[2025 Edition] A Comprehensive Guide to Vietnam’s IT Landscape! Strengths, Benefits, and How to Choose a Development Company

In recent years, Vietnam has been attracting attention as a destination for offshore development. Vietnam has a large pool of highly skilled engineers and offers lower labor costs than Japan. Many people considering offshore development may want to learn more about Vietnam's IT industry.

"I want to learn about Vietnam's IT industry."
"I want to know the strengths of Vietnamese IT talent."

For those interested, this article explains the IT industry in Vietnam, its strengths, and its benefits. We will also discuss how to choose an offshore development company, so if you are considering offshore development, please use this as a reference.

Additionally, the following article provides a detailed explanation of offshore development in Vietnam. If you are interested, please check it out.

8 Reasons Why Vietnam is the Best Choice for Offshore Development and How to Select a Reliable Company - Solashi

Akira Shimazoe

CEO of Solashi Japan LLC. Engaged in the development and operation of internal systems at Suntory. Founded Yper Inc., serving as CTO and CPO, contributing to product launch and growth.

Vietnam's IT Industry

In recent years, Vietnam has been accelerating IT infrastructure development and digitalization at a national level. This section provides a detailed overview of Vietnam's IT industry from the following perspectives.

• IT industry growth rate
• IT workforce population
• IT talent development
• Future prospects of the IT industry

IT Industry Growth Rate

According to a report by the U.S. International Trade Administration, Vietnam's IT industry is expected to experience continued high growth. Vietnam's ICT (Information and Communication Technology) market was worth approximately $7.7 billion in 2021 and is projected to reach around $17 billion by 2027.

The Vietnamese government is promoting the use of ICT to improve public sector services. Additionally, private companies in industries such as aviation, healthcare, banking, energy, and telecommunications are increasingly adopting ICT solutions.

IT Workforce Population

As of 2019, Vietnam had approximately 400,000 IT professionals, with the majority being young engineers. According to "TopDev," the 20-29 age group accounted for 53.2% (about 210,000 people), while those aged 30-34 made up 15.8% (about 60,000 people).

This young workforce is a key strength of Vietnam's IT industry. Young engineers have high adaptability to new technologies and tend to drive innovation. Additionally, the large proportion of young professionals ensures long-term talent supply stability. These factors make Vietnam a promising market with expectations for sustained IT industry growth and enhanced global competitiveness.

(Source: TopDev│Vietnam IT Market Report 2023)

IT Talent Development

In Vietnam, based on the Education Law enacted in 1998, English and computer education have been introduced from the third grade of elementary school. The government is promoting school digitalization, with a strong emphasis on STEM education (Science, Technology, Engineering, and Mathematics).

Notably, software education is receiving significant attention. In Vietnam, software coding and IT subjects are taught from the second year of middle school. The early introduction of IT education is one of the key factors contributing to the high number of IT professionals in Vietnam.

Vietnam's education standards are also highly rated internationally. In the PISA (Programme for International Student Assessment) conducted by the OECD (Organisation for Economic Co-operation and Development), Vietnam ranked 8th globally in 2015. Particularly in science and mathematics, Vietnam outperformed advanced countries like South Korea and the United States.

Future Prospects of the IT Industry

Vietnam's digitalization and DX (Digital Transformation) are expected to progress further. In 2020, the Vietnamese government approved the "National Digital Transformation Program until 2025, with a Vision to 2030." This plan aims to accelerate DX efforts in Vietnam by 2030.

The Vietnamese government has been focusing on IT talent development. With this new initiative, digitalization across the country is expected to accelerate, leading to further IT adoption in administration and industries. As a result, Vietnam is likely to strengthen its global competitiveness in digital technology.

Skill Level and Strengths of Vietnamese IT Professionals

This section explains the skill levels and technical strengths of Vietnamese IT professionals.

Years of Experience in IT Engineering

To understand Vietnam's IT workforce, let's look at years of experience. As mentioned earlier, Vietnam has a large number of young IT professionals. Below is a comparison of experience levels between Vietnamese and Japanese IT professionals.

	Vietnam	Japan
Less than 3 years	52.8%	28.8%
Less than 5 years	16.5%	8.3%
Less than 10 years	18%	13.6%
10 years or more	12.7%	49.2%

Source: Vietnam IT Market Report Tech Hiring 2023 - TopDev
Source: Engineer White Paper 2024 (qiita.com)

Preferred Programming Languages and Frameworks

Vietnamese IT engineers have acquired a wide range of globally in-demand programming languages and frameworks. The primary programming languages used are as follows:

• JavaScript
• Java
• C#
• PHP
• Python
• Ruby, etc.

