Vietnam has transformed from a rising outsourcing hub into a mature, innovation-driven tech ecosystem trusted by global enterprises. Whether you’re expanding engineering capability, accelerating product delivery, or optimizing budgets, the country offers an unmatched blend of talent, cost efficiency, and long-term scalability.
This guide breaks down why Vietnam in 2026, how to build and manage your offshore development team, and what to expect.
Key takeaways
- Vietnam is a leading destination for building offshore development teams thanks to cost efficiency and fast IT market growth.
- The country offers a large, skilled tech talent pool and strong capabilities in modern technologies.
- A mature, business-friendly ecosystem supports long-term offshore software development.
- Clear requirements, the right engagement model, pilot testing, and solid management practices are key to success.
- Kyanon Digital is a trusted partner for building and scaling offshore dedicated teams in Vietnam.
Further reading:
- Offshore Developer For Hire
- Top 10 Offshore Software Development Companies in Vietnam
- Best Practices for Manage Offshore Software Teams Effectively
Why building your offshore development team in Vietnam in 2026?
Vietnam has emerged as a leading destination for offshore software development. In 2026, businesses can leverage its cost efficiency, growing talent pool, and mature IT ecosystem to build high-performing offshore development teams that scale with their needs.
Exceptional cost efficiency & market growth
Vietnam offers exceptional cost efficiency and strong market growth, making it a high‑ROI destination for building an offshore development team. Vietnam is now one of the world’s leading IT outsourcing hubs. Statista reports that the country boasts the second-fastest-growing IT outsourcing market, projected to achieve a CAGR of nearly 17% between 2023 and 2028. Outsourcing and software export services are reported to contribute a significant portion of the country’s export revenue, underscoring Vietnam’s credibility as a global outsourcing hub.
These dynamics deliver substantial cost savings for businesses compared to high‑cost markets, while giving access to a large technical workforce.
Large & growing technical talent pool
Vietnam also maintains a large and growing technical talent pool. As of late 2024, there were nearly 1.26 million ICT workers employed across approximately 73,788 digital-technology enterprises, indicating broad demand and capacity in the sector. (VietnamNews)
The continually growing number of technology enterprises and employees supports scalable, long-term growth for offshore dedicated teams.
Strong technical capabilities & versatility
The country’s technical capabilities and versatility stand out. Across hundreds of firms ranging from startups to large-scale vendors, Vietnamese developers are increasingly proficient in modern technologies, including cloud computing, data engineering, AI/ML, full-stack web and mobile development and many follow global best practices such as agile methodologies, coding standards, and quality assurance.
This makes Vietnam a viable option not only for cost-based outsourcing but also for high-quality, complex software projects.
Rapidly growing IT services market & business‑friendly environment
Vietnam’s maturing IT services market and business-friendly environment further strengthen its appeal. The broader ICT sector is forecast to generate approximately US$169.3 billion by 2025 (Hanoi Times). The presence of tens of thousands of digital-technology companies, continuous growth in registered firms, and steady investment into infrastructure and services create a stable ecosystem that supports both vendors and clients (VnEconomy)
This environment underlines Vietnam’s potential for long-term, scalable offshore software development outsourcing and dedicated-team operations.
Real examples & market signals
Several major multinationals maintain large software development or R&D centers in Vietnam. NVIDIA launched its first Vietnam research and development center, signaling its confidence in the country’s bright artificial intelligence future. This translates to real-world references for offshore and dedicated‑team models leveraged across complex products and long-term engagements.
Local Vietnamese outsourcing providers maintain steady growth. For instance, some firms report annual growth rates exceeding 10%, even as demand for advanced services like cloud, AI, and mobile solutions grows.
According to statistics from the Ministry of Science and Technology, Viet Nam currently has 74,000 enterprises operating in the information technology sector with more than 1.2 million employees.
These data points and real‑world commitments demonstrate that Vietnam isn’t just a cost‑play: it’s a mature, high‑potential ecosystem capable of sustaining long-term, high‑quality offshore software development.
