Vietnam’s IT industry has emerged as a dynamic and rapidly expanding sector, attracting global attention for its steady growth and endless potential. Over the past few decades, Vietnam has transformed from an agricultural-based economy to a technology-driven powerhouse. With a young and tech-savvy population, a favorable business environment, and strong government support, Vietnam’s IT workforce has become a vital player in the global tech landscape. In this blog, Kyanon Digital will help you explore the factors behind the growth of Vietnam’s IT industry, its accomplishments, challenges, and the vast potential that lies ahead.
Vietnam’s IT industry has gained global recognition for its capabilities and potential. Multinational corporations and tech giants have taken notice, establishing their presence in Vietnam through research and development centers, regional headquarters, and strategic partnerships. Such collaborations have not only expanded the country’s IT landscape but have also facilitated knowledge transfer, allowing local talent to learn from the best in the industry.
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1. Government Initiatives and Support
One of the key reasons behind Vietnam’s success in the IT industry is the government’s unwavering commitment and support. The government has implemented numerous policies to foster the growth of the sector, including tax incentives, investment encouragement, and streamlined bureaucracy for tech-related businesses. Additionally, initiatives to promote research and development, and strategic partnerships with international organizations, have further boosted Vietnam’s IT ecosystem. According to Mr. Park JongHo – CEO, TopDev – one of the biggest IT recruitment companies in Vietnam has commented that: “Vietnam has a promising IT human resource in terms of quality and quantity as well as potential market and economic growth. The important thing lies in the plans and strategies on investment, development and orientation for this resource to promote the National socio-economic goals in the context of globalization. This is really a big topic and a long way to go for all of us, but we believe that CHANGE will make big things happen. And to create change, each party can contribute in its own way. All for the talent-centered economic development.” According to statistics based on TopDev’s Report on the IT Market in Vietnam, the demand for human resources in the Information Technology (IT) sector in Vietnam has been continuously increasing.2. Revenue by segment of IT services in Vietnam
According to the report from Statista, the revenue of each segment in the IT services in Vietnam is continuously increasing, especially in the IT outsourcing segment. The influx of foreign investment has brought numerous opportunities for Vietnam’s IT job market, making it more vibrant than ever before. Vietnam is attracting major IT companies from around the world and the region, leading to increased recruitment and the development of skilled engineering teams for product and service innovation.3. Young and Talented Workforce
Vietnam has a high advantage due to its golden population structure, with 69% falling within the working-age group. The Vietnamese education system places a strong emphasis on science, technology, engineering, and mathematics (STEM) subjects, producing a highly skilled and adaptable workforce that is ready to take on challenges in the tech arena. According to DxReports and FPT Digital’s recent “Digital Workforce Development Strategy,” Vietnam has nearly 400,000 information technology engineers and over 50,000 IT students graduating each year. The proportion of information technology workforce to the total national labor force in Vietnam is estimated to be 1.1% out of a total of 51 million workers. However, Vietnam is expected to increase this proportion to 2% in the future, along with a focus on enhancing technical quality and expertise in the coming time.4. Labor Costs and Favorable Business Environment
Vietnam’s competitive labor costs have been a magnet for foreign investors looking to outsource IT projects. Compared to other countries in the region, the cost of hiring skilled IT professionals in Vietnam remains relatively lower, making it an attractive destination for software development, IT outsourcing, and other tech-related services. Moreover, the government’s efforts to improve the business environment and reduce red tape have further enhanced the ease of doing business in the country.
Vietnam’s IT industry has gained global recognition for its capabilities and potential. Multinational corporations and tech giants have taken notice, establishing their presence in Vietnam through research and development centers, regional headquarters, and strategic partnerships. Such collaborations have not only expanded the country’s IT landscape but have also facilitated knowledge transfer, allowing local talent to learn from the best in the industry.
