Hire Developers in Vietnam: What to Know Before Outsourcing Software Development to Vietnam

admin

With access to abundant tech resources and a growing IT industry, you can access a high percentage of software developers in Vietnam that can produce high-quality work for a fraction of the cost you’d spend in Western countries.

In recent years, Vietnam has emerged as a global software development powerhouse. Vietnam has made tremendous strides in economic development and demonstrated remarkable resilience in the aftermath of COVID. With access to abundant tech resources and a growing IT industry, you can access a high percentage of software developers in Vietnam that can produce high-quality work for a fraction of the cost you’d spend in Western countries. As a result, more and more tech companies in the western world are aiming to hire developers in Vietnam for their offshore talent outsourcing needs. 

 

According to Accelerance’s 2022 Global Software Outsourcing Trends and Rates Guide, Vietnam was one of the two leading software outsourcing destinations in Southeast Asia. This indicates that more companies will be looking to recruit software developers from Vietnam. 

 

In this article, we will look at the reasons behind this wave of outsourcing and go deep into them.

 

Country Profile

    • Capital: Hanoi
    • Official Languages: Vietnamese
    • Currency: Vietnamese Dong
    • Population:98,186,856
    • Time zone: UTC+07
    • Number of developers – 430,000+
    • Average developer’s salary: USD 45,848 per year
    • Political Stability (scale -2.5 to 2.5): – 0.11
    • Ease of doing business: 66/100
    • Biggest Tech Hubs: Ho Chi Minh City and Hanoi
    • Popular Technologies: C#/C++, Java. PHP, Python, Go, NodeJS, .NET

 

1. Advantages of Outsourcing Software Development To Vietnam

 

  • High-Quality Education

Vietnam was called a “Small but mighty powerhouse” by Forbes for its IT outsourcing services. Its developers are highly-skilled and excel in their field of expertise. In most Vietnamese universities, the level of technical education and self-study is gradually improving. The STEM education-focused system in Vietnam has contributed significantly to the increasing number of developers, producing a large number of IT talent ready to serve businesses from across the globe. 

As a result, Vietnamese developers are among the top software developers in the world. Vietnamese technical skills were ranked 2nd in Asian Pacific and 22nd worldwide by the Global Skills Index in 2020. There are many talented developers from Vietnam working on projects across Asia. These Vietnamese developers are technically sound and highly proficient in soft skills. 

 

  • English Proficiency

Language is a common barrier when it comes to software outsourcing. Even though this may be a significant barrier with outsourcing firms from other countries, it’s not an issue in Vietnam. According to the EF Education First English Proficiency Index, Vietnam is placed 65th overall and 13th in Asia. Almost all college graduates are proficient in English. Hence, most software developers are fluent in English and have a higher proficiency level than the national average. So language and communication will not be an issue.

 

  • Diverse Pool Of Talent

With the shortage of software developers worldwide, Vietnam possesses an abundance of IT human resources. Vietnam has over 430,000 software developers and more than 55,000 IT students graduating from over 153 institutions each year. This provides a wide selection of candidates to choose from. The country’s government has realized the importance of training students with knowledge of in-demand skills, rather than engineering and sciences. 

Most of these software developers are young and dedicated. According to the Vietnam Developer Report 2019 by TopDev, the average working age of Vietnamese developers range from 20-29. With the growing demand for an IT workforce, Vietnam can supply a vast number of different types of developers to cater to the growing needs of global businesses.

 

  • Cutting-Edge Technology

Vietnam’s software companies make sure to keep up with the rest of the world. Emerging technologies like Blockchain, cloud computing, IoT, Machine learning, and other commonly utilised software development technologies are being adopted by many outsourcing businesses in Vietnam. These Vietnamese developers have the exceptional technical expertise and hands-on experience working on large-scale IT projects with millions of people around the world.

 

  • Cost-effective

When hiring software developers in Vietnam, businesses take advantage of the low labor costs. This helps them cut their expenses. The average salary of a developer in Vietnam is a highly competitive price. It’s around 30-50% cheaper in comparison with other IT outsourcing destinations like the US, China, or India. It’s among the most affordable countries to outsource software development projects at the moment. With its reasonable prices and quality, hiring developers from Vietnam is a wise choice. Not only will you be saving money, but you’ll also receive top-notch software developers.

 

2. Cost Of Hiring Developers From Vietnam

Because of its high-quality teams and inexpensive labor costs, most firms recruit developers in Vietnam. On average, remote developers in Vietnam earn $45,848 per year. Hiring software developers in Vietnam might cost anything between $10 – $40 per hour. The average rate is around $20. The salaries of remote developers in Vietnam are among the lowest in Asia. The salaries of these developers might vary depending on their location, level of expertise, and specialty. However, the overall cost of hiring developers may vary depending on taxes, operating costs, and the availability of talent in a particular region.

