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IT Outsourcing in Vietnam: 2026 Market Report on Size, Share, Trends and Costs

Market size and growth, senior rates, English levels, employer costs, risks and how to choose an outsourcing company in Vietnam that fits your team.

Written byTam HoCEO and co-founder, InApps Technology
Published
Read time
44 min
Sources
37 cited
an hour for a senior engineer, InApps Technology rate benchmark [4]
$30–50
programmers in Vietnam, TopDev 2023 [1]
~530,000
Vietnam's time zone, 6 hours shared with Brisbane
UTC+7
of 78 countries, Kearney Global Services Location Index 2023 [23]
7th

Ho Chi Minh City, Vietnam

Executive summary

Vietnam at a glance

Vietnam is not the cheapest place to outsource: at every seniority level it prices within a few dollars of India. Choose it for fit instead. Teams in Australia and New Zealand share most of the working day, the market has about 530,000 programmers, and English holds up better in written work than on calls. For US teams it works only with a handover model, not a shared day.

What the evidence says

FactorKey findingImplication for buyers
CostUS$30–50/hour for a senior engineer through a vendor, against US$65/hour for a US developer’s salary alone. Within a few dollars of India at every level. [4][5]For 3 senior engineers: US$187K–312K a year all-in, against US$408K in US salaries alone. Price will not separate Vietnam from India.
Talent~530,000 programmers (2023). About 3 in 10 of the 57,000+ engineers entering the market each year meet employer requirements. [1]Supply is not the constraint; seniority is. Ask how many engineers with 5+ years on your stack can start this month.
EnglishEF EPI 2025: 500, 64th of 123. Reading 522 against speaking 461. [2][3]Run the work in writing. Test spoken English in the lead who will join your calls.
Time zone6 shared working hours with Brisbane, 5 with Sydney, 2 with London, 0 with New York.Australia and New Zealand: one team across the day. US: a written end-of-day handover.
Delivery modelFirst engineer in 1–2 weeks (staff augmentation), a dedicated team in 4–6, an offshore development center in 6–8 (InApps Technology data).Choose by who manages the engineers day to day. The price follows from that choice.
Cost outlookSalaries +7.7% in 2025 and +6.6% in 2026, +6.7% budgeted for 2027. The dong lost 3.2% to the dollar in 2025. Staff turnover 16.2%. [35][36]Budget about 4% a year in US dollars and put a rate-review clause in any contract longer than a year.

Who Vietnam fits

  1. 01Strong fit: teams in Australia, New Zealand and Asia that work written-first.
  2. 02Needs a handover model: US teams share no office hours, and London about two.
  3. 03Not a reason on its own: the lowest hourly rate. India prices within a few dollars.
InApps Technology · Insight · 2026
Chapter 01 / Market

Vietnam IT market report 2026: size, share, growth, trends and cost forecast

A US$152bn industry, mostly hardware. Software sits inside the remaining 13%, and Ho Chi Minh City takes 3 in 4 IT hires.

Independent figures only: Vietnam's ministries and statistics office, TopDev, ITviec, EF and Kearney. Each section is tagged with the force behind it, political, economic or social; each chart names its source and year, and the full dataset is downloadable.

54,500 active digital technology firms, 2024 [12]

12,500 software9,700 IT services

224,000+ people working in software firms, 2024 [12]

Across the 12,500 software firms counted the same year

US$7.5bn earned abroad by Vietnamese digital technology firms, 2023 [15]

By about 1,500 firms

1.1MarketEconomic

Market size: a US$152bn industry, mostly hardware

Most of the US$152bn is hardware exports. Software sits inside the remaining 13%.

Digital technology (formerly ICT) industry revenue, US$ billion
2024: what the US$151.9bn is made of
US$19.6bn · 13%Everything else, including software and IT services
US$132.3bn · 87%Hardware and electronics exports
Total revenue, US$ billion

2024 US$151.9bn, up 6.9% on 2023

124.72020
136.22021
148.02022
142.02023
151.92024

Up about a fifth since 2020. Ministry estimate for 2025: US$198bn.

Source: Ministry of Science and Technology, year-end figures [12][13][14][16][17]

Notes on the data

Source: Ministry of Information and Communications (Ministry of Science and Technology from 2025), year-end figures as reported by Báo Đầu tư and VnEconomy. The 13% is the 2024 total minus hardware and electronics exports (US$151.9bn − US$132.3bn). The 2023 dip is the exchange rate: revenue rose in VND. Other published figures for 2023 and 2025 are in the dataset.

