Explore the strategic advantages that position Vietnam as a global leader in software development
Vietnam has emerged as a central player in the global tech industry, quickly transitioning from a relative newcomer to a premier choice for outsourcing software development. According to Deloitte's 2024 "Doing Business in Vietnam" report, the tech sector is projected to contribute nearly 20% to Vietnam's GDP by 2025.
With over a decade of experience operating in Vietnam, we have experienced firsthand the country's growth into a thriving location for affordable, high-quality software development. As Vietnam continues solidifying its position in global tech, the key drivers behind this advancement are worth exploring in greater detail.
Why Vietnam Software Development Is your next strategic move
Vietnam has quickly established itself as a leading destination for software development, offering many benefits that appeal to businesses worldwide. Here are a few of the main advantages of Vietnam software development:
1. High-Quality Talent Pool
Vietnam has a young and dynamic workforce with strong technical skills. By prioritizing education, especially in science, technology, engineering, and mathematics (STEM) fields, our education system produces highly proficient graduates in the latest technologies. Vietnamese developers are recognized for their adaptability, problem-solving skills, and dedication to ongoing learning, making them valuable assets for any software development project or product.
2. Political Stability and Government Support
Vietnam's stable political environment provides a secure foundation for business operations. Our government actively supports the technology industry through initiatives that strengthen our country’s digital infrastructure. A stable political environment and ongoing government support provide a secure foundation that minimizes risks for companies outsourcing to Vietnam.
3. Strong Work Ethic and Cultural Compatibility
Vietnamese professionals are known for their strong work ethic and dedication. Our focus on teamwork, respect for deadlines, and attention to detail align well with the expectations of international clients. This cultural compatibility creates smooth collaboration and high-quality outcomes, making it easier for companies to integrate Vietnamese teams into their operations.
4. Strategic Location and Time Zone Advantage
Vietnam’s strategic location in Southeast Asia offers a geographic advantage. Our time zone overlaps with many major markets, including Asia-Pacific, Europe, and North America, allowing real-time collaboration across different regions.
5. Growing Focus on Emerging Technologies
Technology in Vietnam is on the forefront, expanding into emerging areas like generative AI, blockchain, and IoT. Our government's strategic focus on these technologies is positioning Vietnam as a leader in high-tech innovation, making it an attractive destination for companies looking to develop advanced software solutions.
6. Cost-Effectiveness
Vietnam offers highly competitive pricing for software development services, allowing companies to achieve significant cost savings. With lower labor costs, businesses can access highly skilled development talent at a fraction of the cost compared to other regions.
The Rise of Vietnam as a Global Tech Hub
Vietnam now ranks 7th in the 2023 Kearney Global Services Location Index (GSLI), demonstrating its international appeal as a destination for outsourcing software development. The presence of major global technology companies has further strengthened Vietnam's position as a global digital hub, leading to ongoing improvements in the skills of its workforce to meet international standards.
Rahul Lele, Kearney principal and co-author of the 2023 GSLI report, said that several Asia Pacific countries, including Vietnam, "are in the top 10 due to a strong focus on building digital skills, the adoption of emerging technologies, and government support for developing digital skills."
With strategic planning, a skilled workforce, and a rapidly developing IT infrastructure, Vietnam is quickly becoming a leading tech hub.
Strategic Government Support for Digital Transformation
The Vietnamese government has taken a proactive approach to tech industry expansion. Its plan to position Vietnam as a leader in digital technology focuses on integrating emerging technologies such as AI, big data, blockchain, cloud computing, and the Internet of Things (IoT) across all sectors of the economy. The larger goal is to shift the perception of Vietnam from a country known for assembly and processing to one that produces high-tech products and services.
Our government is leading the way by implementing policies to support digital transformation. For example, in early 2024, Prime Minister Phạm Minh Chính sanctioned the Information and Communication Infrastructure Master Plan for the period up until 2030 and beyond, outlining a comprehensive strategy for developing Vietnam's IT infrastructure.
Vietnam software development also celebrates a culture of innovation and excellence. Vietnam's strategic initiatives, such as the "Make in Vietnam" campaign, launched in 2019 by the Ministry of Information and Communications to promote digital technology businesses and products, have driven growth in the information and communication technology (ICT) industry.
Building a Skilled Workforce Through Education and Training
Education has also played an essential role in Vietnam's tech industry growth due to significant investments in our education system and STEM. According to this article, Vietnam has approximately 1.5 million ICT workers. According to the Vietnamese Ministry of Information and Communications, “At present, Vietnam has 250 universities and colleges, plus 164 vocational training schools providing ICT training, with about 86,000 students.”
Vietnam is home to several prestigious universities known for their exceptional computer science and information technology programs. Institutions such as the Hanoi University of Science and Technology, Vietnam National University, Ho Chi Minh City University of Technology, and Duy Tan University are consistently ranked among the best in the country for producing skilled tech talent. These universities are critical in developing the next generation of IT professionals, providing a solid educational foundation in computer science and related fields.
Further supporting these efforts is 2023’s Resolution No. 58, which outlines the government's strategic direction to enhance Vietnam's global position in the tech sector by "researching and developing a project to develop high-quality human resources serving high-tech development, especially the resources of engineers and practicing engineers."
Vietnam’s tech industry has experienced significant growth due to our efforts to develop a highly skilled workforce. According to the TopDev 2023 Vietnam Tech Talents Report, the tech and digital labor force in Vietnam's computer science and IT-related sectors is around 530,000 strong.
Vietnam's developers are known for their strong technical skills and proficiency in essential programming languages such as Java, JavaScript, and PHP, which are highly sought after by employers. The TopDev report indicates that 68.5% of employers consistently look for back-end developers, making it the most in-demand position in the Vietnamese tech industry. Full-stack developers are second in demand at 68.1%, and front-end developers are second at 62.3%, highlighting the need for versatile programming skills.
