Vietnam – A new leading destination for Software Development.

Vietnam has emerged as a premier destination for software development in the Asia-Pacific (APAC) region, earning the title of “A small but mighty powerhouse” by Forbes. With exceptional progress in education, a stable economy, tech literacy, and effective remote development capabilities, Vietnam is setting a new benchmark for the software development industry in APAC.

Thriving Tech Ecosystem.

Vietnam’s tech industry is thriving and has been experiencing exponential growth. In 2023, Vietnamese tech startups secured over $1.5 billion in venture capital funding. This influx of investment demonstrates the confidence and support from investors, solidifying Vietnam’s position as a tech powerhouse.

According to the e-Conomy SEA 2023 report by Google, Bain & Company, and Temasek, Vietnam’s digital economy is projected to reach $50 billion by 2025, making it the fastest-growing market in Southeast Asia. The digitalization of various industries is expected to reach a minimum of 11% and contribute 20% to the country’s GDP. This is a testament to the innovative spirit and hard work of the Vietnamese people.

Digital economy GMV growth vs. GDP growth (2023-2025)s

Highly Skilled & Competent Workforce.

Vietnam’s software development industry is blessed with a young and talented workforce that is renowned for their proficiency in software development. The country’s education system places a strong emphasis on STEM fields, resulting in a significant number of skilled graduates annually. This vast talent pool ensures a steady supply of qualified professionals for the software development industry, allowing companies to access top-notch expertise.

Vietnam’s proficiency in the English language among the younger generation contributes to its appeal as a software development destination. In the EF English Proficiency Index 2023, Vietnam ranked 7th in Asia and 58th globally, which is a testament to the hard work and dedication of the Vietnamese people. This level of English proficiency, combined with the ability to adapt to diverse business cultures, facilitates effective communication and collaboration with international clients and partners.

In addition, Vietnamese developers’ competency is highly regarded globally, consistently ranking among the top developers worldwide, making the Top 10 in World Rank of Best Developers Survey. In the 2023 Global Software Outsourcing Trends and Rates Guide by Accelerance, Vietnam was listed as one of the leading software outsourcing destinations in Southeast Asia, solidifying its position as a top choice for businesses seeking software development services.

Time Zone Advantage & Cultural Compatibility.

Vietnam’s strategic location within the APAC region offers distinct advantages for businesses. Its GMT+7 time zone aligns well with major global business centers, enabling real-time communication and agile project management around the clock.

With its emphasis on hard work, loyalty, and dedication, Vietnamese culture aligns ideally with the expectations of remote software development teams. Vietnamese individuals are known for being extremely hardworking, dutiful, and responsible at work. These cultural values contribute to the development of a positive work ethic and strong team dynamics, both of which are crucial for successful remote collaboration.

Loyalty and dedication foster a sense of stability and continuity among software development teams, resulting in increased productivity, knowledge sharing, and the formation of solid professional connections. This cultural foundation, combined with the technical talents and competence of Vietnamese developers, makes them highly valuable assets for firms seeking reliable and dedicated team members for remote software development.

Competitive Labor Costs.

The cost of hiring skilled software developers in Vietnam remains very competitive. According to a 2023 report by Accelerance, software development rates in Vietnam are approximately 30-60% lower than in Australia, the United States, and Western Europe. This cost advantage allows businesses to optimize their budgets while maintaining quality outputs and maximizing their return on investment.

2023 Global OutsourcingRates

Promising Government Support & Opportunities for Wholly Foreign-Owned Enterprises (WFOEs).

Vietnam’s government is actively supporting the software development industry and fostering digital transformation through a wide range of initiatives. These include tax incentives (with preferential rates for 15 years), streamlined procedures, and investment protection for foreign companies, all aimed at creating a favorable business environment. The government has set ambitious goals for Vietnam, aiming to rank among the top three ASEAN countries and the top 60 worldwide in the World Bank’s business environment category by 2030.

The “Made in Vietnam” initiative, launched in 2019, has seen remarkable growth, with the ICT industry’s total revenue reaching $165 billion in 2023, marking an 8.7% year-on-year increase. This is a testament to the hard work and dedication of the Vietnamese people.

Moreover, Vietnam warmly welcomes the establishment of Wholly Foreign-Owned Enterprises (WFOEs) by international businesses. The registration process for WFOEs has been streamlined, significantly reducing the average setup time to as short as 20 days. Notably, most industries do not have minimum capital requirements, further enhancing the ease of entry for investors.

Political Stability & Effective Pandemic Management.

Vietnam is one of the most politically stable countries in the region, featuring a one-party state system. Moreover, the country has demonstrated remarkable resilience in managing and recovering from the COVID-19 pandemic. These factors contribute to a conducive environment for businesses, providing stability and confidence in the face of challenging circumstances.

In summary, Vietnam’s software development industry is experiencing remarkable growth and positioning itself as a leading contender in the global software product engineering market. If your business aims to enhance its engineering capabilities and stay at the forefront of the digital transformation wave, Vietnam should be a top consideration. By establishing expert remote engineering teams in Vietnam, you can expect impressive returns on your investment.

We Are Here For You

We are thrilled to be your trusted technology partner with over 10 years of experience in the APAC region and specifically Vietnam. We take pride in our ability to offer best-in-class software development services to help you hasten your digital transformation.

Our core services in APAC include Software Product Engineering and Build Operate Transfer (B.O.T.) Model. We combine agile methodologies, advanced technology, collaborative tools, and multidisciplinary teams to develop web, mobile, and enterprise apps for our clients worldwide. With our custom software and product development centers in Vietnam, we can scale your business and provide the engineering resources you need to succeed. We set up the infrastructure, integrate your company culture, and most importantly, share our experience in the Vietnamese market!

Whether you are looking to accelerate your digital transformation or drive innovation in your industry, we have the expertise and experience you need.

Contact us for more information or to set up a meeting immediately!