Average IT Salary in Vietnam: A Guide for Outsourcing Decisions

Key Takeaways:

• The average IT salary in Vietnam is approximately USD 593.47. See detailed salaries for popular IT roles and find how Vietnam compares with other Southeast Asian countries.
• Outsourcing to Vietnam offers cost benefits and skilled talent but comes with potential time zone challenges. Join ERA to explore the advantages, drawbacks, and tips for a successful outsourcing experience in Vietnam.

Overview of the IT Industry in Vietnam

1. Current Landscape of IT in Vietnam:

Vietnam’s IT services market is projected to reach $1.99 billion by 2024, fueled by a young, skilled, and cost-effective workforce. To support this, the Ministry of Education and Training has implemented reforms to enhance IT programs, focusing on areas like computer science, software engineering, and information security.

2. Key Sectors Relying on IT Talent:

Decision No. 749/QD-TTg, approving the National Digital Transformation Program to 2025, emphasizes high-quality IT training across industries like gaming, fintech, e-commerce, and healthcare, further enhancing Vietnam’s attractiveness as an outsourcing destination for software development and digital transformation.

Revenue by segment in the Vietnamese IT industry. Source: statista.com

Average IT Salaries in Vietnam

1. Salary Ranges for Key IT Roles:

Data from the 2023-2024 IT Salary Report by ITViec, a leading IT job review platform in Vietnam, reveals the average monthly salary in USD for common positions as follows:

Year of Experience	< 1	1 – 2	3 – 4	5 – 8	> 8
Software Developer/Engineer
Front-End Developer	296.56	553.58	1107.16	1581.65	2174.77
Back-End Developer	395.41	632.66	1067.62	1621.19	2392.25
Full-Stack Developer	395.41	751.29	1107.16	1502.57	2174.77
Management & Consulting
Project Manager	1304.86	1700.28	1779.36	1917.75	3123.76
IT Consultant	N/A	751.29	1265.32	1482.80	N/A

2. Factors Influencing IT Salaries:

The main factors that affect average IT salaries in Vietnam are:

• Experience Level: Senior professionals are in higher income since they tend to have great and complex projects at their helm, which requires leadership.
• Location: Salaries in big cities tend to be higher due to higher cost-of-living expenses. Some major examples are Hanoi and Ho Chi Minh City.
• Technical Skills: Popular languages – including JavaScript, Python, and Java – all command good remunerations. Less common languages — Go and Ruby included — tend to pop to the top of the ranking.

Go programming language. Source: avenga.com

• In-Demand Skills: Knowledge of emergent information technology branches, like AI, blockchain, and cybersecurity, will increase one’s financial rewards.
• Language Skills: Outstanding proficiency in English accelerates international collaboration and, therefore further salary growth.

3. Comparison with Neighboring Countries:

The average IT salary in Vietnam is also generally lower than in Thailand, similar to Indonesia, and slightly higher compared to the Philippines. According to data from Glassdoor, the average IT salaries in USD in these four countries are as follows: 

• Vietnam: $593.47
• Thailand: $1,320.81
• Indonesia: $538.64
• Philippines: $394.54

Vietnam’s competitive IT salaries, combined with favorable exchange rates, give the country a strong cost advantage in software outsourcing. These factors have earned the recognition of Forbes as a “small but powerful software outsourcing powerhouse in Asia-Pacific.”

Pros of Outsourcing IT Development to Vietnam

1. Cost Efficiency:

Outsourcing to this country offers significant cost savings for international companies, thanks to the competitive average IT salary in Vietnam and low operational costs. This allows businesses to access high-quality services without bearing the high labor expenses found in more developed tech hubs in Asia.

2. Access to a Growing Pool of Skilled Talent:

Vietnam has approximately 530,000 software engineers and 57,000 IT professionals graduating from universities and other institutions each year. Moreover, the Vietnamese government has invested seriously in STEM education and created policies that guarantee that the workforce will be young and skilled.