US$132.3bnhardware and electronics exports, 202487% of the industry's US$151.9bn revenue [12]
US$198bnministry estimate for 2025Revenue grew about a fifth from 2020 to 2024. Other published figures are in the dataset.

InApps viewThe US$152bn is an electronics figure. A software buyer is shopping in the 13% beside it: 12,500 software firms, all competing for the same senior engineers.

1.2MarketPolitical

Digital economy growth: 14% of GDP, 30% by 2030

Policy sets the pace: the digital economy is 14% of GDP, and the 2030 target is 30%.

Digital economy, share of GDP
14.02%of GDP in 2025, up from 12.87% in 2021
30%target for 2030

Source: National Statistics Office; Resolution 57-NQ/TW [18][19]

Notes on the data

Source: National Statistics Office, as reported by VnEconomy (Jan 2026); target from Politburo Resolution 57-NQ/TW (22 Dec 2024), which aims for at least 30% of GDP by 2030.

30%of GDP by 2030The target in Politburo Resolution 57-NQ/TW, December 2024 [19]

InApps viewPolicy is pulling the economy toward digital work through 2030, so local demand for senior engineers will keep rising. On a multi-year engagement, agree how rate increases are handled before you sign.

1.3MarketSocial

IT job market: share of hiring by city

Ho Chi Minh City takes 3 in 4 IT hires.

Share of IT hiring demand by city
202368%HCMC30.6%Hanoi
H1 202476.7%HCMC21.4%Hanoi
Orange: Ho Chi Minh City. Dark: Hanoi.
Da Nang, the light sliver at the end: 1.4% in 2023, 1.9% in H1 2024.

Source: ITviec 2024-2025 [21][20]

Notes on the data

Hiring shares: ITviec Vietnam IT Salary & Recruitment Market Report 2024-2025. 55%+ of developers work in Ho Chi Minh City, 2024 (TopDev, as reported by the press).

76.7%of IT hiring demand, Ho Chi Minh City, H1 2024Hanoi 21.4%, Da Nang 1.9% [21]
55%+of developers work in Ho Chi Minh City, 2024TopDev, as reported by the press [20]

InApps viewWith 3 in 4 IT hires in one city, every senior engineer has other offers. Vendors differ less on who they can recruit than on who they keep: ask for 12-month retention on comparable teams.

1.4MarketEconomic

Developer salaries in Vietnam, 2025–2026

A back-end engineer's pay rises about 4x from year one to 8+ years.

Median monthly salary, back-end developers, million VND
< 1 year12.4
1–2 years25.4
3–4 years30.1
5–8 years39.9
8+ years54.9
Tech lead51.8
CTO / CIO / VPoE101.3

Source: ITviec 2025-2026, 1,839 respondents [21]

Notes on the data

Source: ITviec Vietnam IT Salary & Recruitment Market Report 2025-2026, back-end developers, survey of 1,839 people (May to Nov 2025). The previous edition defines its figures as gross monthly medians excluding bonus. These are what engineers earn, not what a vendor charges.

54.9M VNDmedian a month after 8+ yearsAgainst 12.4M VND in the first year [21]
101.3M VNDmedian for CTO, CIO and VPoEThese are what engineers earn, not what a vendor charges.

InApps viewPay roughly quadruples from first year to eight, so a blended rate can hide a junior-heavy team. Ask for the seniority mix behind the quote, by name and years.

1.5Market

Vietnam vs India and 4 other outsourcing destinations

Vietnam ranks 7th of 78 on Kearney's location index, mid-table on English.

6 outsourcing destinations
CountryKearney GSLI 2023 rankEF English score 2025Tech hub time zone
India148474th · LowUTC+5:30 New Delhi
Malaysia358124th · HighUTC+8 Kuala Lumpur
Vietnam750064th · ModerateUTC+7 Ho Chi Minh City
Mexico10440103rd · Very lowUTC−6 Mexico City
Philippines1256928th · HighUTC+8 Manila
Poland1360015th · Very highUTC+1 Warsaw, +2 in summer

Source: Kearney GSLI 2023; EF EPI 2025 [22][23][24]

Notes on the data

Kearney Global Services Location Index 2023, 78 countries (no newer edition). EF English Proficiency Index 2025, out of 123. Time zones from the IANA database. Rates and talent-pool sizes are left out on purpose: no independent source measures them the same way in all six countries.

InApps viewUse this table to build a shortlist, not to pick a winner. Malaysia scores higher than Vietnam on both the index and English, in almost the same time zone. Vietnam’s case rests on what the table leaves out: a pool of about 530,000 programmers (2.1).

