From high-quality candidates to competitive costs, here is why your companies should consider hiring Vietnam software developers.
Skilled Vietnam software developers population
Vietnam ranked 8th globally and 2nd in Asia in the Programme for International Student Assessment (PISA) in 2015, the most respected global survey by the OECD to measure countries’ proficiency in math, science, and reading. In addition, algorithms and programming are part of the high school curriculum now.
Data from the Global Skills Index 2020 Report, published by Coursera, an online learning platform used by global learners for higher education, also rated Vietnamese technology skills 2nd in Asia Pacific and 22nd globally.
All of the above indicates a competitive engineering workforce that has been constantly emerging in Vietnam.
The competitive supply of Vietnam software developers
Vietnam’s tech ecosystem has experienced exponential growth, establishing the country as a vibrant hub for innovation and software development. In 2021, Vietnamese tech startups secured over $1.4 billion in venture capital funding, a remarkable 57% increase from the previous year. This influx of investment demonstrates the confidence and support of investors, solidifying Vietnam’s position as a tech powerhouse.
According to the e-Conomy SEA 2022 report by Google, Bain & Company, and Temasek, Vietnam’s digital economy is projected to reach $50 billion by 2025, making it the fastest-growing market in Southeast Asia. The digitalization of various industries is expected to reach a minimum of 10% and contribute 20% to the country’s GDP.
On the other hand, Vietnam churns out around 80,000 IT graduates annually (Vietnam’s Ministry of Science and Technology, 2019). This huge number of young graduates, combined with improved internet connectivity, has led Vietnam to become a thriving tech hub recently.
Advantages of building a tech team in Vietnam: A gateway to innovation and cost efficiency
Cost-Effective Development
A major advantage of outsourcing to Vietnam lies in the competitive labor costs. Compared with traditional technology centers like those in the USA, UK, Netherlands, France, and Finland, development costs in Vietnam are significantly more affordable. This economic edge allows European SMEs to maintain high quality while achieving substantial savings. The cost of hiring a developer in Vietnam offers notable economic benefits compared to Western countries due to favorable cost-of-living and exchange rate differences. This factor is particularly advantageous for offshore software development.
A Pool of Highly Skilled Vietnam software developers
Vietnam boasts a high literacy rate of 96.1% as of 2022, a testament to its strong educational foundation in science and technology. This has cultivated an inexhaustible reservoir of talent, particularly in the field of IT development. Vietnam software developers are known for their proficiency in programming languages, sophisticated software architectures, and adapting to new digital trends. The solid base of scientific education in the country continuously fuels a pool of highly qualified professionals, which makes launching a software development company in Vietnam a good investment.
Fostering innovation and entrepreneurship
Vietnam’s culture of innovation and entrepreneurship is a critical factor driving its tech success. The country’s modern co-working spaces and thriving tech ecosystems foster a synergy of ideas, catalyzing a surge in dynamic startups and placing Vietnam on the global map of innovation. This vibrant atmosphere is ideal for companies looking to build a tech team in Vietnam, providing a rich environment for creativity and unconventional problem-solving.
Advanced Technological Infrastructure
Vietnam’s investment in communications and digital infrastructure has created an environment conducive to international collaboration and technological growth. High-speed internet connectivity and modern communication infrastructures facilitate remote collaboration and seamless technology operations, vital for any software development company in Vietnam.
Political Stability and Economic Growth
Vietnam enjoys political stability and sustained economic growth, bolstering investor confidence. This stability is reflected in the continued investment in the country, as noted by the Vietnamese Prime Minister in May 2023, emphasizing the government’s commitment to fostering a harmonious foreign investment climate.
Emerging technological expertise
Vietnam is increasingly becoming known for its capabilities in emerging technologies such as artificial intelligence, cybersecurity, blockchain, and IoT technologies. Government initiatives and training programs support the development of these advanced skills, ensuring that Vietnamese development engineers remain at the forefront of technology.
Government Support and International Trade Agreements
The Vietnamese government’s support for innovation, including tax benefits for technology companies and investments in education, plays a crucial role in the growth of the tech sector. Furthermore, Vietnam’s participation in favorable international trade agreements facilitates global trade and investment, particularly in technology.
In summary, building a tech team in Vietnam means tapping into a landscape rich with highly qualified web developers, a growing technological ecosystem, and a business-friendly environment. These combined assets make Vietnam a promising player in the field of new technologies on the world stage, offering unparalleled advantages for companies looking to innovate and expand in the digital domain.
What to consider when building a tech team in Vietnam
There are several factors that you should pay attention to when it comes to hiring developers in Vietnam to succeed in setting up a dedicated tech team of your own. These factors are connected and affect each other.
Your business needs and requirements
You will always need to have a clear understanding of what you can expect from your software development team. This helps you determine the size and structure of the team, as well as the specific skills and knowledge that they need to possess.
In addition, you also need to consider your budget and time frame for the project. These factors will play a crucial role in determining whether it is feasible for you to set up a tech team in Vietnam all by yourself or whether you should outsource to a software development company.
The team size
The size of the team is important as well, and it will depend on your specific project requirements. A small team of 2–3 dedicated developers is usually enough for a simple project with a short time frame. However, if you are working on large and complex projects, you will need to hire more developers to get the job done within the specified time frame.
Therefore, the project managers should consider the workload of experts in each specific area and the time frame to determine the optimal team size that can help them achieve the project goals and objectives.
In addition, you should keep in mind that a big team does not necessarily mean better quality or faster delivery. In fact, large offshore teams often face more challenges, such as communication difficulties, conflict management issues, and so on.
Therefore, businesses, especially new startups, should only hire as many IT talents as they need to get the job done efficiently while saving costs and preventing unwanted problems. If you insist on requiring a larger team, it is advisable to consider hiring outsourcing companies that offer a development team of a specific size with experience in large-scale projects.
Expertise and experience
Based on the specific requirements of your project and the number of software engineers allowed on your team, you can decide the level of expertise and experience you need from each developer.
When you are working on a small project with a limited budget, it is advisable to hire junior developers who have less experience but can still get the job done. However, for large and complex projects that require deep technical expertise, businesses should consider hiring senior developers or even experts.
Accordingly, the key to success is to balance each factor to make sure that you have the proper offshore team with the right skills for the software development process.
Culture and business model
Each organization has its own culture, and it is important to make sure that your team members in Vietnam can integrate into your company culture and work style. This will help reduce friction, increase efficiency, and maintain a healthy working environment for all. For this, you do not need to worry much because Vietnamese developers are highly adaptive, so all you need to do is set up a working culture at the same time as you build up your team. Afterward, it is just a matter of time before your team gets used to the new culture and works harmoniously together.
Also, when it comes to the business model, you should consider whether you want to outsource the project to a leading software development company in Vietnam or set up an offshore development center in Vietnam. Remember that you can always consult with an expert to get more insights if you are not sure about which model is best for your business.
Management roles of the team
When you decide to build up a dedicated team by yourself, it is crucial to start with the management roles first. They are key members of the team who will be in charge of different aspects of the team’s operation, such as hiring, training, leading, and so on. When the management roles, such as project managers, take the lead in team building, they will not only be able to find the best fit for the projects but also select the members who can work well with them, creating a good working environment for all in the long run. This will guarantee a good foundation for your offshore development team in Vietnam as well as help you avoid any potential risks and challenges in the future.
Contact us today to start building your ideal tech team in Vietnam. Let’s embark on this journey towards innovation and success together.
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