Foreign companies often choose to outsource IT in other countries to have less costs, access higher expertise and achieve better product quality. Today, that trend continues to grow, especially after the COVID-19 pandemic started. Asia is one of the most common destinations for IT outsourcing around the world. And Vietnam is in the list. According to a report updated in 2022, Vietnam was ranked top 2 in top IT outsourcing countries, behind India.

As a new emerging and potential market for IT outsourcing services, Vietnam has attracted lots of companies from foreign countries such as Australia, New Zealand, Singapore, Hong Kong, Korea and Japan. So, what makes Vietnam an ideal destination in the field of IT outsourcing? Today, we will share with you some of the great reasons why to outsource IT to Vietnam.

Why Vietnam is Best for IT Outsourcing

1. High value at low cost

The first and foremost reason why you should choose Vietnam for outsourcing IT is its high-quality and low-cost service. The CIO Magazine claimed that IT outsourcing in Vietnam is much cheaper than that in other markets around the world. For instance, Vietnam offers software development at a cost that is 90% cheaper than the USA. And compared to India – one of the cheapest countries, the cost of developing software in Vietnam is even 1/3 to 1/7 times cheaper.

Moreover, when it comes to outsourcing per person, Vietnam is also the cheapest. An average salary for a Java developer in Vietnam is about $1,700 per month while that in other countries is much higher, for example: Thailand ($2,200), Philippines ($2,260), Ukraine ($2,270), Brazil ($2,400), Japan ($3,500), Australia ($5,800), Singapore ($7,500) and the US ($8,200).

IT outsourcing to Vietnam can help companies save lots of money. Cheap does not mean bad quality. The reason behind cheap outsourcing services in Vietnam is the low cost of living and doing business there. Continue reading the following parts to know more.

2. Young, well-educated population

Another reason to outsource IT in Vietnam is a strong labor force.

With the population of over 99 million people in 2022, Vietnam ranks top 15 among world’s most populous countries. Its people are young, well educated, and showing growing interest in technology. Over 51% of the population is 39 years or younger, who contributes to the workforce in both quality and quantity.

Vietnam is also one of the countries with the highest rates of adult literacy (94.52% by 2022). To bring people into work, the government opened nearly a thousand vocational training facilities. Moreover, they have made excellence in engineering and science a priority after realizing the growing demand for software development outsourcing.

Nowadays, Vietnam has 187 technical schools and more than 250 universities that provide technical training in a variety of programming languages. According to a report in 2022, there will be 57,000 IT students and 480,000 IT engineering graduates each year.

This indicates that Vietnam has a large pool of young, dynamic, talented and skilled software engineers, which is an ideal destination for technology outsourcing.

3. High-skilled engineers

Vietnam was ranked 44th position out of 132 in the GII ranking list 2021 (Global Innovation Index). The country had more than 18,500 scientific and technological discoveries. Moreover, Vietnam was ranked 22nd globally and second in Asia Pacific in terms of technology skills in 2020 according to the Global Skills Index. In the TSGI 2021 ranking, Vietnam ranked 25th in the top 50 digital countries. Hanoi and Ho Chi Minh City also ranked among top 100 super cities for outsourcing and investment.

Therefore, outsourcing IT to Vietnam will allow you to access a pool of professionals who are highly skilled and knowledgeable in the field. You can be assured that your project will be completed on time and high quality.

4. Socioeconomic stability

Another reason to choose Vietnam for outsourcing IT is that the country has stability in all important aspects from society, economy, culture to politics. Outsourcing to vendors in an unstable country can cause a disruption in the local labor force and have a negative effect on the foreign companies.

Today, more countries are experiencing conflicts, disputes and natural disasters. But fortunately, Vietnam is a safe and stable country where foreign companies can outsource without any worry.

For over the past 40 years, the country has had a single-party autocracy. Despite a high diversity of 54 different ethnic groups, Vietnamese people cohabit peacefully and there has been no ethnic and religious conflict for many decades. Since 2020, the Coronavirus pandemic has spread and affected almost all countries. Vietnam is among the top countries that were less affected, but have responded very well to the pandemic, according to Deutsche Welle (DW) – a Germany’s international broadcaster. This has made Vietnam one of the most attractive destinations for IT outsourcing in the world.

5. English proficiency

Language is another factor to consider when selecting the country to outsource for success. Vietnam does very well in that regard.