What the rankings miss

  • Winter cuts the shared day. Vietnam has no daylight saving, so overlap with London drops from 3 hours in July to 2 in January (2.3).
  • EF scores the country, not your team. Test the written English of the engineers you will work with, in tickets and pull requests (2.2).
1.8MarketEconomic

Cost forecast: Vietnam salary increase 2026–2027, in US dollars

Salaries rise about 7% a year. A weaker dong gives back about 3 points, so in US dollars the rise is closer to 4%.

Salary increase in Vietnam, and what it means in US dollars
  1. 2025Actual
    +7.7%salaries−3.2%dong vs US$≈ +4.3%in US$
  2. 2026Estimate
    +6.6%salaries−2.5 to 3%dong vs US$≈ +3.5 to 4%in US$
  3. 2027Budgeted
    +6.7%salariesNo consensusdong vs US$up to +6.7%in US$

Source: Aon Salary Increase and Turnover Study 2026; State Bank of Vietnam central rate; MBS; US$ figures are InApps Technology calculations [35][36][37]

Notes on the data

Salary increases are Aon's all-industry figures for Vietnam (more than 1,200 companies across six Southeast Asian countries, July–September 2026); 2027 is the budgeted increase. Aon's previous edition put technology at the top in Vietnam, at 7.1% budgeted for 2026. The dong: the State Bank of Vietnam's central rate rose 3.23% in 2025 (25,121 VND per US$ on 31 December); MBS expects 2.5–3% in 2026; for 2027 bank forecasts range from roughly flat to about 5%, so no figure is shown. Rise in US$ = (1 + salary increase) ÷ (1 + rise in the dollar) − 1. Vendor rates do not move one-for-one with salaries: they also carry office, benefits and margin. For context, the government targets at least US$300bn of digital technology revenue by 2030 (Decision 840/QĐ-TTg) and a digital economy of 30% of GDP [34][19]: both point to more local demand for the same engineers.

16.2%staff turnover in Vietnam, 2026About 1 in 6 employees a year, up from 15.0% in 2025 [35]
~17,000job-ready engineers added a yearAbout 3 in 10 of the 57,000+ entering the market [1]

InApps viewBudget for about 4% a year in US dollars, not the 7% headline, and put a rate-review clause in any contract longer than a year. With 1 in 6 people leaving each year, ask how a vendor replaces an engineer and who pays the ramp-up.

Chapter 02 / Why Vietnam

Why companies are outsourcing to Vietnam in 2026

Three things bring engineering leaders to Vietnam: the size of the engineering pool, English that works well in written collaboration, and a time zone that suits Australia and Asia.

530K programmers in Vietnam, 2023 [1]

About 3 in 10 of the 57,000+ engineers entering the market each year meet employer requirements

522 461 English reading against speaking, EF EPI 2025 [2]

Reading 522 · writing 508 · listening 470 · speaking 461

UTC+7 Vietnam's time zone, 3 hours behind Brisbane

6 shared office hours a day with Brisbane, 9:00–18:00 on both sides

2.1Why VietnamSocial

A large engineering pool, with seniors as the scarce part

About 530,000 people work as programmers in Vietnam. Ask any vendor how many engineers with five or more years on your stack can start this month.

The pool is large. The part you need is narrow.
  1. ~530,000programmers in Vietnam, 2023
  2. Fewerhave five or more years on your stack
  3. Ask the vendorhow many can start this month, and interview them by name

Not to scale: only the top number is published. Source: TopDev 2023 [1]

~30%meet employer requirementsof the engineers who enter the job market each year [1]
Ho Chi Minh City · each year57,000+engineers enter the job market [1]

InApps view530,000 is the market. What you are buying is the handful of seniors on your stack who can start this month, so ask for names and CVs before you compare rates.

2.2Why VietnamSocial

English that works best in writing

Written specs, tickets and pull request reviews work well with most Vietnamese engineers, while spoken fluency on live calls varies from person to person.

English sub-scores, Vietnam, EF English Proficiency Index 2025
In writing
Reading522
Writing508
On live calls
Listening470
Speaking461

Vietnam's overall score is 500, 64th of 123. Source: EF EPI 2025 [2][3]

61 pointsbetween reading and speakingTest spoken English on a live call in the interview, not the vendor's average.
500overall score, 64th of 123Moderate proficiency. The Philippines scored 569 and India 484 in the same index [3]

InApps viewRun the engagement in writing: specs, tickets, pull request reviews. Keep live calls for decisions, and test spoken English where it matters most, in the lead who will be on your calls.

