5 advantages of Vietnamese offshore software development companies
Vietnam offshore software development is gaining global recognition for affordability, skilled labor, and high-quality solutions. This article shows why businesses offshore to Vietnam and how it offers a competitive edge in a tech-driven market.
1. Cost-effective development without sacrificing quality
Offshore refers to activities conducted outside a country's borders, often to take advantage of lower costs, skilled labour, or favourable tax policies. In the technology sector, offshore software development is the practice of hiring a team of developers from another country to work on software projects. This approach helps businesses reduce costs while gaining access to high-quality talent.
Vietnam offshore software development is attractive for businesses looking to reduce costs without compromising output quality. The affordability comes from lower wages, reduced operational expenses, and government incentives.
The first cost advantage is Vietnam’s lower living costs. Compared to Western countries, expenses like office rent, utilities, and employee benefits are significantly cheaper. This allows offshore software companies to offer competitive pricing while maintaining efficient operations. Businesses outsourcing to Vietnam can expect to pay a fraction of what they would spend on in-house teams, even for long-term projects.
In addition to labour savings, companies also cut infrastructure costs. Establishing an in-house development team requires investments in office space, high-performance equipment, software licenses, and security systems. Vietnamese software development firms already have these resources, saving businesses money on setup and maintenance.
2. Skilled and growing IT talent pool
2.1. Vietnam’s strong investment in STEM education
Over the past decade, Vietnam has heavily invested in STEM (Science, Technology, Engineering, and Mathematics) education. The government has introduced policies to encourage IT training, and universities have expanded their computer science programs to meet industry demands. As a result:
Top universities like Hanoi University of Science and Technology, and Ho Chi Minh City University of Technology are producing thousands of IT graduates each year.
Collaboration with global tech firms provides students with hands-on experience in real-world software projects.
Coding boot camps and online courses have become increasingly popular, allowing professionals to upskill and stay updated with the latest technologies.
2.2. Young, tech-savvy workforce with excellent coding skills
Vietnam has one of the youngest workforces in Asia, with a median age of around 32.9. This youthful population brings:
High adaptability to new technologies, making Vietnamese developers quick learners and problem-solvers.
Strong coding skills in multiple programming languages, including Java, Python, C++, and JavaScript, which are widely used in software development projects.
Participation in global coding competitions such as Google Code Jam and ACM ICPC, proving their capabilities on an international level.
3. Strong work ethic and cultural compatibility
Vietnam offshore software development companies are widely recognized for their hardworking and adaptable engineers, customer-centric approach, and increasing global collaboration skills.
3.1. Hardworking and adaptable engineers
Vietnamese software developers are known for their strong work ethic and dedication to delivering high-quality results. Unlike some outsourcing destinations where productivity might fluctuate, Vietnamese engineers take pride in their work and consistently meet deadlines with precision. They are also highly adaptable, eager to learn new technologies, and quick to integrate industry best practices into their workflow.
3.2. Customer-oriented approach with flexibility in development
Their customer-focused mindset is a major advantage of working with Vietnam offshore software development companies. Businesses often find that Vietnamese teams are highly responsive, open to feedback, and willing to go the extra mile to satisfy client expectations.
Moreover, time zone differences are effectively managed, with many teams offering overlapping working hours or adjusting their schedules to provide real-time support. This level of flexibility allows businesses to work seamlessly with Vietnamese developers, reducing the friction often associated with offshore outsourcing.
3.3. Growing proficiency in English and global collaboration experience
One of the concerns businesses have when outsourcing is the language barrier, but Vietnam has made significant progress in English proficiency, particularly in the IT sector. Many universities in Vietnam emphasize English in their curriculum, and developers frequently engage with international resources, courses, and certifications conducted in English.
Beyond language skills, Vietnamese software engineers have increasing experience working with global clients across industries such as fintech, e-commerce, healthcare, and AI. They are well-versed in international development practices, including Agile, Scrum, and DevOps, which enhances their ability to collaborate effectively with cross-functional teams worldwide.
>>> Read more: Top 10 IT outsourcing companies in Vietnam (Update 2025)
4. Favorable business environment
Vietnam has emerged as a prime destination for offshore software development due to its skilled workforce, cost efficiency, and its favourable business environment.
4.1. Tax incentives and policies supporting foreign investment
The Vietnamese government has actively introduced policies to attract foreign investment in the technology sector. Companies engaged in software development and IT services enjoy significant tax benefits, including:
Corporate income tax (CIT) incentives: Many tech companies qualify for a preferential CIT rate of 10% (compared to the standard 20%) for up to 15 years, with tax exemptions in the initial years.
Personal income tax (PIT) reductions: Skilled IT professionals may benefit from lower PIT rates, making Vietnam an attractive place to hire and retain top talent.
Import duty exemptions: Companies investing in IT infrastructure, such as cloud computing and data centres, are often eligible for exemptions on imported equipment.
Additionally, Vietnam has signed numerous free trade agreements (FTAs) that facilitate easier business operations for foreign companies. This pro-business approach reduces financial barriers, making it easier for international firms to set up offshore development centres.
4.2. Political stability and growing IT infrastructure
Vietnam is one of Southeast Asia's most politically stable countries.. Unlike some outsourcing destinations that face frequent disruptions due to political unrest or regulatory uncertainties, Vietnam offers a strong legal framework and government support for foreign businesses.
Moreover, Vietnam has heavily invested in its digital infrastructure to support the growing IT industry. Some key advancements include:
Expansion of high-speed internet and 5G networks to enhance connectivity for remote collaboration.
Development of technology parks and IT hubs in major cities like Ho Chi Minh City, Hanoi, and Da Nang, providing modern office spaces and facilities for software development companies.
Increased funding for digital transformation projects ensures businesses have access to advanced cloud computing, AI, and cybersecurity resources.
4.3. Presence of global tech companies
Vietnam’s thriving tech ecosystem has attracted major multinational corporations, reinforcing its reputation as a key player in the global software development market. Companies like Microsoft, Intel, Samsung, IBM, and Google have set up research and development (R&D) centers, software engineering teams, and manufacturing facilities in Vietnam.
The presence of these tech giants benefits the local IT industry in several ways:
Knowledge transfer & skill development: Engineers and developers working with global corporations gain exposure to international best practices, which enhances the overall quality of software development in Vietnam.
Stronger tech ecosystem: The investment from these companies has led to the growth of local tech startups and service providers, creating a more competitive and innovative market.
Enhanced credibility: The involvement of top-tier companies reassures foreign businesses that Vietnam is a mature and reliable outsourcing destination.
5. High-quality deliverables with agile development practices
Vietnam offshore software development companies are recognized for their ability to deliver high-quality, scalable, and innovative software solutions. By adopting Agile, DevOps, and modern project management methodologies, Vietnamese teams ensure efficient workflows, continuous feedback loops, and rapid development cycles.
Additionally, Vietnamese developers leverage industry-standard tools such as Jira, Trello, and GitLab to maintain project efficiency and meet deadlines effectively. Their strong technical expertise enables them to build scalable applications using cloud-native technologies like AWS, Azure, and Google Cloud, ensuring performance and reliability.
>>> Read more: What is the common point of IT services outsourcing companies Vietnam?
6. Wrapping up
To sum up, Vietnam offshore software development companies offer a unique combination of cost efficiency, skilled talent, strong work ethic, and a favourable business environment, making them an ideal choice for global businesses. If you are looking for a reliable software development partner, Vietnam provides the talent and innovation needed to drive success.
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