In recent years, Vietnam has quickly become one of the top destinations for software development outsourcing. With a growing pool of talented developers, businesses are turning to Vietnam to meet their IT needs—without the high costs seen in other countries. If you’re considering hiring developers from Vietnam, this guide will help you understand why it could be the right choice for your business.
Why Hire Developers in Vietnam?
Vietnam’s software development industry has been on the rise. According to Statista, the country’s software industry hit $5.44 billion in revenue by 2020, showing impressive growth from the previous year. In fact, Vietnam ranked 6th globally for software outsourcing services in 2021, according to Kearney’s Global Service Location Index. And in 2022, it was one of Southeast Asia’s leading destinations for IT outsourcing.
But why is Vietnam so appealing to businesses around the world? Let’s explore the key reasons:
A Strong and Growing Talent Pool
One of the biggest advantages of hiring developers in Vietnam is the country’s abundance of young, skilled IT professionals. The Vietnam IT market report 2020 by TopDev shows that in Q1 of 2021, Vietnam had over 430,000 software developers and graduates more than 55,000 IT students every year. This large talent pool gives businesses plenty of options to find developers who match their specific needs.
Most Vietnamese developers are young and dedicated, with an average working age of 20-29 years, as indicated by the Vietnam Developer Report 2019. Whether you need front-end, back-end, or full-stack developers, Vietnam can supply a wide range of skilled professionals.
High-Quality Education and Technical Skills
Vietnam is often called a “small but mighty powerhouse” for IT outsourcing, and for good reason. Vietnamese developers are highly skilled, with technical expertise that ranks 2nd in Asia and 22nd globally, according to the Global Skills Index 2020. The country’s STEM-focused education system has produced a large number of developers who are not only technically proficient but also have strong soft skills and a commitment to delivering results.
Many companies that outsource to Vietnam value these qualities, and it’s clear that Vietnamese developers excel in what they do.
Proficiency in English
A common challenge in offshore outsourcing is the language barrier, but this isn’t much of an issue in Vietnam. Almost all university graduates in the country are proficient in English, including software developers. According to the EF Education First English Proficiency Index, Vietnam ranks 13th in Asia and 65th globally for English proficiency.
For businesses, this means better communication with your development team, which is crucial for the success of any project. In Vietnam, English is no longer just a “nice-to-have” skill—it’s a must-have.
Cost-Effective
One of the biggest reasons businesses choose to hire developers in Vietnam is the cost efficiency. The average salary for an experienced developer in Vietnam is around $1,322 per month, according to the 2019 TopDev Report. This is typically 30-50% cheaper than outsourcing to other countries like the U.S., China, or India. Hiring in Vietnam allows you to reduce costs while still getting high-quality work, making it an attractive option for companies looking to maximize their budget.
Trusted Software Outsourcing Providers
Vietnam is home to many reliable software outsourcing providers who have earned a solid reputation working with international companies across various IT industries. These firms can offer innovative solutions and services like IT staff augmentation and offshore development centers. By partnering with a trusted outsourcing provider, you can quickly find top developers and build a dedicated development team at a competitive cost.
Stable Workforce with Low Turnover
Another advantage of working with Vietnamese developers is the country’s lower turnover rate compared to other outsourcing destinations. The IT-related turnover rate in Vietnam is less than 5%, significantly lower than in countries like India. This means you’ll have more stability when working with Vietnamese developers, reducing the risk of having to constantly recruit new talent.
Challenges in Hiring Software Developers or a Dedicated Development Team in Vietnam
While there are some challenges when hiring software developers or working with a development team in Vietnam, most of these issues are manageable with the right approach.
Time Zone Differences
One of the most obvious challenges when outsourcing is dealing with time zone differences. These can affect communication, work processes, and overall efficiency. However, this issue is easily addressed. You and your Vietnamese development team can work together to find suitable hours for both sides. For example, you could align your working hours with theirs so they can rest at night and be productive the next day. Alternatively, you can use the time zone difference to your advantage by completing tasks while they are offline.
Cultural Barriers
Cultural differences—like language and work habits—can sometimes be tricky, especially when working with a team from a different country. But the good news is that language is not a significant barrier in Vietnam. Most developers are proficient in English, which helps with communication. As for work culture, Vietnamese developers are known to be flexible and adaptable. It’s important for you to set clear expectations and work processes from the start. Once you do that, your team will follow your lead and adjust to your company’s way of working.