Additionally, the following frameworks are commonly used:

• React
• Spring Boot
• .NET Core
• Laravel
• Django
• Ruby on Rails

These languages and frameworks are also highly sought after in Japan's IT industry. Therefore, when Japanese companies collaborate with Vietnamese development firms, the technical gap is minimal, ensuring smooth project execution.

Key Technologies

Vietnamese educational institutions and enterprises are actively developing and researching new solutions utilizing AI. As a result, Vietnamese IT engineers are also proficient in AI, machine learning, blockchain, data science, NFTs, and other cutting-edge technologies.

These emerging technologies are in high demand worldwide, and many companies are incorporating them into their operations to enhance global competitiveness.

Five Reasons Why Vietnam Is a Popular Offshore Development Destination

In recent years, Vietnam has gained popularity as an offshore development destination. The main reasons for this popularity are as follows:

1. Lower labor costs compared to Japan
2. Ease of communication
3. Abundance of skilled talent
4. Stable infrastructure
5. Minimal time difference with Japan

Let's take a closer look at each of these reasons.

1. Lower Labor Costs Compared to Japan

Vietnam has a lower wage level compared to Japan. With labor costs being about one-half to one-third of those in Japan, companies can significantly reduce development costs. This cost advantage is one of the primary reasons why Vietnam is an attractive offshore development destination.

However, to maximize cost-saving benefits, establishing an effective communication structure is essential. Additional costs may arise, such as hiring bridge SEs to overcome language and cultural differences. Nonetheless, the overall cost advantages make Vietnam a highly appealing offshore development location.

2. Ease of Communication

Vietnam has a higher number of Japanese-speaking professionals compared to other Southeast Asian countries. According to a 2021 JASSO survey, Vietnamese students account for 20.4% of all international students in Japan. Vietnam is also known for having a large number of Japanese language learners.

(Reference: 2021 (Reiwa 3) Survey on International Students in Japan │ JASSO)

This characteristic is a significant advantage in the IT industry. Having professionals who can communicate in Japanese is crucial for project success. The abundance of Japanese-speaking talent in Vietnam is a major strength in offshore development.

Our company, "Solashi Co., Ltd," has a large number of Japanese staff and Vietnamese engineers who can speak business-level Japanese. Additionally, our bridge SEs help prevent misunderstandings caused by language and cultural differences, ensuring smooth communication. If you're interested in offshore development in Vietnam, please feel free to contact us.

3. Abundance of Skilled Talent

One of the strengths of Vietnam’s IT labor market is the abundance of highly skilled engineers. Government-led ICT education initiatives have continuously produced high-quality professionals, contributing to the long-term growth and competitiveness of the Vietnamese IT industry.

Vietnam’s education level is also internationally recognized. In the 2015 OECD PISA (Programme for International Student Assessment), Vietnam ranked 8th in scientific literacy, demonstrating that its younger generation possesses strong problem-solving and logical thinking skills.

(Reference: OECD PISA 2018 Survey Results │ MEXT & National Institute for Educational Policy Research)

4. Stable Infrastructure

One of the reasons behind Vietnam’s growing popularity is its stable infrastructure. In recent years, the Vietnamese government has focused on improving telecommunications, roads, and water management infrastructure, with notable advancements in IT-related infrastructure.

The widespread adoption of fiber-optic internet has significantly improved connection stability and speed, bringing several benefits:

• Increased efficiency in remote work: Smooth video conferencing and file sharing due to stable high-speed internet.
• Real-time communication: Fast and low-latency communication between Japanese companies and Vietnamese development teams.
• Stable system development and operation: A high-quality internet environment reduces operational risks.

5. Minimal Time Difference with Japan

The time difference between Vietnam and Japan is only 2 hours, meaning that working hours significantly overlap. Due to the small time difference, real-time communication becomes easier, allowing for faster project progress and decision-making.

For example, if an issue arises during development or a specification change is required, discussions can be held immediately, and responses can be made promptly. On the other hand, when working with a country that has a large time difference, delays in communication can slow down decision-making and responses.

When developing with Vietnam, these risks can be minimized, leading to more efficient project progress.