According to the 2023 Kearney Global Services Location Index (GSLI), Vietnam's focus on creating regenerative talent pools helped to drive its number seven ranking. Vietnam’s dedication to the three following goals has solidified Vietnam's reputation as a leading destination for software development:
Strengthening the education system
Improving labor market conditions
Equipping Vietnam’s workforce with the skills to adapt to technological disruptions
Cost-Effective, High-Quality Software Development
When companies consider outsourcing software development services, cost is often a factor. Vietnam is a standout choice due to its affordability and high-quality output. Compared to other international hubs, outsourcing software development to Vietnam provides competitive pricing while maintaining rigorous quality standards.
Competitive labor rates contribute to this competitive cost: Vietnam consistently ranks as one of the most cost-efficient countries for software development. According to a report by PwC, Vietnam's low labor costs make it an attractive destination for companies looking to optimize expenses without compromising the quality of their software products.
But it is not just about cost. Vietnam's workforce is known for its strong technical skills, adaptability, and commitment to continuous learning. The 2023 World Bank's Digital Progress and Trends Report found:
"Viet Nam has emerged as a major software hub in Southeast Asia. The country's IT services job sector grew at a breakneck annual rate of 20% during the past two decades, thanks to its young and growing population, low labor costs, and strong science, technology, engineering, and math education."
Vietnam's strategic location in Southeast Asia also provides companies with easy access to major global markets, allowing Vietnam tech companies to operate efficiently across different time zones.
A Thriving IT Ecosystem
Vietnam's IT ecosystem has grown significantly over the past decade, creating a dynamic and competitive environment for software development. The Vietnam National Innovation Center (NIC) creates a supportive tech company environment and promotes innovation within the industry. Government policies promoting entrepreneurship have led to substantial growth in Vietnam's startup ecosystem. As a result, Vietnam has become an appealing destination for domestic and international investors.
Major global technology companies have offshored software development to Vietnam, driving IT infrastructure development and expanding our country's role in the worldwide software development industry. Companies like Samsung, Intel, and IBM established offshore operations, contributing to technological advancements in Vietnam software development.
This influx of international investment has brought in capital and global best practices that Vietnamese companies have quickly adopted to increase their capabilities and improve their competitiveness.
How Axon Active is Supporting Vietnam’s Tech Growth
At Axon Active, our core mission is more than software development—we are dedicated to building partnerships grounded in responsibility and sustainability. Since our establishment in Switzerland, we have expanded globally, with Vietnam as our prominent location since 2008.
Axon Active has continuously contributed to Vietnam's technology industry through community programs. For more than ten years, we have offered a free course called "Software Development with Scrum" for university IT students. Axon Active has also trained over 5000 students, hosted over 100 university classes, and worked with these institutions to train students:
HCM City University of Technology and Education
HCM City University of Agriculture and Forestry
University of Information Technology
HCM City University of Technology (Bach Khoa)
University Of Science and Technology - The University of Danang
Vietnam-Korea University of Information and Communications Technology
Duy Tan University, University of Science and Education - The University of Danang
We also offer specialized on-the-job training programs with tuition fees 100% sponsored by Axon Active Vietnam. Our Fit for Kanban and Fit for Scrum courses offer in-depth, practical training in Agile methodologies. The Certified ScrumMaster® and Certified Scrum Product Owner® courses provide internationally recognized certifications that improve participants' ability to lead Agile teams and manage product backlogs effectively. Our Certified DevOps Training Program focuses on teaching the principles and practices of DevOps.
Designed to assist recent graduates, our Software Fresher Program provides a structured approach to mastering software development fundamentals. This program equips freshers with essential skills to begin their careers in tech by combining theoretical knowledge with hands-on experience.
For non-IT individuals interested in transitioning into tech, our Software Developer Training - For Non-IT course provides a solid foundation in software development, with practical training covering coding and software development basics.
Our training programs and part-time internship programs help to expand the pool of qualified professionals, contributing to broader tech growth in Vietnam.
In another recent initiative, we signed a Memorandum of Understanding with Duy Tân University to co-organize the seventh season of DevDay Da Nang. This collaboration is dedicated to nurturing the next generation of tech talent by connecting students with industry professionals and sharing the latest insights into software development in Vietnam. Our efforts have been recognized with awards like the Outstanding Enterprise Certification in Vietnam, reflecting our commitment to sustainability and positive community impact.
At the core of our service is our "Axon Model" an Agile framework that focuses on building dedicated, stable development teams tailored to our clients' needs. We work with Vietnam’s rapidly growing tech talent, providing highly skilled talent at competitive rates who all follow our philosophy:
"We do what we say, we say what we do."
Our dedicated, stable teams give you complete visibility into the process with interactive, face-to-face collaboration that builds lasting relationships based on reliability, transparency, honesty, and passion. With our global presence and diverse industry experience, we anticipate trends and provide custom software development services that meet the highest standards.
With Axon Active, you are gaining a strategic partner committed to your long-term success. We are proud of our role in Vietnam’s vibrant tech ecosystem and look forward to helping more businesses achieve their goals.
Conclusion: Vietnam Software Development
Vietnam, a leading destination for software development, is a testament to a commitment to innovation, quality, and growth. With its skilled workforce, cost-effective solutions, and thriving IT ecosystem, Vietnam offers businesses an ideal environment for high-quality software products.
Axon Active is a trusted leader in the industry for companies that want to take advantage of Vietnam's strengths in software development. With a deep understanding of the local market and global trends, we are well positioned to help companies achieve sustained success. Please contact us to learn how you can tap into Vietnam’s IT talent pool and shorten your time-to-market.