Vietnam has emerged as a significant IT outsourcing destination

Vietnam has emerged as a significant IT outsourcing destination

The IT outsourcing industry in Vietnam is still growing with a relatively short history (roughly 20 years) but the country has proved its inherent capabilities and becomes prominent in the sector. Over the past few years, the IT industry in the country has witnessed impressive growth and has become a key industry in the country’s overall economy. Vietnam has traditionally been the most important partner with Japan and now the name has become more popular with businesses seeking IT outsourcing providers globally.

Why has Vietnam become an attractive and prominent destination for IT outsourcing services? 

Let’s look at some of the factors that give Vietnam competitive advantages to become the destination of choice when it comes to IT outsourcing services. 


The biggest benefit of outsourcing to Vietnam is the reduced costs, which is one of the main purposes when businesses outsource IT services. Vietnam’s labor cost is relatively inexpensive and effective, making it an appealing choice for all businesses all over the world. Despite a yearly increase in its average wage rates, the new salary range for experienced engineers in 2021 is around $1,300, it is considered more competitive compared to other countries providing IT outsourcing services. According to CIO magazine, the cost of IT outsourcing in Vietnam is 90% lower than that in the US and can save up to 50% and 30% compared to China and India accordingly. 

High-quality service

Cost-competitiveness is not the only reason that makes Vietnam a preferred destination for IT outsourcing. The consistently high quality offered by Vietnamese firms has given the country the reputation to remain in the top position in the sector. Vietnamese IT companies have now constantly improved on quality levels

and invested a lot in state-of-the-art technology to deliver the highest quality outsourcing services and maintain competitiveness amongst other competitors. 

Young population with an increasing number of skilled software developers

There are approximately 72 million Vietnamese who belong to the working-age population, which includes over 400,000 IT engineers by 2021. The IT talent pool increases by 50,000 IT students graduating each year from 153 training institutions. In addition, the majority of Vietnamese IT developers are millennials, a generation with working attitudes and a can-do mindset. The young population is also recognized as being highly motivated, innovative, and resourceful.

English proficiency

Language can be a barrier when it comes to working with foreign partners in the IT industry, but it is not a big challenge for the Vietnamese IT workforce. Thanks to Vietnamese policies that commit to expanding the English language to meet the requirements of skills-intensive jobs in high-tech employment sectors, English is now a compulsory subject at every school in Vietnam. Therefore, it is the second most used language in Vietnam and clients can secure an articulate and consultative workforce with good verbal and written English.

Good business environment

The Vietnamese government has continuously reformed its business regulations that favor outward-looking and market-oriented economics to provide an efficient, transparent, and business-friendly environment for investors and business enterprises. Also, Vietnam has increasingly improved its international economic integration since becoming an APEC member in 1998 and a WTO member in 2007.

Fast, stable economic growth

Regardless of the impact of the Covid 19 pandemic, Vietnam is one of the fastest-growing economies in Southeast Asia. Thanks to its solid foundations, the economy has proven resilient through different crises, the latest being COVID-19. Vietnam was one of only a few countries to post GDP growth in 2020 when the pandemic hit. GDP growth slowed down to 2.58 percent in 2021 due to the emergence of the Delta variant but is expected to rebound to 5.5 percent in 2022.

To sum up, Vietnam has witnessed tremendous development in the IT outsourcing sector over the past few years and emerged as one of the lucrative markets for IT outsourcing in the global tech community thanks to its strong educated population, competitive labor costs, and rising economy.

About the author
Loan Nguyen
I'm dedicated to reading and writing: read to enrich knowledge and write to help readers understand knowledge in my own words.


Want to Hire IT Resources
or you're planning a project? Contact us!

  • WhatsApp: +84 8666 39497
  • Email:
  • Tel: +84 8666 39497