnam’s solid foundations, the economy has proven resilient through different crises, the latest being COVID-19. According to World Bank, GDP growth slowed to 2.6 percent in 2021 due to the emergence of the COVID-19 Delta variant and is expected to rebound to 7.2 percent in 2022 and 6.7 percent in 2023. While many other developed countries remain restricted, Vietnam is now successfully returning to work or working from home.

In a scenario where every firm is forced to reduce its operations due to a quarantine order, Vietnam has the capacity to keep the business functioning without interruption while still meeting consumer demand.

10 Great Benefits Of Outsourcing Software In Vietnam 6

Source: STR.2020

8. Trustful destination

Vietnam’s economy has grown steadily for three decades, overcoming the Asian and global financial crisis on its way to become a middle-income country from an impoverished society. The economy is based in part on reforms aimed at creating a more efficient corporate environment. Vietnam has political stability and social harmony under the leadership of the Communist Party of Vietnam (CPV). In order to better attract foreign investment, Vietnam modified the Investment Law and the Law on Enterprises in 2020, with the goal of simplifying the foreign investment admission procedure and improving the business environment.

According to Vietnam’s General Statistics Office (GSO), the country’s GDP increased by 5.64% in the first half of the year 2021, up from 1.82% in the same time last year. The Asian Development Bank (ADB) predicts 6.7% GDP growth in 2021 and rises to 7.0% in 2022. With consistent growth over the years and resilience of the pandemic, Vietnam has emerged as a promising location for international investment in a variety of sectors, especially outsourcing software development.

Huge businesses, like Samsung and Apple, have invested in this market as a result of the Vietnamese government’s solid support. Vietnam is a rising star that compares favourably to other countries that are attractive locations for outsourcing work.

10 Great Benefits Of Outsourcing Software In Vietnam 7

Source: Asian Development Bank (ADB) 2021

9. Socio-economic stability

In Asia-Pacific, common outsourcing locations are frequently affected by insecurity. Consider the 2006 Thai coup, the Kashmir wars between Pakistan and India, and the Sri Lankan military’s battles with the Liberation Tigers of Tamil Eelam. In contrast, 95% of Vietnam’s population is ethnically Vietnamese and more than 80% of citizens do not identify with any specific religion, the country is generally free of ethnic/religious conflict (according to Minority Rights).

Deloitte 2020 stated that Vietnam has become an attractive investment destination for various sectors, from manufacturing, real estate, energy, retail, and construction, to arts, tourism, entertainment, and other services. It had one of the most secure environments for investment, given the conflicts in Iraq and the surrounding region. Likewise, Vietnam was ranked 12th as the safest among the Asia-Pacific Region by Global Peace Index 2020. In fact, Vietnam is a very stable country, which creates a hospitable business environment for outsourcing.

10 Great Benefits Of Outsourcing Software In Vietnam 8

Source: Global Peace Index 2020

10. Geographical Proximity

A connection with the team working on their project is essential when outsourcing software. If you decide to outsource a software to Vietnam for a project, you may easily fly there to check on progress. There are several direct flights from foreign destinations to Vietnam, particularly to Ho Chi Minh City and Hanoi. With secure and contemporary infrastructure, travelling inside Vietnam’s metropolitan regions has become simple.

You might orchestrate a 24-hour day of offshore software development with strong organization and management by strategically operating development teams throughout the day in different time zones. That is the strength of offshore outsourcing.


Vietnam is also well known for its workforce, especially in the IT sector. Vietnam is expected to be in the top three countries with the highest number of engineers in the next four years. Therefore, Vietnam provides lots of offshore tech startups for companies and organizations around the world to find and hire.

With our deep domain experts, we are proud to be your partner in transforming your business inside and out. Let us know about your retail business needs and we’ll come up with great strategies which are suited the best for you. Contact Kyanon Digital to get it done correctly and successfully.

5/5 - (1 vote)