This is a 5-minutes handbook for all CEOs and CTOs who want to learn objective and up-to-date information about software development outsourcing to Vietnam:
- What you can expect when working with Vietnamese developers. Their price? Commitment? Quality of code?
- What domains of technology, framework, language, and industry are Vietnamese best at?
- How to find the top 1%.
- What to prepare for before hiring Vietnamese developers.
What makes Vietnam an attractive IT outsourcing destination?
Vietnam at a glance
- Technology hubs in Vietnam: Hanoi (Capital), Ho Chi Minh City.
- Official languages: Vietnamese, a majority of citizen learn English.
- Currency: VND
- Time zone: GMT+7
- Number of developers: nearly 550,000
- Ease of doing business in the country: B (Ranking from best to worst as A1, A2, A3, A4, B, C, D, and E)
- Political stability: 0.0 (Scoring from –2.5 (lowest) to 2.5 (highest))
Other promising things to note:
- With 55% of developers are middle to senior level, Vietnam guarantee a large pool of experts to handle the complexity, and scalability needs of every IT projects.
- Their government is actively creating a dynamic work market for IT and providing education on computer science to build a talented pool.
- Vietnam has great political stability, and a work culture evolve around responsibility. This benefits long-term projects, minimizes external risks, and creates a seamless process for you.
Foreseeing this potential growth of IT workforce, many tech giants and top enterprise has already outsourced or build their development center in Vietnam, notably IBM, Microsoft, Accenture, Sky Mavis, and many more.
Of course, you don’t want to miss out. With their competitive rate and the help of remote work tools, Vietnam IT outsourcing market is more approachable than ever.
Comparing Vietnam with other outsourcing regions
With the continued expansion of the global outsourcing market, most companies seek cost-effective alternatives without compromising quality. In this respect, software outsourcing to Vietnam has cropped up as a formidable competitor against established ones like Europe, South America, and India. Let’s see where Vietnam is standing among them.
Vietnam vs Europe (Poland/Ukraine)
In general, Europe, particularly Poland and Ukraine, can be proud of highly skilled personnel, especially in UI/UX design, mobile app development and cloud computing. Nevertheless, they have to deal with:
- Growing IT shortage: Poland have about 400,000 developers in 2023, and Ukraine has 200,000, meanwhile Vietnam is home to around 550,000 developers.
- High labor costs: As European developers take $50 to $80 per hour, Vietnam hourly rate is 2x to 3x competitive, from $20 to $40 based on experience.
Vietnam vs South America (Mexico/Brazil)
Thanks to their proximity and cultural similarity, Mexico and Brazil mostly serve North America market.
While having the benefit of timely support and seamless communication, those regions rank lower than Vietnam in software development, with a lack of expertise for Blockchain and Data analytics.
Additionally, they possess a higher price than Vietnam, starting at $30 per hour. If distance is not your priority, IT outsourcing to Vietnam can be more cost-effective with higher to the same level of quality.
Vietnam vs other Asian regions (India, Philippines)
Despite being the largest IT talent pool in the world, India has a disparate skill level. You can easily hire them for a cheap rate of $15 per hour, but quality is not guaranteed. Meanwhile, the Philippines has a rather small pool of talent, and maintaining consistency in quality is an issue here, too.
Software outsourcing to Vietnam offers a better balance. At competitive prices, similar to India and the Philippines, Vietnam leads the way with its quality output:
- They are known for their reliable and efficient solutions, ranking higher than India and the Philippines.
- Vietnam’s adaptability with new technologies, like blockchain, data analytics, and fintech, strengthens its competitive edge in the global outsourcing market.
What will you get by software outsourcing to Vietnam?
Vietnam earns their place in the Outsourcing market. But what value can they bring to a table that is different from other regions?
1. Pools of specialists from junior to senior
We have talked about the large IT talent pool of Vietnam many times. But not enough about its diversity.
Vietnam has a great balance between young talent and qualified professionals (middle and senior developers account for nearly 60%), handling simple to complex tasks.
More than 400 universities and educational institutions in Vietnam are teaching programming and computer science. They provide about 57,000 tech graduates annually, maintaining a consistent talent inflow that is estimated to surpass many European, Asian, and South American countries.
Another good thing? Technology is not a male-dominated industry in Vietnam, as women join the force being project managers, testers, QAs, business analysts, designers, developers, and data analytics.
At Synodus, we have a team of top 1% developers in Vietnam
2. Vietnamese developers’ best domain
To be ranked as the top software developers in the world by Hackerrank, GitHub, Coursera and Pentalog, Vietnamese developers sure have in-depth technical expertise. Some key domains in which Vietnam is faring well include:
- E-commerce: From building online websites to a full-fledged store on Shopify or Magento, Vietnam has a great team of designers and developers to help you create a scalable and user-friendly marketplace.
