Labour of Vietnam IT Industry in 2023 and Prediction for 2024

Vietnam IT industry in 2023 has undergone rapid transformation, emerging as a dynamic force that shapes the global digital landscape. At the heart of this evolution is a pivotal factor: its human resources. In this blog, Kyanon Digital will delve into the nuances of Vietnam’s software outsourcing companies, illuminating the driving forces, challenges, and anticipated trends for 2024.

1. Overview of Vietnam IT Labour in 2023

The existing workforce in the Vietnam IT industry comprises approximately 530,000 developers, with a predominant representation from the Gen Z (1997–2012) and Millennial (1981–1996) generations. These age groups seek an improved work-life balance, prioritize a healthy lifestyle, crave more information about the company, its products, and services, and aspire to actively engage in business processes, making impactful contributions to their personal development, the company, and society.

Labour of Vietnam IT Industry in 2023 and Prediction for 2024 1

Source: TopDev’s Vietnam IT Market Report 2023

IT professionals in Vietnam possess proficiency across diverse domains and excel in utilizing an extensive array of programming languages, frameworks, and technologies.

1.1. Software development

Their proficiency extends to programming languages such as Java, C++, Python, and JavaScript, along with expertise in frameworks like Spring, Django, and Angular for both web and mobile app development.

1.2. Mobile app development

They have experience with renowned frameworks and technologies such as React, React Native, Flutter, and Node.js. Vietnamese developers demonstrate the ability to create scalable and responsive online applications, as well as native or cross-platform mobile apps.

1.3. Data analysis and data science

They possess expertise in technologies and languages such as Python, R, SQL, and Hadoop. Their capabilities include handling large datasets, cleansing and transforming data, and extracting insights through statistical analysis and machine learning methods.

1.4. Cybersecurity

They are well-versed in security protocols, encryption algorithms, and vulnerability assessment techniques. Their expertise enables them to assist organizations in identifying and mitigating potential security risks, ensuring the integrity of their IT systems.

1.5. Artificial Intelligence and Machine Learning

Professionals from Vietnam actively engage with frameworks like TensorFlow and PyTorch, demonstrating the ability to develop AI-powered applications, deploy machine learning models, and undertake tasks such as natural language processing, computer vision, and predictive analytics.

1.6. Cloud Computing and DevOps

They have expertise in utilizing cloud computing platforms such as AWS, Azure, and Google Cloud. This includes deploying applications on the cloud, managing infrastructure as code, and implementing DevOps practices to streamline and automate software development processes efficiently.

The count of IT industry majors in Vietnamese universities is on the rise, and the annual number of graduates in this field continues to increase. With over 300 universities and educational centers dedicated to IT, notable institutions include Hanoi University of Science and Technology (HUST), Vietnam National University of Science, and FPT University. Together, these universities contribute to an impressive annual output of approximately 57,000 graduates in IT-related fields.

In order to enhance top-tier IT professionals to meet the demands of Vietnam’s digital transformation, the Prime Minister has endorsed a Proposal Project titled “Enhancing awareness, promoting skill universality, and cultivating national digital transformation human resources by 2025, with a vision towards 2030.” Consequently, there is a need to foster and back collaborative efforts between universities, research institutes, both domestic and foreign organizations, and businesses. This collaborative approach aims to elevate the quality of human resource training, establish coordinated programs with companies, and provide support for students during internships and practical experiences within organizations, businesses, and research institutes.

Given the statistics mentioned above, it becomes evident that Vietnam stands out as the optimal outsourcing choice for businesses. The thriving IT sector, combined with a substantial reservoir of skilled professionals, establishes a conducive atmosphere for engaging in collaborations and outsourcing software and IT projects to Vietnam. Additionally, global partners are increasingly acknowledging the expertise of IT service providers in Vietnam. The partnerships forged between prominent technology firms and local universities yield substantial benefits for both entities, ranging from nurturing fresh talents for the IT industry to advancing innovative technological solutions.

2. Salary of the Vietnam IT Industry

Labour of Vietnam IT Industry in 2023 and Prediction for 2024 2

Source: TopDev’s Vietnam IT Market Report 2023

Salaries tend to rise progressively with higher positions in the job hierarchy, illustrating that experience and seniority are correlated with increased compensation. Noticeable variations in salaries exist across different job levels. Leader/Manager and Director/Architect levels exhibit the highest salary ranges, mirroring the elevated responsibilities and expertise associated with these roles. Entry-level individuals can anticipate a salary ranging from $435 to $514, and after two years, the pace of salary growth appears to accelerate as developers acquire foundational knowledge and work experience.