2.3Why Vietnam

A time zone that suits Australia and Asia

For Australian and New Zealand companies, outsourcing to Vietnam works much like a nearshore setup: your team and theirs share most of the working day.

Your 9:00–18:00 working day, shown in Ho Chi Minh City time
Your cityHo Chi Minh City 9:00–18:00Shared
Brisbane3 h ahead6 h
Sydney4 h ahead5 h
Auckland6 h ahead3 h
London7 h behind2 h
New York12 h behind0 h

Hours in Ho Chi Minh City time (UTC+7, no daylight saving), January. Source: IANA time zone database

6 hoursshared with Brisbane each daySydney 5, Auckland 3 and London 2 hours of the same working day.
0 hoursshared with the continental USThe US sits 11 to 15 hours behind, which means a handover model, not a shared day.

InApps viewFrom Brisbane you share 6 working hours, enough to run one team. From London it is about 2 and from New York none, where a written end-of-day handover is the operating model, not a fallback.

2.4Why Vietnam

3 things to check before you sign

Each one has a caveat worth knowing before you sign.

  • Senior supplyAsk how many engineers with five or more years on your stack can start this month, and ask for names you can interview.
  • Spoken EnglishIf your team runs on daily calls, test spoken English in the interview rather than trusting a vendor's average.
  • Overlap hoursName the meetings that need live overlap, and run everything else through written handovers.
2.5Why Vietnam

The full analysis

About 530,000 people work as programmers in Vietnam, and more than 57,000 engineers enter the job market each year, of whom about 30% meet employer requirements, according to TopDev's Vietnam IT Market Report 2023 [1]. Most software developers in Vietnam work in Ho Chi Minh City and Hanoi, with Da Nang as a smaller third hub.

Graduate numbers say little about senior supply. Ask any vendor how many engineers with five or more years on your stack can start this month, and ask for names you can interview, not a company headcount.

Vietnam scored 500 on the EF English Proficiency Index 2025, ranking 64th of 123 countries and 7th in Asia, inside the "moderate proficiency" band [2]. The skill breakdown matters more than the headline: reading (522) and writing (508) score well above listening (470) and speaking (461) [2]. Hanoi leads the country at 532 [2].

In practice, written specs, tickets and pull request reviews work well with most Vietnamese engineers, while spoken fluency on live calls varies from person to person. For comparison, the Philippines scored 569 (28th) and India 484 in the same index [3].

Vietnam runs on UTC+7. Brisbane is 3 hours ahead, Sydney and Melbourne are 3 to 4 hours ahead depending on daylight saving, and Auckland is 5 to 6 hours ahead.

London gets an afternoon overlap of a few hours. The continental US sits 11 to 15 hours behind, which means a handover model, not a shared day. US teams that do well with Vietnam run asynchronously, with written updates and a short, agreed window of live time.

Chapter 03 / Costs

What IT outsourcing in Vietnam costs in 2026

Rates depend on seniority, stack and engagement length.

$30–50 an hour for a senior engineer, InApps Technology rate benchmark [4]

US$65 is a US developer's salary alone, per hour [5]

+23.5% employer contributions on top of a Vietnamese salary [6][7]

Social 17.5% · health 3% · unemployment 1% · union 2%

$135,980 US median annual wage, software developers, May 2025 [5]

A senior engineer in Vietnam at $30–50 an hour for 2,080 hours: $62,400–104,000

3.1Costs

A Vietnam team costs less all-in than the same team's US salaries alone

Change the number of senior engineers to see the yearly cost on both sides.

Senior engineers
3
United StatesMedian salaries alone
$408Ka year, $33,995 a month, plus employer costs
VietnamThrough a vendor, all-in
$187K–312Ka year, $15,600–26,000 a month
Illustration, not a quote: $30–50 an hour for 2,080 hours a year, against the US median annual wage of $135,980 [5]. The hatched part stands for US employer costs, which are not measured. [4][5]
Get an estimate for your stack

InApps viewAt 3 senior engineers the gap is US$96K–221K a year, before US employer costs. Reinvest part of it in the management time that makes a remote team work (3.4).

3.2Costs

Hourly rates by seniority

Vietnam and India price within a few dollars at every level.

Hourly rates by seniority, USD, 2026
SeniorityVietnam (USD/hour)India (USD/hour)
Junior (0-2 years)$15-$22$16-$22
Mid-level (2-5 years)$20-$32$24-$34
Senior (5-8 years)$30-$50$35-$48
Lead / Architect (8+ years)$45-$65$50-$65

Source: InApps Technology rate benchmark, vendor data [4]

$30–50an hour for a senior engineer (5–8 years)Juniors from $15, leads up to $65. Vendor data [4]
≈ Indianot the lowest-priced optionIf the lowest hourly rate is your only criterion, you have other choices.