How to build and manage your offshore development team
With this backdrop, the roadmap to building your offshore development team in Vietnam remains largely the same, but now backed by market realities.
|
Step / Focus Area |
Key Actions & Recommendations |
Explanation / Benefits |
|
Define Clear Requirements & Scale Expectations |
Identify required roles, skills, team size, timelines, and budget. Plan scalable growth: start small, expand to larger squads (10, 20, 50+). | Vietnam’s large talent pool and annual 55,000–60,000 graduates allow growth without hitting a talent ceiling. |
| Choose the Right Engagement Model: Vendor-led vs. Own Entity | Decide between partnering with a local vendor or establishing a wholly-owned entity. |
Both models are viable. Major global firms like Samsung, Microsoft, Intel successfully operate in-country using either approach. |
|
Evaluate and Trial Before Fully Committing |
Run a paid pilot project to test code quality, communication, management rhythms, and cultural alignment. | Helps mitigate risks, ensures the team meets quality and collaboration standards before scaling long-term. |
| Ensure Compliance & On-ground Infrastructure | Engage local legal advisors, HR providers, and infrastructure (offices, coworking, cloud, broadband) to meet labor and regulatory requirements. |
Vietnam’s mature ecosystem supports offshore teams with proper compliance, legal, and operational infrastructure. |
|
Apply Rigorous Management & Communication Practices |
Use project management tools, Agile methodologies, and clear documentation. Establish regular reporting and collaboration rhythms. |
Ensures offshore teams achieve results comparable to in-house Western teams, bridging time-zone and cultural gaps effectively. |
Pros and Cons of building offshore development team in Vietnam
Before committing to an offshore development team in Vietnam, it’s important to weigh the advantages and potential challenges. Understanding the benefits, such as cost efficiency, talent depth, and technical versatility, alongside possible hurdles like communication gaps or niche skill scarcity, helps businesses make informed decisions and plan for long-term success.
Pros
- Cost savings & scalability: market growing ~12% CAGR; outsourcing revenue already near USD 700M and rising rapidly.
- Large, replenished talent pool: 500,000+ developers, 55–60K graduates per year.
- Proven track record: major global firms operate R&D and development centers in Vietnam.
- Technical versatility: strength across web/mobile, cloud, AI/ML, data, full‑stack, etc.
- Mature ecosystem: abundant vendors, support services, legal/HR infrastructure, digital‑economy growth.
Cons & Mitigations
- Potential language/communication gaps: though many firms offer bilingual engineers and project managers, effective onboarding and structured communication remains important.
- Senior-level scarcity in niche fields: for highly specialized or senior positions, you may face longer hiring times; plan for overlapping hiring or gradual ramp‑up.
- Time‑zone and cultural differences: like any offshore setup, needs governance, clear processes, and overlap hours.
- Quality variability across providers: selecting a vendor based on portfolio, reviews, certifications, pilot projects is critical to avoid poor outcomes.
Kyanon Digital – Your reliable partner for offshore development team in Vietnam
When you choose to build an offshore development team in Vietnam, a top‑tier partner can make all the difference. That’s where Kyanon Digital shines. With over a decade of experience, a team of 500+ IT experts, and a track record of delivering scalable, high‑performance software for global clients, Kyanon Digital combines engineering excellence, agile practices, and a human‑centric design philosophy.
Kyanon Digital supports flexible engagement models, from full software outsourcing to dedicated teams and staff augmentation, making it easy to tailor your offshore setup to your project needs and growth plans.
Case study: Scaling Accenture’s Digital Capabilities with Kyanon Digital’s Dedicated Software Engineers
Accenture partnered with Kyanon Digital to quickly scale its software engineering capacity by leveraging a dedicated offshore team in Vietnam. Kyanon provided carefully selected engineers trained in modern technologies and agile practices, ensuring seamless integration with Accenture’s existing workflows.
The collaboration enabled Accenture to maintain high-quality delivery, optimize costs compared to building in-house teams, and flexibly expand capacity on demand, demonstrating the effectiveness of a well-managed offshore dedicated team model for enterprise-scale projects.
Read the full case study at: Scaling Accenture’s Digital Capabilities with Kyanon Digital’s Dedicated Software Engineers
Conclusion
Building an offshore development team in Vietnam in 2026 offers businesses a unique combination of cost efficiency, access to a large and versatile talent pool, and a mature, innovation-driven IT ecosystem. By carefully defining requirements, selecting the right engagement model, ensuring compliance, and applying rigorous management practices, companies can scale high-performing teams that deliver enterprise-grade results.
Partnering with a trusted provider like Kyanon Digital further ensures seamless integration, technical excellence, and long-term success, making Vietnam not just a cost-effective choice, but a strategic destination for sustainable offshore software development. Contact Kyanon Digital today for building success with your offshore development team.