Labour of Vietnam IT Industry in 2023 and Prediction for 2024 3

Source: TopDev’s Vietnam IT Market Report 2023

A parallel trend to the correlation between salary and years of experience is observed in the salary distribution across different job levels. Typically, salaries increase as individuals progress through the hierarchical levels. More than 70% of junior positions fall within the $600 to $1,000 range. The predominant salary range for mid-level positions is $1,100 to $1,500, garnering nearly 50% popularity. Senior-level roles encompass a broader salary spectrum, often ranging from $1,100 to $2,000. Approximately 10% of senior positions offer a salary of $2,500 or higher.

Foundational technology skill sets, including Java, Python, .Net, C++, and PHP, have consistently commanded high salaries over the years. Emerging high-tech skills related to cloud computing, AI (Artificial Intelligence), ML (Machine Learning), and DevOps are experiencing increased investment, resulting in higher salaries. This trend is driven by the significant impact of contemporary real-world applications in cloud computing, Generative AI, and modern software development processes.

3. Emerging Trend Jobs in Vietnam IT Industry

The rise of specific specializations within the Vietnam IT industry (e.g., cybersecurity, AI, blockchain).

3.1. Artificial Intelligence and Machine Learning

Machine Learning, the subset of AI, is also being deployed in all kinds of industries, creating a huge demand for skilled professionals. Mastering AI and machine learning will help you secure jobs like AI research scientist, AI engineer, AI architect, and machine learning engineer.

3.2. Cybersecurity

With the increasing frequency and sophistication of cyber threats, cybersecurity has become a top priority for organizations. Cybersecurity analysts, ethical hackers, and information security managers are among the most sought-after IT professionals.

3.3. Cloud Computing

The adoption of cloud technologies continues to grow rapidly. Cloud architects, cloud engineers, and cloud consultants are in high demand as businesses look to optimize their infrastructure and leverage the scalability and flexibility of the cloud.

3.4. Data Analytics and Business Intelligence

Organizations are increasingly relying on data-driven insights to make informed business decisions. Data analysts, business intelligence analysts, and data engineers play a crucial role in collecting, analyzing, and visualizing data to drive business growth.

3.5. Internet of Things (IoT)

IoT is revolutionizing the way devices and objects interact with each other. As IoT adoption increases, the demand for professionals skilled in IoT architecture, data analytics, and security will soar.

4. Predictions and Opportunities for IT Human Resources in 2024

Labour of Vietnam IT Industry in 2023 and Prediction for 2024 4

Source: TopDev’s Vietnam IT Market Report 2023

Despite a noticeable upward trajectory in industry salaries and benefits, consistently outperforming other sectors, forecasts suggest that Vietnam will confront an annual shortage of 150,000 to 200,000 programmers and engineers from 2023 to 2025. The survey emphasizes the sustained demand for Back-end programmers, Full-stack developers, and Front-end programmers, underscoring the critical need for strategic initiatives to bridge the talent gap in the IT sector.

The majority of employers in Vietnam (87.3%) prefer tech talents with academic backgrounds in technology (universities/colleges and above). Conversely, only 5.4% of employers are open to hiring candidates without a tech background for positions in the IT industry. Candidates with vocational education training or professional training certificates are favored by 16.4% and 13.6%, respectively. With the evolution of modern tech hiring practices, it is anticipated that individuals with non-tech backgrounds and alternative qualifications beyond academia will increasingly find opportunities to enter the IT labor market without encountering recognition challenges.

5. Conclusion

The Human Resources landscape within Vietnam’s IT industry paints a dynamic and compelling picture of talent, potential, and challenges. As we gaze into the future, a promising yet demanding path unfolds for this industry. Emerging domains such as artificial intelligence, data science, and cybersecurity are poised to take the lead. Simultaneously, besides enhancing professional skills, programmers must also prioritize soft skills such as critical thinking, effective communication, time management, and proficiency in foreign languages to align with market requirements.

For more in-depth information about the IT Outsourcing market in Vietnam, feel free to explore our website.

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