Vietnam is rapidly emerging as a top destination for software development and IT outsourcing, driven by a young and skilled workforce, competitive labor costs, and sustained government investment.
After years of steady expansion, the IT outsourcing market in Vietnam is forecast to reach $777.36 million by 2025 and grow to $1.18 billion by 2030, with a projected CAGR of 8.63%.
Why Vietnam is a preferred software outsourcing choice
Vietnam has risen in global outsourcing rankings over the last decade. Once behind India and the Philippines, it is now the go-to choice for companies in the U.S., Europe, Japan, and Australia to address tech shortages and drive digital impact.
Universities and training programs produce thousands of IT graduates each year, expanding skills in artificial intelligence (AI), machine learning (ML), data engineering, web and mobile development, and financial technology (fintech). This depth enables Vietnam to compete in higher-value, modern software development rather than low-cost, legacy tasks associated with earlier outsourcing waves.
Cost efficiency and quality drive global demand
Vietnam’s cost-quality advantage is a key draw. Nguyễn Thiện Nghĩa, deputy director at the Authority of Information Technology and Communications Industry, said that Vietnamese IT engineers earn roughly one-tenth of the global average, yet consistently deliver high-quality work that satisfies international clients.
The formula is powering local champions. FPT signed a cooperation agreement to supply semiconductor engineers to Toshiba Information Systems to help address Japan’s talent shortage. Meanwhile, CMC reports that approximately 70% of its workforce serves foreign markets.
CMC Global CTO Dang Van Tu says outsourcing remains the most sustainable growth model for the country. “Vietnam has an abundant, inexpensive tech workforce … and our workforce is quick to adapt and capable of responding to these changes,” Tu added.
Policy and infrastructure underpin the ecosystem
Strong national policies promoting digital transformation, innovation, and foreign investment reinforce the growth. The National Digital Transformation Program guides investment and regulatory updates, while hubs in Ho Chi Minh City, Hanoi, and Da Nang anchor talent and facilities. Samsung and other multinational companies continue to deepen footprints in Vietnam’s electronics and AI value chains.
Vietnam still faces pressure from larger talent markets, notably India and China, making workforce scaling essential. Even so, rising demand for software, AI, fintech, and semiconductors positions Vietnam to capture a share as global sourcing needs expand.
With deep technical talent, supportive government policies, and growing demand, Vietnam is transitioning from a low-cost outsourcing destination to a strategic technology partner for leading companies worldwide.
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Viet Nam News. (2025, January 3). IT outsourcing fetches nearly US$700 million. Retrieved from https://vietnamnews.vn/economy/1690004/it-outsourcing-fetchs-nearly-us-700-million.html
Macayan, D. (2025, November 19). Vietnam emerges as top global software outsourcing hub, analyst says. Outsource Accelerator. Retrieved from https://news.outsourceaccelerator.com/vietnam-software-outsourcing/
