Average Software Engineer Salary in Vietnam: Remote vs. Office Teams

Key Takeaways:

• The average Software Engineer salary in Vietnam is around US$16,157/year. Scroll down for ERA’s detailed breakdown by level, city, and comparisons with other Southeast Asian countries.
• Learn about the cost-saving benefits of remote IT teams, the advantages of on-site collaboration, and tips for choosing and managing the best model for foreign firms in Vietnam.

Average Software Engineer Salaries in Vietnam

What is the average Software Engineer salary in Vietnam? Source: ekotek.vn

1. Salary Ranges by Experience Level:

Here is the range of the average Software Engineer salary in Vietnam based on experience, according to data from Quora:

• Junior Software Engineer: US$500–800/month
• Mid-Level Software Engineer: US$1,200–1,800/month
• Senior Software Engineer: US$1,300–1,500/month

Data from Levels.fyi shows the following average annual salaries:

• Entry-Level Software Engineer: US$7,854/year
• Senior Software Engineer: US$33,400/year
• Overall average across all levels: US$16,157/year

2. Salary Comparison by City:

Here is a breakdown of the average Software Engineer salary in Vietnam across major cities, including Hanoi capital, Ho Chi Minh City, and Da Nang, based on data from various reliable sources.

• Hanoi: US$890.21/month
• Ho Chi Minh City: US$1,080.12/month
• Da Nang: US$906.03/month

Ho Chi Minh City is a major tech hub that attracts many large companies and has a higher cost of living, so it often offers a higher average Software Engineer salary in Vietnam to attract skilled IT professionals. In contrast, Hanoi and Da Nang, with smaller technology markets, tend to offer slightly lower wages.

3. Specialized Skills and Impact on Salary:

While the average Software Engineer salary in Vietnam is competitive, fields like cloud services, cybersecurity, and big data and analytics tend to command even higher pay. In 2024, AI engineers will be ranked among the best-paid professionals, with salaries reaching between US$1,110 and 2,060 monthly.

Salaries for AI, data, and analytics jobs in Vietnam, 2024. Source: vnexpress.net

Moreover, fintech and gaming are currently two growing industries in Vietnam, while monthly entry-level game programming wages range from US$400-800 per month, and in the case of fintech, they reached US$400–2,600 per month in 2021.

4. Comparison with Neighboring Countries:

Compared to other Southeast Asian nations, the average Software Engineer salary in Vietnam tends to be on the low side when compared to Thailand and the Philippines. Still, it is rather comparable when compared with Indonesia. Data from Levels.fyi shows that:

• Vietnam: US$16,157/year
• Thailand: US$29,667/year
• Philippines: US$17,803/year
• Indonesia: US$13,197/year

Vietnam’s cost-effective IT labor makes it an attractive hub for outsourcing, ideal for multinational corporations managing large data sets, seeking data cleaning solutions in financial services and gaming, or exploring emerging trends like AI, machine learning, and blockchain in an affordable manner.

Remote vs. Centralized IT Teams in Vietnam

1. Pros of Centralizing IT Resources in an Office:

• Direct Team Collaboration and Communication: Most of the time, face-to-face communications bring quicker solutions and easier idea flows. For example, if there is any problem in installing software, one can immediately ask other team members for assistance.
• Easier Management and Oversight: When the IT team is set up under one roof, managers find it easier to keep track of daily workloads, attendance, productivity, and performance. Also, they can easily support their employees to help them resolve any issue that arises.
• Enhanced Team Culture and Morale: Many innovative ideas flow over a cup of coffee or during a team lunch. Such activities help build familiarity with the personalities of team members and thus help in promoting camaraderie, thereby encouraging the work culture.

On-site work can strengthen team spirit. Source: pace.edu.vn

2. Cons of Centralizing IT Resources:

• Higher Overhead Costs: Opening an office, especially in major areas such as Ho Chi Minh City, puts pressure on the budget due to additional costs for electricity, internet, space rentals, etc.
• Limited Talent Pool: For example, a company in Hanoi may miss the opportunity to recruit a great developer in Da Nang or elsewhere just because the candidate is located in a different city than the office.
• Potential for Commute Fatigue: Chances are that the employees will feel fatigued due to long commutes and rush-hour traffic congestion. Productivity decreases while turnover rates increase as employees seek jobs closer to their homes.