Many young people attend programming classes. Source: baotintuc.vn

3. Flexibility and Adaptability:

The flexible Vietnamese IT workers work in time zones and follow international standards. EF English Proficiency Index 2023 showed that Vietnam sat in the world ranking at 58th position. Though the rating remains moderate, this, in addition to the country’s cultural adaptability, speaks volumes about effective communication and collaboration with foreign clients.

4. Quality of Work and Commitment to Learning:

Vietnamese developers have gained international recognition, highlighted by the global success of “Flappy Bird,” created by Dong Nguyen in 2013. This achievement showed the world what developers in Vietnam can achieve: an energetic and innovative IT community embracing state-of-the-art technologies, even though it is a developing nation.

“Flappy Bird” mobile game by Dong Nguyen. Source: gameblog.fr

Cons of Outsourcing IT Development to Vietnam

1. Language and Communication Barriers:

English proficiency may present a communication challenge when outsourcing to Vietnam, particularly among junior or entry-level IT staff. To address this, companies can assign team members with stronger English skills to client-facing roles.

2. Time Zone Differences:

Vietnam has a GMT+7 time zone, which is ahead by 11 hours in the U.S. and 7 hours in the U.K. A few of the options made are to adopt a project-based model to limit the needs of interaction or, in return, both agree to substantial overlap of working hours to lessen the impact of time zone differences.

Working with time zone overlap. Source:northbaybusinessjournal.com

3. Potential Gaps in Highly Specialized Skills:

While Vietnam indeed has a strong IT talent pool, there will be skill gaps related to more sophisticated areas like advanced AI, deep machine learning, and blockchain. These can be bridged through focused training or through hybrid outsourcing models that combine local talent with external specialized expertise.

4. Employee Retention and Turnover:

With the software outsourcing market booming in Vietnam, this translates to frequent job opportunities for IT professionals. Hence, companies need to offer attractive benefits and career growth pathways, similar to other successful firms in the outsourcing industry, to retain the best people.

Tips for Successfully Outsourcing to Vietnam

1. Choosing the Right Outsourcing Partner:

Once companies have considered all that Vietnam has to offer for their outsourcing needs, they should narrow down potential suppliers. Visiting review platforms such as Trustpilot.com and Sortlist.com allows them to carefully assess a supplier’s track record, experience, and technical expertise before making a final decision.

2. Setting Clear Project Goals and Expectations:

Clearly defining project goals, timelines, and deliverables upfront with suppliers allows them to align their efforts with the objectives. Setting KPIs helps focus on key results, while using project management tools enables transparent tracking of performance, accountability, and progress, ensuring prompt issue resolution.

Working with project management software. Source: adculture.ca

3. Building Long-Term Relationships:

To build lasting relationships, invest in team development and create a collaborative environment that encourages mutual trust and open communication. Regular communication, whether through a chat app or a project management tool, ensures alignment and keeps workflows flowing.

ERA’s Employer of Record (EOR) services can simplify IT outsourcing in Vietnam by managing legal responsibilities. This includes recruitment, payroll, taxes, and HR compliance, enabling foreign companies to hire skilled workers in Vietnam swiftly and over 100 other countries without establishing a local entity.

Get in touch with us today to discover how our EOR solution can ease global expansion!

Frequently Asked Questions

1. What is the average salary for software developers in Vietnam?

The average IT salary in Vietnam for a software developer is approximately VND 23 million per month, or around USD 909.99.

2. What are the main benefits of outsourcing IT development to Vietnam?

The cost of outsourcing in Vietnam is much lower compared with other Asian countries with developed tech industries, and the young, highly skilled IT workforce presents an attractive market.

3. How can companies handle communication challenges when outsourcing to Vietnam?

Companies can improve collaboration by providing clear documentation, using tools like project management platforms or video conferencing, and setting overlapping work hours when possible.