Are you struggling to find the perfect destination for your IT outsource software needs? With countless countries available as options for offshore software development services and claiming to deliver the best, how do you secure high-quality results without overspending?
Choosing the wrong offshore IT development destination can lead to missed deadlines, inflated costs, and underwhelming outcomes—these are the few setbacks no business can afford in today’s competitive landscape. As we move into 2025, Vietnam has emerged as a standout choice for software offshore development, offering a unique blend of technical expertise, cost efficiency, and cultural compatibility.
In this blog, we’ll explore why Vietnam is the ideal destination and how it can deliver exceptional value for your business. Let’s uncover what makes Vietnam the smart choice for your IT needs!
The Rise of Vietnam IT Outsourcing
Over the past decade, Vietnam has built a solid reputation for delivering top results and high-quality software offshore development services. Constantly fueled by investments in education, technology, and infrastructure, Vietnam’s IT outsourcing sector has experienced remarkable growth, boasting an impressive US$1.28 billion revenue in 2028
According to Kearny’s Global Service Location Index, the country ranks among the top 6 best locations for IT outsourcing. Accelerance also names it a top two software outsourcing hub in Southeast Asia, showcasing Vietnam’s technical expertise and competitive edge against industry leaders like India and the Philippines
Why Vietnam is a Top Destination for Offshore Software Development Services in 2025
Ranked among the world’s top destinations for software offshore development, Vietnam is setting new standards with its growing pool of tech talent, competitive costs, and unwavering commitment to innovation. Let’s explore the unique advantages that make Vietnam IT outsourcing stand out.
Competitive Developer Rates
One of the primary reasons Vietnam stands out as a preferred offshore IT development destination is its highly cost-effective labor market. The country offers labor costs that are significantly lower than other outsourcing hubs like the U.S., India or Western Europe, while still ensuring exceptional quality
| Region | Average Hourly Rate (USD) |
| Vietnam | $18–$30 |
| India | $25–$40 |
| Ukraine | $30–$50 |
| Philippines | $20–$35 |
| Mexico | $40–$70 |
Source: Glassdoor
For businesses, this translates into substantial savings without sacrificing quality or expertise. Companies can achieve more with their budget, allowing them to allocate resources elsewhere, whether it’s in innovation, expanding product offerings, or improving customer service.
A Large Pool of High-quality IT Workforce
Vietnam is home to a thriving and dynamic IT talent ecosystem that continues to grow year after year. With over 560,000 skilled IT professionals, the country stands out as a global hub for technology expertise. Each year, approximately 55,000 new graduates join the workforce, bringing fresh energy and innovative ideas to the industry. This steady influx of talent ensures businesses can find skilled developers specializing in various technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), and blockchain.
What truly sets Vietnamese developers apart is their exceptional performance on the global stage. Frequently ranked among the top in international coding competitions like TopCoder and HackerRank, they’ve earned a reputation as some of the most talented and competitive professionals worldwide. Their adaptability, creativity, and sharp problem-solving abilities have positioned Vietnam as a go-to destination for IT outsourcing software
Stable Socio-Economic
As a beacon of political stability in Southeast Asia, Vietnam provides a robust and secure environment for foreign investments. This consistency in governance has played a major role in attracting global businesses, fostering long-term collaboration and ensuring operational reliability. Looking ahead to 2025, Vietnam’s stable political climate continues to minimize risks, making it an ideal location for establishing an offshore development center
Vietnam’s Growing IT Infrastructure
With the goal of positioning Vietnam as a global technology player, the government has shown exceptional foresight in advancing its IT sector through strategic investments in 5G infrastructure, high-tech parks, and digital transformation initiatives.
In line with global trends, AI development has become a key focus in Vietnam in 2025, with local developers rapidly advancing their skills while the government actively integrates the technology into its national development strategy. Transformative initiatives, such as the National Strategy for Research, Development, and Application of AI and the Responsible AI Guidelines, aim to position the country as a leading AI hub in ASEAN by 2030. These efforts not only enhance Vietnam’s global competitiveness but also equip the nation to deliver cutting-edge IT outsourcing services that meet the evolving demands of the digital age.
Strong Government Support
To foster a thriving IT industry, the Vietnamese government has introduced a range of incentives aimed at attracting international businesses. These include:
- Tax benefits: Reduce corporate tax rates for IT companies and exemptions for certain periods to help reduce operational costs
- Tariff waivers: Elimination of tariffs on imported IT equipment and machinery needed to set up and maintain high-tech operations
- Free Trade Agreements (FTAs): Vietnam’s participation in numerous FTAs, such as the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) and EVFTA (EU-Vietnam Free Trade Agreement), offering favorable trading conditions and reduced tariffs
How Vietnam IT Outsourcing Transformed Business Success
These factors firmly position Vietnam as a rising star in the global offshore IT development industry, drawing major enterprises such as ANZ Bank, Samsung, IBM, NAB and more to engage in software outsourcing in Vietnam
A notable case is NAB, Australia’s second-largest bank, which built a dedicated offshore development center called the NAB Innovation Centre Vietnam (NICV) to leverage Vietnam’s rich pool of technology talent, drive technological excellence and enhance the customer experience for its 8 million clients. Since its launch from 2019, the NICV has grown significantly, establishing three offices across Ho Chi Minh City and Hanoi and employing hundreds of skilled software developers, data scientists, data analysts and digital designers.
Collaborating closely with NAB’s Australian team, the NICV is focused on digital transformation initiatives, including the upcoming release of AUDN—a stablecoin designed to facilitate real-time, blockchain-based transactions using Australian dollars
Top 3 Cities in Vietnam for Offshore Software Development Services
Ho Chi Minh City
As Vietnam’s largest city and economic hub, Ho Chi Minh City leads the country in providing offshore software development services. The city offers excellence infrastructure, modern co-working space and a vibrant tech ecosystem with numerous international IT companies
- Key features:
- Over 80,000 IT professionals and still growing
- Strong collaboration between universities and tech firms to produce industry-ready talent
Hanoi
Being the capital city, Hanoi combines political significance with technological innovation. It serves as a major hub for IT services and outsourcing, supported by a well-educated workforce and government-driven initiatives.
- Key features:
- Home to 40% of Vietnam’s IT workforce
- Hosts global giants like Samsung, IBM, and Microsoft with large R&D centers
- Strong emphasis on AI and IoT development through government-backed programs
Da Nang
Often regarded as the rising star of Vietnam’s tech scene, Da Nang has gained significant attention as an emerging destination for offshore software development. The city offers a balanced combination of a growing tech workforce, lower living costs, and a relaxed lifestyle, which makes it appealing to both local and international tech talent.
- Key features:
- Houses several tech parks, including the Da Nang Hi-Tech Park
- Significant focus on international collaborations
- Affordable cost of living and operational expenses compared to HCMC and Hanoi
Explore more: Top 5 Vietnam Offshore Software Development Companies
Conclusion
With a highly skilled talent pool, cost-effective solutions, and a rapidly growing tech ecosystem, Vietnam is set to become a leading destination for offshore software development services in 2025. The country offers businesses a unique opportunity to optimize costs, access top-tier development expertise, and take advantage of government investment incentives.
Why not harness Vietnam’s potential to fuel your growth and reach new heights? Contact us today to discover how we can help you achieve your business goals with our software development services. We’re committed to building long-term partnerships and crafting innovative solutions that drive your business forward. Let’s connect!