InApps viewVietnam and India price within a few dollars at every level, so the rate will not separate them. Time zone, written English and the engineers you interview will.

3.3CostsPolitical

What it costs to hire directly instead

Vietnamese law adds 23.5% to every salary. Hire directly and you carry all of this; through a vendor, one rate.

Employing in Vietnam: what an employer pays on top of salary
+23.5% on top of every gross salary, before any other cost
  • Social insurance 17.5%
  • Health insurance 3%
  • Unemployment insurance 1%
  • Trade union fee 2%
Hire directly: you also run
  • Legal entity or employer of record
  • Monthly payroll
  • Income tax withholding, new law from 1 July 2026
Through a vendor

One rate per engineer

An outsourcing company in Vietnam absorbs contributions, payroll, income tax and the legal entity.

Source: Vietnam social, health and unemployment insurance laws [6][7][8]

Notes on the data

Social and health insurance are capped at 20 times the statutory base salary: VND 2,530,000 a month from 1 July 2026, so a cap of VND 50.6 million a month [7].

InApps viewHiring directly adds 23.5% on every salary, plus an entity, payroll and tax filing. For a small team that overhead outweighs the saving; it pays only for a permanent, larger presence.

3.4Costs

What the rate leaves out

The hourly rate is the smallest part of the decision. Budget for the time and friction around it too.

Costs that sit outside the hourly rate
CostWhat drives itHow to keep it down
Ramp-upNew engineers ship less while they learn your codebase, tools and domain.Start them on a small, well-documented area and pair them with your engineers for the first weeks.
Management timeYour engineering lead sets priorities, reviews code and answers questions.Name one owner on your side, and write tickets someone can pick up without a call.
Knowledge transferContext lives in people's heads until it is written down.Recorded decisions, architecture notes and a definition of done from week one.
TurnoverEach replacement restarts part of the ramp-up.Get retention figures and replacement terms in writing, and keep knowledge in your repository.
Travel and toolsA kick-off visit, plus licences and seats for the extra people.Plan one visit a year and add the seats before day one.
Security set-upAccounts, device policy and access reviews for a new group.Use your own single sign-on and least-privilege access from the start.
What your team's time costs

Hours a week your engineers spend directing the outsourced team

5

$17,000 a year

5 h × 52 weeks × $65.38 an hour, the US median software developer wage ($135,980 ÷ 2,080 hours) [5]

Illustration, not a quote. Set your own hours.

InApps viewThe line missing from most budgets is your own time. Five hours a week of a US lead is about US$17,000 a year: count it before comparing vendor quotes.

3.6Costs

The full analysis

The table above shows typical 2026 hourly rates for Vietnam and India from InApps Technology's published rate benchmarks [4].

To put the senior range in context: the median annual wage for software developers in the United States was $135,980 in May 2025 [5]. Spread over a standard 2,080-hour year, that is about $65 an hour in salary alone, before payroll tax, benefits, recruiting fees and office costs. A senior engineer in Vietnam at $30 to $50 an hour through a vendor already includes those costs.

For a full breakdown, including AI and DevOps premiums and the hidden costs most quotes leave out, see our guide to IT staff augmentation cost and rates.

The table shows something many first-time buyers of Vietnam software outsourcing miss: Vietnam and India price within a few dollars of each other at every level. Companies that pick Vietnam usually do it for the time zone fit with Asia-Pacific, the depth of the engineering market, and English that holds up well in written work.

Some companies consider skipping the vendor and employing software developers in Vietnam themselves. The salary is only part of the bill. On top of gross salary, a Vietnamese employer pays 17.5% social insurance, 3% health insurance and 1% unemployment insurance [6], plus a 2% trade union fee [7]. That is 23.5% before any other cost.

Social and health insurance contributions are capped at 20 times the statutory base salary [6][7]. The base salary rose to VND 2,530,000 a month on 1 July 2026 under Decree 161/2026/ND-CP [7], which puts the cap at VND 50.6 million a month. You also need a legal entity or an employer of record, monthly payroll, and personal income tax withholding under a new tax law that took effect on 1 July 2026 [8]. An outsourcing company in Vietnam absorbs all of this, so you pay one rate per engineer.

Chapter 04 / Models

4 ways to outsource IT work to Vietnam

Before you compare vendors, decide which model you need.