According to EF’s Global English Proficiency Ranking 2022, Vietnam ranks 60th among 111 non-English speaking countries in the world, ranks 7th in the Asia region and ranks higher than any country in ASEAN, except Singapore, Philippines and Malaysia.

In nearly all Vietnamese universities and colleges, proof of English proficiency (international standards) is compulsory for graduation. This eliminates language barriers and enhances communication when collaborating with global teams. In the technology industry, most IT students and engineers in Vietnam can communicate in English easily and non-stop improve their fluency to work on outsourcing projects.

6. Quick access to new technologies

Businesses choose Vietnam to outsource IT because they want to get their work done by highly skilled experts who can keep up with changing technology trends. By this way, they can both save costs and improve the quality of the work, instead of building an in-house team or outsourcing a more expensive team in other countries.

Speaking about innovation and technological catching-up, Vietnam was ranked 42nd (in 2020), 44th (in 2021) and 48th (in 2022) among 132 countries in the Global Innovation Index. Vietnamese IT and tech workers are not afraid of new challenges and they always stay current with emerging technologies such as Cloud Computing, AI, Machine Learning, Internet of Things (IoT) and BlockChain. Vietnamese developers are strong in technical skills, large scale projects and work experience. So, if you outsource IT services to this country, you can be assured of successful project completion in terms of time, costs and quality.  

7. Good IT infrastructure facilities

In recent years, the IT infrastructure in Vietnam has improved significantly. The country now has modern facilities and infrastructure that are ready to meet the demands of outsourcing companies. Moreover, the Vietnamese government has actively introduced measures to provide financial support, land rent reductions, and other privileges for domestic IT enterprises in an effort to promote Vietnam to become a prominent destination in the field of high technology.

8. Geography proximity

Geography location is a factor that can influence one business’s decision when selecting an outsourcing partner. Most companies often choose a country that is close to them in geography and time since this removes barriers to communication, time zone and culture. Moreover, it can be easy for them to fly there to meet teams in person and check on progress.

Hanoi, Danang and Ho Chi Minh city are among top most innovative cities that have direct flights from foreign destinations to Vietnam. They are home to highly skilled professionals with vast technical expertise, promising to meet your outsourcing needs.

9. Special culture

Engineers from Vietnam have high standards of work habits such as responsibility, punctuality, honesty, loyalty, high concentration, patience, dedication and passion for innovation. These characteristics can ensure that the outsourced team can communicate openly, adapt quickly and deliver high-quality projects on time and under budget. Outsourcing to Vietnam means not just providing technical expertise but establishing long-term relationships.

10. Presence of global tech giants

Outsourcing Vietnam has experienced rapid growth in recent years. Many of the world’s leading companies are relocating to Vietnam.

Many famous technology companies are investing in Vietnam’s IT outsourcing services. Intel, IBM, Fujitsu, Foxconn, Canon, Sony, Cisco, Bayer, Microsoft, Samsung, LG are some examples. Outsourcing Vietnam is a promising industry that has been developing for many years and has a lot of potential to explore.


Vietnam is an emerging market which offers favorable conditions for foreign investors, especially in the fields of information and technology (IT). From low cost, young and highly-skilled workforce, dynamic economy to government support, Vietnam has all the elements to become the leading IT outsourcing destination in the coming years. 

If your company is looking for solutions related to software development, IT staffing and digital transformation consulting services, do not hesitate to contact EXE Corp.

EXE is the leading IT outsourcing provider in Vietnam that offers all innovative digital solutions to support businesses worldwide. The company has had 13+ years in the IT industry and won many awards for its excellent performance, for example: 2016 Gold Medal ICT Production, Solution, Service Providing Foreign Enterprise. In 2017, the company established a branch in Australia and continued going global with many new goals. Currently, EXE has more than 200 clients from many parts of the world: Canada, US, Australia, Vietnam, and numerous other countries.

Here are some key features of EXE IT service provider:

  • Has expertise in many industries including manufacturing, healthcare, fintech, banking and finance, media and entertainment, automotive, logistics and transportation.
  • Offers software development services such as web design, mobile app development, system building, application and platform modernization and more. 
  • Offers individual developers on demand as well as dedicated team to augment your in-house team or cover specific technical needs and domain expertise.
  • Offers two solutions of eCommerce, HealthCare and Edu Tech that can help users manage their business more effectively.
  • Offers Digital Transformation Consulting Service for SMEs using prototyping models. 
  • Offers Digital Transformation Services such as cloud professional services, RPA implementation, AI implementation, and digital marketing operation.