- Fintech: The country has a growing scene for Fintech with innovators such as MoMo, Timo, ZaloPay, VNPay, and multiple digital banking apps. Their developers can leverage those daily experiences into building and managing Fintech solutions seamlessly and effectively.
- Blockchain: Vietnamese developers have established themselves as top talents in Web3, most known as the creator of the leading NFT game Axie Infinity. Additionally, they work with a wide range of Blockchain solutions, including NFT, games, cryptocurrency, asset tokenization, smart contracts, DeFi, trading platforms, wallets, etc.
- Data analytics: Vietnamese developers with exceptional mathematical and analytical thinking abilities have shown significant promise in data analytics. This positions them well for complex data analysis, building data structure and warehouse, and problem-solving roles.
- Backend development: If you are thinking about software outsourcing to Vietnam, consider Java, PHP, Python, JavaScript, .NET, and C# as these are their best proficiency. Such developers have gained a great name for providing fast-tracked and scalable systems in large enterprise applications.
- Mobile app development: Vietnam has emerged as a thriving hub for mobile app development, with developers proficient in both native (iOS and Android) and cross-platform frameworks like React Native and Flutter. These developers craft intuitive and high-quality apps.
3. High quality with compelling rates
Not just quality, their competitive rate is another advantage many clients love. Software development costs in Vietnam are around 30-50% less than the average rate and can ensure significant business savings. You can easily hire a quality expert for 20 to 40$ per hour.
Additionally, they adhere to heavy quality assurance processes and best industry practices that ensure the final products meet international standards. This has made IT outsourcing to Vietnam more reliable, where businesses can get exceptional value for their investment.
4. Reliable work ethics and team-oriented mindset
Vietnamese people are hardworking and very collaborative. They love the team mindset, emphasize open communication and respect for each other, encourage innovation, and any challenges arising during the development process will be promptly resolved.
This working style is best seen in Synodus. Unlike other traditional ODCs, we combine Agile and Waterfall for an interactive yet controlled development process. This allows us to collaborate with clients better, deliver faster, and avoid cost overruns.
5. A strong ground for your projects
Vietnam offers a politically and economically stability that support long-term partnership and ease of doing business. The government supports the IT industry with policies involving tax incentives to achieve overall infrastructure development and growth.
The infrastructure is up-to-date, with high-speed internet, reliable data centers, and the latest technologies. Many vendors work with the 24/7 model, which is round-the-sun support to clients around the globe. In addition, many startups and innovation hubs continue to give birth to a vibrant and burgeoning IT ecosystem.
Besides, Vietnamese professionals are also gradually improving their level of English. This point makes communication even better and reduces misunderstandings.
Average rate of Vietnamese developers per level & position
Ready to outsource software development soon in Vietnam? Here is the average rate of their developers to estimate your budget.
| Experience level | Monthly salary | Hourly rate |
|---|---|---|
| Junior/Entry Level (0-2 years) | $500 – $1,000 | $10 – 15/hour |
| Mid-Level (2-5 years) | $1,000 – $2,000 | $15 – 25/hour |
| Senior (5-8 years) | $2,000 – $3,000 | $25 – 35/hour |
| Tech Lead/Manager (10+ years) | $2,500 – $4,000+ | $30 – 50/hour |
Although experience level is a determining variable in the salary level, the type of development role also plays a significant part. For example, the salaries of front-end developers are normally different from those of either back-end or full-stack developers:
| Role | Experience level | Monthly salary |
|---|---|---|
| Front-end developer | Junior | $500 – 1,000 |
| Mid-level | $1,000 – 1,800 | |
| Senior | $1,800 – 2,500 | |
| Back-end developer | Junior | $800 – 1,200 |
| Mid-level | $1,200 – 2,000 | |
| Senior | $2,000 – 3,500 | |
| Full-stack developer | Junior | $800 – 1,200 |
| Mid-level | $1,000 – 2,500 | |
| Senior | $2,500 – 4,000 | |
| Mobile developer (iOS) | Junior | $500 – 1,000 |
| Mid-level | $1,000 – 2,000 | |
| Senior | $2,000 – 3,500 | |
| Mobile developer (Android) | Junior | $500 – 1,200 |
| Mid-level | $800 – 1,500 | |
| Senior | $1,500 – 3,000 |
Where and how to find a Vietnamese IT outsourcing company?