 

Salary breakdown by developer type:

A software developer in modern times will be either a Front-end, Back-end, or Fullstack developer. The salary of these developers will be strongly influenced by the specialization you choose and the languages you know. Frontend developers often earn the least of the three specializations, but full-stack developers might make more than the average.

Yearly Salary Rates For Junior And Senior Software Developers In Thailand:

 

The salary breakdown has been extracted from Glassdoor. The estimated total pay for a Developer is ₫45,000,000 ($1814) per month, with an average salary of ₫16,000,000 ($ 644.97) per month. The estimated additional pay is ₫29,000,000  per ($1169) month. This additional pay could include a cash bonus, commission, tips, and profit sharing. However, the average salary of a developer may change according to their level of experience.

 

Junior Web Developer – the estimated total pay is ₫26,500,000/month ($1068.23) with an average salary of ₫6,000,000 /month ($241.86) and an estimated additional pay of  ₫20,500,000/month ($826.36).

Senior Web Developer – the estimated total pay is ₫85,500,000/month ($3446.54) with an average salary of ₫35,500,000/month ($1431.02) and an estimated additional pay of ₫50,000,000/month ($2015.52). This is higher than the average salary of a developer.

3. Disadvantages of Outsourcing Software Development To Vietnam

 

  • Time Zone Differences

When you’re hiring a developer from another country, there is no doubt that there will be a time difference. This will have an impact on the business process and communication, which will have an impact on overall work efficiency. However, this is not a major issue because there are several apps available to video conference and interact with your team. This will reduce the impact of time zone differences. You and your team can agree on work hours that allow both parties to communicate. This is where talent marketplaces such as Unicorn.dev come in. They provide you with a 4-hour time zone overlap every day to help you collaborate with your remote team.

 

  • No Unified Data Protection Law

Vietnam does not have a data protection law. However, the government has a legal framework in place to protect personal data, which is based on a number of decrees, regulations, and acts. For example, the Cybersecurity Law (2018) and the Civil Code (2015). These can be confusing, inadequate, and cumbersome for data controllers and processors. This can be a hindrance to stable growth in the digital economy. According to the Internet Security Threat Report, Vietnam is one of the top ten nations that are victims of targeted cyberattacks. This can be a major setback for foreign companies planning to invest in Vietnam.

 

  • Cultural Differences

When you hire developers from Vietnam, you need to pay attention to the different cultures. Despite it being one of the best countries to outsource talent, you have to overcome cultural barriers to maintain a sustainable team. The way these Vietnamese people operate, as well as the environment and society in which they live, are influenced by Asian culture. This can be very different from how people work in the West. This is why it’s essential to conduct some research before making business connections.

 

4. Things To Consider When Hiring Developers

 

Vietnam has become a primary source for software developers in Southeast Asia. However, when you are hiring developers remotely, you can make the hiring process more efficient by avoiding these things. Here’s a few popular 

 

  • Before you start interviewing candidates, have a recruiter pre-screen the candidates. This will save time, as it will allow you to prioritize and interview only the promising candidates.
  • When hiring developers, give them a test assignment to help you gauge their skills. Some developers may have great resumes and ace all questions but may be terrible at presenting their skills.
  • Being in a foreign country means you have to follow local laws and regulations. For example, Vietnamese companies tend to pay their employees a TET(Vietnam New Year) bonus. It’s not mandatory by law, but this can affect employee morale.
  • You need to offer competitive market rates. Do not pay these developers less or more than they deserve. Get advice on the local salary range, so you know where you stand.

 

5. How Can You Hire Developers From Vietnam?

 

– Remote contracting websites

You can use local job boards to find developers according to your requirements. A few popular job boards are listed below:

 

– Traditional outsourcing

 

There are many software development companies that you can use to hire developers in Vietnam. However, ensuring the quality of work can be tough. When you choose an outsourcing company, you can check for reviews on sites like Clutch.co. However, this can be quite tedious. Although you’ll be hiring talent, you’ll also need someone you trust to check the quality of your developers’ work.


– Talent marketplace

 

This is probably the most practical option to hire developers in Vietnam. It is an excellent method for hiring individuals or teams based on your requirements. Unicorn.dev is one of the most accessible talent marketplaces. It has its own exclusive pool of highly vetted developers. They use a 5-step extensive vetting process to filter out the best candidates. 

Unicorn.Dev takes charge of all the talent management, payments, and compliance. This makes outsourcing much easier and less risky. They make sure to assign the most suitable talent within 24 hours, after which you may begin working together via a private Slack workspace. These developers are continually monitored to ensure that quality standards are maintained. Whether you’re searching for talent on a part-time or full-time basis, you are given a 7-day free trial. If you aren’t satisfied, you can immediately choose an alternative or get a refund right away. Unicorn.Dev provides weekly contracts, so there’s a minimum commitment.  In addition, you can purchase developers off the platform. For more information, schedule a call with us here.

 

6. Key Takeaways

 

Now, let’s go through some key takeaways from the Vietnam IT outsourcing landscape. This will help you decide if it’s the ideal solution for your company.

arrow_back
Back to blog