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In recent years, Vietnam has been gaining popularity as a destination for offshore development.
Many companies are wondering, "I've heard that Vietnam is a popular choice for offshore development, but why?" or "I don't know which development company to choose."
In this article, we will explain why Vietnam is suitable for offshore development and introduce recommended development companies. Since we provide concrete guidelines for selecting excellent companies, we hope this will be helpful for those researching companies.
We also summarize the challenges faced by the entire offshore development industry in Vietnam. Issues such as poor development policies and low source code quality are often pointed out. From the perspective of "Solashi," which has excellent Vietnamese engineers and Japanese PMs, we will introduce specific countermeasures.
Supervisor Profile
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.
Current State and Trends of Offshore Development in Vietnam
Offshore development refers to outsourcing the development and operation of software, web systems, and mobile applications to overseas development companies.
Since it offers benefits such as cost reduction and access to skilled labor, many Japanese companies are implementing it. Let's take a look at the current state and trends of offshore development in Vietnam.
Vietnam is a Popular Destination for Offshore Development
Vietnam overwhelmingly stands out as the most popular country for offshore development. According to the ranking in the "Offshore Development White Paper (2023 Edition)" published by Offshore Development.com, Vietnam ranks first, highlighting its popularity.
＜Ranking of Offshore Development Destination Countries＞
1st: Vietnam (48%)
2nd: Philippines (21%)
3rd: India (13%)
4th: Bangladesh (8%)
5th: China, Myanmar (4%)
(Source: Offshore Development White Paper (2023 Edition) │ Offshore Development.com)
In the past, China was a popular offshore development destination for Japanese companies due to its low labor costs. However, as labor costs in China have surged, the trend has shifted. Vietnam is gaining popularity not only because of its lower development costs but also due to its pro-Japanese sentiment and diligent workforce.
The Vietnamese Government is Focusing on IT Talent Development
Vietnam is actively promoting IT talent development at a national level. As a national policy, the country is fostering IT engineers under its Industry 4.0 initiative, which aims to digitalize the manufacturing sector. By 2030, Vietnam plans to produce 1.5 million IT professionals.
According to the "Vietnam IT Market Report 2023," the number of IT professionals working in Vietnam’s computer science and IT industry reached 530,000 in 2023. The number of students majoring in IT-related fields at universities has been increasing by approximately 50,000 annually from 2019 to 2022.
Additionally, about 90% of Vietnam's IT professionals are concentrated in urban areas:
Ho Chi Minh City: 55.3%
Hanoi: 34.1%
Da Nang: 5.9%
Capable of Advanced Development Skills
The skill level of Vietnamese IT professionals has significantly improved compared to 10 years ago. Previously, many could only handle frontend technologies like HTML and CSS.
However, nowadays, they can proficiently work with various programming languages, frameworks, and libraries, including:
Programming Languages:
Ruby, JavaScript, Java, Python, Swift, Kotlin, Flutter, PHP, TypeScript, Go, Dart, C, C++, C#, Solidity, Rust
Frameworks:
Vue.js, Rails, Laravel, React.js, CakePHP, Django, Node.js, Solidity, Next.js, React Native
Companies with higher technical expertise can also handle cloud systems, enterprise systems, AI, and blockchain. Some specialize in Fintech, SAP, Salesforce package development, GCP, AWS infrastructure design, and CI/CD implementation.