1–2 weeks to the first engineer through staff augmentation

Adding 1–5 engineers to a team you already run

4–6 weeks to start a dedicated team of 3–8 engineers

You set priorities, the vendor runs delivery

6–8 weeks to start an offshore development center

10+ engineers and a long-term offshore base

4.1Models

Which model fits

The right Vietnam IT outsourcing company for a fixed-scope project is rarely the right one for adding two engineers to your sprint.

4 models, ordered by who manages the engineers
  1. IT staff augmentation

    If you already have engineering leads and need more capacity

    Managed by
    You
    Team
    Adding 1–5 engineers to a team you already run
    Start
    1–2 weeks for the first engineer
  2. Dedicated team

    If you want engineers working as one unit on your roadmap

    Managed by
    You set priorities, the vendor runs delivery
    Team
    3–8 engineers working as one unit
    Start
    4–6 weeks
  3. Offshore development center (ODC)

    If you want a long‑term offshore base

    Managed by
    You, with your own facility run by the vendor
    Team
    10+ engineers
    Start
    6–8 weeks
  4. Project-based outsourcing

    If you can write the full scope today and nobody on your side can manage engineers

    Managed by
    The vendor
    Team
    Fixed scope that is not core to your product
    Start
    2–3 weeks of paid discovery, then a firm quote

Model descriptions: InApps Technology.

InApps viewChoose the model by who will manage the engineers day to day, not by price. Without a lead on your side, staff augmentation costs more than it saves.

4.2Models

The full analysis

If you already have engineering leads and need more capacity, you are looking for an IT staff augmentation company in Vietnam, not a project vendor. Staff augmentation in Vietnam keeps your roadmap, repositories and code review in your hands, while the vendor handles hiring, payroll and HR.

If you can write the full scope today and nobody on your side can manage engineers, project-based outsourcing is the better fit. Our comparison of staff augmentation vs outsourcing walks through the break-even point with a worked example, and this side-by-side of staff augmentation, dedicated teams and ODCs covers the larger setups.

Chapter 05 / Risks

Risks of software outsourcing in Vietnam, and how to manage them

None of them is a reason to avoid the market. All of them are reasons to ask sharper questions.

05Key takeaways
See the five risks
5 risks, each with what to do about it

Each comes with two or three actions

12 months the engineer retention rate to get in writing

Risk 02: senior engineers get competing offers

Day one IP assigned to you from the first commit

Risk 04: IP and data protection

5.1Risks

5 risks and what to do about each

A team without someone on your side to set priorities will drift, whichever country it sits in.

  1. 01

    Spoken English varies by person

    • Interview every engineer in English, on a live call, before they join
    • Work written-first: clear tickets, recorded decisions, short async updates
  2. 02

    Senior engineers get competing offers

    • Get the 12-month engineer retention rate in writing
    • Agree replacement terms if someone leaves
    • Keep knowledge in your repository, not in one person's head
  3. 03

    US time zones need a handover model

    • Plan for asynchronous work from day one
    • Name the meetings that need live overlap, and shift those hours in the contract
    • Run everything else through written handovers
  4. 04

    IP and data protection

    • IP assigned to you from the first commit
    • NDA in place before anyone touches your code
    • See the security certificate and its scope statement
    • Map to GDPR, the Australian Privacy Principles [9], the NZ Privacy Act 2020 [10] or HIPAA
  5. 05

    Management time is a real cost

    • Budget your engineering manager's time: they direct the work
    • Name someone on your side to set priorities, or the team will drift
5.2Risks

The full analysis

Software outsourcing in Vietnam carries the same risks as any offshore engagement, plus a few local ones. The EF data above shows the gap between written and spoken English. Experienced engineers in Ho Chi Minh City and Hanoi are in demand, and a vendor with weak retention will hand you a new face every few months.

With staff augmentation, your engineering manager directs the work. Our guide to the risks of IT staff augmentation covers eight risks and how to mitigate each.

Chapter 06 / Choosing a partner

How to choose an outsourcing company in Vietnam

Rankings of the top IT outsourcing companies in Vietnam on Clutch and similar directories are a starting point, not a shortlist.

06Key takeaways
See the five steps
5 steps from a directory to a paid pilot

Directories, reviews, the 8 questions, answers in writing, a pilot

8 questions to ask every vendor you shortlist

Talent · retention · way of working · IP and security · commitment

1 pilot short and paid, before a full team

Set up, build one real feature, then decide

6.1Choosing a partner

5 steps to a shortlist

Read client-interview reviews, ask every vendor the same eight questions, and get the answers in writing.

