More companies in Singapore, Japan, and Korea are hiring software teams in Vietnam. The reason is straightforward: you get solid engineers at a fraction of what they cost in London, Tokyo, or Sydney.
How big is Vietnam’s tech sector?
Vietnam’s IT industry grows about 8-10% a year, according to the Ministry of Information and Communications. Ho Chi Minh City and Hanoi have thousands of software companies. Some are small studios. Others build systems for global enterprises.
STEM investment pays off: roughly 50,000 IT graduates enter the workforce each year. That talent pool is now deep enough to compete with India and the Philippines on real projects, not just price.
Why Vietnam, specifically?
A few things make Vietnam worth looking at:
- Technical skills: Engineers here work with React, Node.js, Python, Go, Flutter, and most modern stacks. Many have shipped production systems for clients in Japan, Singapore, and the US.
- Rates: Senior engineers run $25-40 per hour. In Western markets, the same caliber costs $60-150. The gap isn’t about quality. It’s about cost of living.
- Working style: Vietnamese developers tend to be pragmatic and willing to adapt. English proficiency in tech roles is decent and improving.
- Time zone: GMT+7 overlaps with Singapore, Tokyo, and Seoul business hours. You can get on a call the same day, not wait 12 hours.
Three ways to hire
Most companies pick one of these:
Dedicated team: A full-time squad that only works on your stuff. Good for products that need long-term domain knowledge. Minimum commitment is usually 2-3 months.
Fixed price: One price for a defined scope. Works when your requirements are clear and unlikely to change much.
Time and material: You pay for actual hours. Good for prototypes, R&D, and projects where the scope keeps moving.
How to pick a partner
This is where things go wrong for most companies. A low hourly rate means nothing if the code is bad or communication is poor. When you evaluate a Vietnamese software firm, look at:
- What they have actually built. Not their marketing page, but real projects with real users.
- How they work. Code review, CI/CD, automated tests. If they can’t answer these questions, walk away.
- How they communicate. Do you get status updates without asking? Do they push back when something is a bad idea?
- Security practices. How do they handle your data, credentials, and access?
A good partner writes code, yes. But they also tell you when your spec has holes, suggest alternatives, and care about whether the product works for your users.
What’s next for 2026
Vietnam’s tech sector isn’t slowing down. The talent pool keeps growing, infrastructure is getting better, and the government continues to push digital economy initiatives. For companies that need to build software without burning through budget, Vietnam is a practical option.
The hard part isn’t deciding whether to outsource here. It’s finding the right team.
Nexora Technology builds web, mobile, and IoT software from Ho Chi Minh City. Talk to us about your project.
Got a similar project?
Tell us about it. First consultation is free.