Communication Issues
Distance and time zone gaps can sometimes lead to communication issues and misunderstandings. However, with the right tools and strategies, this challenge is easy to overcome. Communication platforms like Microsoft Teams, Skype, and Slack make it simple to stay in touch no matter the distance. The key is to set up a clear communication plan. You should also schedule regular virtual meetings or calls to ensure everyone is on the same page and to prevent misunderstandings.
Security Considerations
Security is always a top priority when outsourcing, especially when working with developers overseas. To protect your data and intellectual property, it’s crucial to partner with a reputable IT outsourcing company. Choose a partner with a solid track record of securing client information. One way to ensure this is by hiring companies that are ISO 27001 certified. These companies have strict protocols in place to prevent and quickly address any security or data breaches—something that can be risky when working with freelancers or unverified vendors.
Tips & Tricks for Finding Top Software Developers in Vietnam
Common Mistakes to Avoid When Hiring a Software Developer
When hiring software developers, especially from Vietnam, employers often make a few common mistakes. Being aware of these can help you hire the right developers and avoid wasting time and resources.
Skipping Pre-screening
Pre-screening is a crucial step in the hiring process. It’s the process of verifying a candidate’s background before the interview. Skipping this step might seem like a time-saver, but it can actually waste more time in the long run. By doing a thorough pre-screening, you can ensure that only the most qualified candidates are selected for interviews.
Hiring Based Only on the Resume
A strong resume might look great, but it doesn’t tell you everything about a candidate’s skills. Many developers can write impressive resumes and ace the interview, but hands-on skills matter most. After shortlisting candidates, give them practical assignments to test their abilities. This will give you a better sense of their real-world skills and their commitment to the job.
Not Understanding Local Salary Standards & Employment Regulations
To attract top talent, you need to offer competitive salaries. Before hiring developers in Vietnam (or anywhere else), make sure you understand the local salary standards. Offering too low a salary will make it hard to attract skilled developers and may even cause you to lose your current employees to competitors.
Additionally, knowing local employment regulations is crucial. For example, in Vietnam, it’s common to give employees a 13th salary as a bonus before the Tet Holiday (the Vietnamese New Year). While it’s not legally required, it’s a standard practice that helps build good relationships with developers.
How to Hire Developers in Vietnam Efficiently
Once you know what mistakes to avoid, here are some effective ways to find the right developers in Vietnam.
Use Social Media to Find More IT Talent
Vietnam’s software developers are mainly located in cities like Hanoi, Ho Chi Minh City, and Da Nang, but there’s talent all over the country. Social media is one of the best ways to reach more candidates. Facebook and LinkedIn are the most popular platforms for IT recruitment in Vietnam. With millions of active users, these platforms give you access to a wide pool of candidates and opportunities to network.
To start, create a strong company profile on these platforms to build trust with potential candidates. You can post job listings, join relevant groups, or use LinkedIn to search and directly message potential developers. Facebook also allows you to engage with candidates through groups or referral programs. Best of all, using these platforms is cost-effective, with high returns for your recruitment efforts.
Hire Freelancers in Vietnam
Many skilled software developers in Vietnam work as freelancers. Hiring freelancers can be a great solution for short-term projects or if you only need one or two developers. You can find them on popular platforms like Fiverr, Upwork, or Toptal.
However, hiring freelancers comes with some challenges. You have less control over their productivity, and managing maintenance and support can be tricky. Additionally, since freelancers work independently, you risk losing the developer if they decide to leave mid-project. Security and confidentiality can also be concerns when working with freelancers.
Partner with IT Outsourcing Companies
If you’re not familiar with the recruitment process or lack the time and resources to handle it, partnering with an IT outsourcing company can be a smart choice. Many outsourcing companies in Vietnam specialize in providing top-tier software developers at competitive prices. These companies handle everything from finding talent to building a dedicated development team.
By working with an outsourcing partner, you save time and money on recruitment. You also gain access to local expertise, as these companies have a deeper understanding of the local market and can quickly find the best candidates. This allows you to focus on other key business areas while ensuring you have the right team in place.
Final Thoughts
As Vietnam continues to grow as a major hub for IT outsourcing, the competition for skilled software developers is becoming tougher. We hope the tips and strategies shared in this article will help you create a solid plan for hiring developers in Vietnam and building a strong offshore software development team.