  1. 1Start from directoriesClutch and similar rankings
  2. 2Read client-interview reviewsWhere the directory talks to clients directly
  3. 3Ask the 8 questionsTo every vendor you shortlist
  4. 4Get specifics in writingAll eight answers
  5. 5Second call, then a pilotShort and paid, before a full team
6.2Choosing a partner

8 questions to ask every vendor

A search for IT outsourcing Vietnam returns hundreds of vendors. Read reviews where the directory interviews clients directly, then put these questions to every vendor you shortlist.

A vendor that answers all eight with specifics, in writing, is worth a second call.

  1. Talent

    How many engineers with five or more years on our stack can start this month, and can we interview them by name?

    InApps: The first engineer usually starts within 1 to 2 weeks.

  2. Talent

    What does your vetting process test, and what share of applicants pass?

    InApps: Four stages, including a B2+ English test. 3% of applicants pass.

  3. Retention

    What is your 12-month engineer retention rate, and what happens if an engineer leaves?

  4. Way of working

    Will we talk to the engineers directly, or through a project manager?

    InApps: Directly, with no project manager in between.

  5. Way of working

    Will our engineers work only on our product, or across several clients?

    InApps: Only on your product.

  6. IP and security

    Who owns the IP, and from what point?

    InApps: You do. All IP belongs to the client.

  7. IP and security

    Which security certification do you hold, and can we see the scope statement?

    InApps: ISO/IEC 27001:2022.

  8. Commitment

    Can we start with a short paid pilot before committing to a full team?

For a deeper checklist, see how to choose a staff augmentation partner.

6.3Choosing a partner

How to run a pilot

A pilot only tells you something if you decide before it starts what a pass looks like.

A 6-week pilot, from set-up to decision
  1. Week 1Set upAccounts, repository access, environments and a first small change merged.
  2. Weeks 2–5BuildOne real feature that is not on your critical path, worked in your sprints and reviewed by your engineers.
  3. Week 6DecideReview against the criteria you wrote on day one.
Agree before day one
  • The feature, and what done means
  • Who on your side reviews the code
  • The rhythm: stand-ups, written updates and a weekly demo
  • Three or four pass criteria, such as pull requests that pass your review without rework
  • Who makes the call in week six
In week six, decide
Scale
The criteria are met. Add people on the same terms.
Adjust
Some are met. Change the team or the scope and run one more short cycle.
Stop
They are missed. End it, with the code already in your repository.

InApps viewAgree the pass criteria in writing before week 1. A pilot without them ends in an opinion, and you will have paid six weeks for it.

6.4Choosing a partner

The first 90 days, and what to measure

Measure what the team delivers, not the hours it bills.

Milestones for a new team
  1. Week 1Access and a first commitAccounts, environments and a small change merged.
  2. Day 30Shipping in your sprintsPull requests merged every week, reviewed by your team.
  3. Day 60Owning a componentOne area of the code where they lead the changes.
  4. Day 90Part of the release cycleOn the rota for releases and incidents, with documentation others can follow.
What to measure
MetricWhat it tells youWatch for
Change lead time [33]How long a change takes from commit to production.It grows as the team grows.
Deployment frequency [33]How often work reaches your users.Big batches and rare releases.
Change fail rate [33]The share of releases that cause a problem.Speed bought with quality.
Failed deployment recovery time [33]How quickly a bad release is fixed.Fixes that wait for one person.
Review turnaroundHow long pull requests wait for a review.Reviews stuck in either direction.
Escaped defectsBugs your users find before your tests do.A count that rises after each release.

The first four are DORA's software delivery metrics [33]. Hours billed tells you what you paid, not what you got.

InApps viewBy day 30 the team should be merging work in your sprints. If it is not, raise it then: problems left until day 90 become contract renegotiations.

EndAbout this report

Where InApps fits

Disclosure

This report is published by InApps Technology, a Vietnam IT outsourcing company. The hourly rate table, the team budget, typical start times and everything in this section are InApps Technology figures, labelled as such. They are not market data. Every other figure comes from the independent sources in the References.

About the author
Tam Ho in the InApps office
Tam HoCEO and co-founder, InApps Technology

Founded InApps in 2016.

Meet the leadership team
About InApps

InApps Technology is a Vietnam IT outsourcing company founded in 2016. We have delivered 750+ projects for clients in 15+ countries, hold a 4.9/5 rating across 39 verified reviews on Clutch [11], and are certified to ISO/IEC 27001:2022.