If you’re looking for Vietnamese developers or an outsourcing partner, here are a few effective platforms you could check:
1. Google Search
Google is probably the most common starting point for such a search. Using keywords like “software outsourcing Vietnam” or “IT outsourcing companies in Vietnam”, you will quickly discover everything from local startups to large enterprises offering your requested IT services.
Pros:
- Vast database of companies: Google Search indexes millions of websites, giving you access to a wide range of companies. This broad scope helps in discovering lesser known but highly capable firms.
- Custom queries: You can narrow down your searches to fit specific needs, such as website development or AI integration.
Cons:
- Overwhelming volume: The results from Google can overwhelm you by having to weed through irrelevant or low-quality options.
- No native reviews: You must cross-check the company’s reputation and performance with external reviews or customer testimonials.
- Manual vetting is required from your side: Unlike dedicated platforms, Google won’t provide you with pre-vetted listings; hence, a little time in research is required from your side.
2. LinkedIn
LinkedIn is a very strong tool for insights about companies and particular developers. Searching in the network for IT outsourcing businesses in Vietnam, one can easily look through their profiles and assess their qualifications, endorsements, and recommendations.
At the top of the LinkedIn site, search bar type in keywords: “software development outsourcing”, “IT outsourcing”, or “technology services”. Add to these keywords Vietnam to help narrow your search query: “software outsourcing Vietnam”.
You can filter exact location to Vietnam or cities like Ho Chi Minh City, Hanoi, or Da Nang. You can further refine by Industry or Company size.
Pros:
- Verified profiles: Many IT companies and profiled developers on LinkedIn might be having full detail like previous projects, testimonials, and recommendations.
- Direct contact: one can easily reach representatives of the company or the developers themselves.
- Professional credibility: You can check out their networks, certifications, and endorsements.
Cons:
- Not all companies are active: Some may not update their LinkedIn pages regularly.
- Smaller focus on reviews: Unlike other pure outsourcing platforms, LinkedIn itself doesn’t really let people review one another, so looking for client testimonials might be hard to do.
3. Clutch
Clutch.co is a business-to-business ratings and review platform designed to help businesses find and evaluate service providers in one of the many industries, especially in technology.
Exploring outsourcing firms on Clutch is similar to how you search for them on LinkedIn. Using location filters, size, expertise, and even hourly rates makes it easier to find a suitable company that can match one’s project requirements.
Pros:
- Verified reviews: Clutch would focus more on the reviews provided by the clients to let one judge the performance of the company.
- Portfolio: Most of the listed companies on Clutch have showcased their case study or sample projects they have delivered.
- Company ranking: They provide a ranking of each company to help you navigate your decision.
Cons:
- Less developer interaction: Use for B2B deals rather than hiring the freelancer directly.
Challenges of software outsourcing to Vietnam
Aside from all the pros, working with Vietnamese developers will stumble certain challenges. Learn how to navigate them.
Time zone differences
This will make it more difficult to schedule meetings or when you need instant support, especially if you are in Europe or American. If you are based in Australia, Singapore, Korea, or Japan, these time differences aren’t a big deal, as there’s only a half-day gap.
Solution: Discuss with them about their willingness to support outside work hours, or do they offer flexible work hours around your project. Agree with your vendor on a working space, either Slack or Microsoft Teams, for daily to weekly updates.
At Synodus, we also offer around-the-sun model to support clients from the US or EU during critical times of a project.
Cultural differences
Cultural diversity can breed misconceptions about certain aspects, such as communication styles, work ethics, or expectations. Certainly, the workforce in Vietnam is diligent and highly technical; however, there could be some norms different from Western practices.
Solution: Not all Vietnamese companies are the same. Discuss with them to see if there’s alignment in the business mindset and development approach. Additionally, encouraging both teams to engage in active communication and sharing knowledge is the key.
A tip is to find a vendor that has worked with clients from your country. For examples, Synodus have work with clients in Singapore, Korea, Canada, USA, Europe, Australia, and UAE, so we can navigate these cultural differences for a successful project.
Data security concerns
Outsourcing software development in Vietnam often involves sharing sensitive data, which can raise concerns about its protection. Companies might hesitate to trust external vendors with confidential information, mainly when data security regulations differ between countries.
Solution: Ask your vendor which security protocols, intellectual property protection, and privacy standards they follow. Ask if they offer an NDA signing, it would be a plus if they do.
Wrapping up
In short, software outsourcing to Vietnam is the ideal combination of innovation and talent in the most cost-effective manner. Solid experience with emerging technologies and the continuously growing pool of skilled developers will turn Vietnam into a cost-efficient destination and an important strategic partner for long-term growth in the global outsourcing market.