Key Points for Choosing a Vietnamese Offshore Development Company

When selecting a Vietnamese offshore development company, check the following points:

• Extensive development experience
• Skill level and language ability of the bridge SE
• Ease of communication
• Proposal capabilities

Let’s go over each of these points.

Extensive Development Experience

When selecting an offshore development company, be sure to check their past development experience and areas of expertise. A company with extensive development experience is likely to have strong technical skills, problem-solving capabilities, and risk management expertise. Additionally, since they have encountered various technical challenges, they can flexibly respond to unexpected technical troubles or specification changes.

The development company's track record is often published on their website or portfolio. Start by checking the website of the company you are considering hiring. By reviewing their portfolio, you can determine whether they have the technical expertise and experience that match your needs.

Skill Level and Language Ability of the Bridge SE

To ensure smooth offshore development, be sure to check the skill level and language ability of the bridge SE. Specifically, verify their past experience, projects handled, areas of expertise, and proficiency in Japanese and Vietnamese beforehand.

There are differences between Japan and Vietnam in terms of business communication styles and working methods. In offshore development, understanding these cultural differences and establishing a collaborative framework is crucial. If system requirements are not communicated accurately, misunderstandings and mistakes may occur, leading to project delays and affecting the quality of deliverables.

Having a bridge SE who understands both cultures and business practices, and who has strong technical and language skills, will ensure a smoother offshore development process.

Ease of Communication

Smooth communication is directly linked to project progress. First, check if communication in Japanese is smooth. Additionally, factors such as email response speed and the accuracy of answers to questions are also important indicators.

Furthermore, check whether the company has an established communication structure, including the tools used, regular meetings, and progress reports. Clear and precise explanations, as well as the ability to appropriately explain technical terms, are also crucial. By assessing these aspects, you can understand the company’s enthusiasm and responsiveness.

Choosing a development company with smooth communication will ensure that feedback is incorporated efficiently, increasing the chances of project success.

Proposal Capabilities

Proposal capability is a key criterion when choosing an offshore development company. A company with strong proposal skills will have the following characteristics:

• A deep understanding of business goals and challenges, allowing them to propose appropriate development methods
• Proactively suggesting specifications, required features, and operational methods
• Recommending the most suitable technologies and frameworks based on system requirements

For companies with little experience in offshore development, having a development company with strong proposal capabilities can be a great asset. Even if the development process and key considerations are unclear, the right company will provide appropriate support.

By selecting a development company with strong proposal capabilities, you can ensure not just the implementation of your instructions but also the creation of an effective system that directly contributes to your business success.

If You Are Considering Offshore Development in Vietnam, Contact "Solashi"

This article provided a detailed explanation of Vietnam’s IT industry, the benefits of offshore development, and how to choose a development company. Vietnam offers advantages such as a young and talented IT workforce, a small time difference with Japan, and cost efficiency, making it an ideal destination for offshore development. However, to maximize these benefits, choosing the right development company is crucial. Evaluate companies from multiple perspectives, including communication ability, technical expertise, and proposal skills, to find the best partner for your needs.

「Solashi Co., Ltd」 is a trusted offshore development company based in Vietnam. We ensure project success through the following features:

• Business-Oriented Development: We deeply understand our clients' business goals and propose the most suitable development processes.
• Step-by-Step Approach: We minimize risks by proceeding through Short Projects, MVP development, and full-scale development.
• Flexible Adaptation: With a lab-type contract, we can flexibly accommodate changes during the project.
• Japanese Language Support: Our team includes Japanese project managers with technical expertise and staff with business-level Japanese proficiency.
• Extensive Experience: We leverage our experience across various industries to provide high-quality solutions.

If you are considering offshore development, feel free to consult with 「Solashi Co., Ltd」. We provide the best IT development solutions to help achieve your business success.

Akira Shimazoe

Representative of Solashi Japan LLC. Born in April 1989 in Fukuoka Prefecture. Graduated from the Graduate School of Information and Mathematical Sciences at Osaka Prefecture University. Joined Suntory System Technology Co., Ltd., an IT subsidiary of Suntory Holdings, in 2014. Broadly responsible for the development, operation, and implementation of vending machine delivery management, efficiency improvements, and sales management systems. Founded Yper Inc. in 2017, serving as CTO and CPO. Contributed to the launch and growth of the app-linked delivery bag "OKIPPA." Selected for Toyo Keizai's prestigious "Amazing Venture 100" and Forbes' "Forbes 30 Under 30 Asia 2019."