Engineers pass a four-stage vetting process with a 3% pass rate, including a B2+ English test. Your engineers work only on your product and talk to your team directly, with no project manager in between.

  • Clutch
  • Clutch Top Software Developers, Enterprise, Vietnam
  • Clutch Top AI Companies, Vietnam 2025
  • Sao Khuê 2025
A straight answer on which model fits. Book a call
AAppendix

Questions, data and sources

A1FAQ

Frequently asked questions

Yes, for most software engineering work. Vietnam has about 530,000 programmers, English that works well in written collaboration, and a time zone that overlaps Australia and Asia for most of the working day. It is a weaker fit if you need fluent spoken English on long live calls, or full-day overlap with US teams.
In 2026, senior engineers typically cost $30 to $50 an hour through a vendor, mid-level engineers $20 to $32, and leads or architects $45 to $65. The final rate depends on your stack, seniority mix and engagement length.
Not by much. Vietnam and India price within a few dollars of each other at every seniority level. Companies usually choose between them on time zone, English profile and the vendor's retention record, not on rate.
Both sit in a time zone that suits Australia. The Philippines scores higher on spoken English (569 vs 500 on the EF EPI 2025), which matters for voice-heavy and customer-facing work. For software engineering teams that work through code, tickets and written specs, Vietnam is a strong option with a large engineering pool.
At InApps Technology, the first engineer for staff augmentation usually starts within 1 to 2 weeks, a dedicated team takes 4 to 6 weeks, and a full offshore development center takes 6 to 8 weeks.
You should. Make sure your contract assigns IP to you from the first commit and that an NDA is signed before anyone accesses your systems. At InApps Technology, all IP belongs to the client.
Vietnam's digital technology industry earned US$151.9bn in 2024, but 87% of that (US$132.3bn) was hardware and electronics exports. Software and IT services sit inside the remaining 13%, about US$19.6bn, across 12,500 software firms and 9,700 IT services firms.
Yes. Industry revenue rose from US$124.7bn in 2020 to US$151.9bn in 2024, about a fifth, and the ministry estimates US$198bn for 2025. The digital economy grew from 12.87% of GDP in 2021 to 14.02% in 2025, against a 2030 target of 30%.
Four stand out: hiring is concentrating in Ho Chi Minh City (76.7% of IT hiring demand in H1 2024, up from 68% in 2023), the digital economy keeps gaining share of GDP, new laws give software production tax incentives, and from 1 January 2026 sending personal data out of Vietnam needs a transfer impact assessment.
ITviec's 2025-2026 survey puts the median monthly salary for back-end developers at 12.4 million VND with less than a year of experience and 54.9 million VND after 8 years or more. Tech leads earn a median 51.8 million VND a month.
Aon's 2026 salary survey puts salary increases in Vietnam at 7.7% in 2025 and 6.6% in 2026, with 6.7% budgeted for 2027, the highest projected in Southeast Asia. Outsourcing contracts are usually priced in US dollars, and the dong lost 3.23% against the dollar in 2025, which offsets part of the rise: in dollar terms salaries rose about 4%. Staff turnover was 16.2% in 2026, so ask each vendor how it replaces people. [35][36]
A2Data and method

Data and method

Independent sources

Ministry and statistics office figures, TopDev and ITviec reports, EF, Kearney, IANA, US BLS, PwC, and law firms for the legal summary. Most ministry figures reach us through press reports of the ministry's year-end review; we name the outlet and date.

InApps Technology's own data

The hourly rate table, the team budget, typical start times and everything in "Where InApps fits" are InApps Technology figures, labelled as such. They are not market data.

Left out on purpose

Per-country vendor rates and talent-pool comparisons (no independent source measures them alike), Statista's modelled outsourcing market size, and a 560,000 workforce figure we could not trace to its report.

Known conflicts between sources

  • 2023 industry revenue: US$142bn (Jan 2024 report) and US$137bn (Dec 2024 report). The chart uses 142.
  • 2025 industry revenue: US$198bn (Dec 2025 ministry estimate) and US$215bn (Aug 2026, no named source). The chart shows 198 as an estimate.
  • Digital technology firms: 54,500 in 2024 and an estimated 80,052 in 2025, reported as +10%, which suggests the counting method changed.
  • 2025 growth: the ministry reports +26% on 2024, which implies a 2024 base near US$157bn, not the US$151.9bn first reported. The charts keep the reported figures.
Cite asInApps Technology, "IT Outsourcing in Vietnam: 2026 Market Report on Size, Share, Trends and Costs", 23 October 2026. Data checked 23 October 2026.
A3References

References

All 37 sources
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