3. Pros of Operating Remotely with IT Teams in Vietnam:

• Cost Savings: The companies will save a lot on the cost of renting space, paying utilities, and other office-related expenses and invest the same in enhancing their technology infrastructure.
• Access to a Wider Talent Pool: A company can hire experts in software engineering in both urban and rural areas without any relocation problems. This often expands the diversity and the types of skill sets available.
• Flexibility for Employees: Remote work allows the employee to avoid the morning rush-hour traffic congestion and permits a work-life balance. This enhances their satisfaction and retention quotient.

Remote work provides engineers with a flexible environment that encourages creativity. Source: nomadhub.medium.com

4. Cons of Operating Remotely:

• Communication and Collaboration Challenges: Remote working can cause delays in quick responses, especially when collaborating across different time zones. The absence of face-to-face contact may lead to misunderstanding the tone and urgency of messages.
• Difficulties in Performance Management: Without direct supervision, it can be difficult for managers to assess whether employees are focused on the task at hand or experiencing obstacles that require quick support.
• Risks to Team Culture and Engagement: The lack of informal conversations or spontaneous brainstorming sessions can lead to weaker relationships between team members, ultimately affecting engagement and loyalty.

Managing and Motivating Remote Software Engineers in Vietnam 

1. Setting Clear Expectations and KPIs:

Since remote software development teams work in different locations and environments, it’s essential to clearly communicate goals, expectations, and deadlines from the outset.

The workload, productivity, and performance of a remote team to be established in Vietnam could be measured more simply by KPIs. In the case of long-term projects, setting milestones is preferable because it allows managers to follow up on the developments of each and find the bottlenecks in time and iron them out.

Project management tools like Trello, Asana, or Jira will help managers visualize the task allocations and hence monitor multiple projects with ease.

Remotely working with project management tools. Source: agile.org.uk

2. Regular Communication and Check-ins:

It is relevant that daily or weekly meetings take place, where the manager will be aware of which projects the remote team is working on. Instead of not being able to have face-to-face interactions, video meetings will be favored. The ideal day is in the morning on a Monday, wherein a manager goes through the previous week’s work and proceeds with the issuance of other tasks for that coming week.

In addition, it demands a stable platform that performs well, irrespective of the number of participants. For that, Google Meet and Zoom are superb options offering recording, chat, and screen sharing amongst other features.

Video call check-ins. Source: evotek.vn

3. Providing Career Development Opportunities:

Providing opportunities like skill-building workshops, structured growth programs, etc, for remote professional development keeps engineers up-to-date with industry trends and technologies, boosting their skills and confidence.

Virtual coding sessions or one-on-one mentorships with senior developers can motivate engineers by reinforcing their career progression, even while working remotely.

4. Encouraging Team Collaboration and Bonding:

Virtual team-building activities and informal interactions help strengthen camaraderie and team culture. For instance, informal video calls, like virtual coffee breaks on Skype, allow team members to connect over non-work topics, building stronger relationships.

Online games, such as trivia quizzes or virtual escape rooms, add a fun, collaborative element. Occasional in-person gatherings or team retreats—such as meetings between Vietnamese leaders and members or visits from international managers—also bring great value in enhancing team cohesion.

Hosting virtual coffee breaks. Source: wanderingbearcoffee.com

5. Ensuring Access to Technology and Resources:

Equipping the engineers with necessary hardware, such as high-performance laptops, and software tools like coding platforms, comprehensive design software, and collaboration tools such as Slack and GitHub will be in a position to work efficiently from any part of the world.

Besides that, having a full IT support team on the ground will help resolve any technical issues quicker than anticipated. The result is less or no downtime, thus keeping the remote software engineers happy and concentrating on their work.

Deciding Between Remote and Centralized IT Teams

1. Assessing Company Needs and Resources:

When deciding between a remote and centralized IT team, companies should first assess their goals, resources, and flexibility needs. For instance, a business aiming to scale quickly on a limited budget may find a remote team more cost-effective. Conversely, companies that prioritize close collaboration and physical presence might benefit from a centralized team.

With ERA’s Employer of Record (EOR) service, companies can easily onboard employees in Vietnam without having to go through the cumbersome and expensive process of setting up a local entity. As the legal employer, we handle recruitment, payroll, taxes, and benefits and ensure full adherence to Vietnamese labor laws, allowing companies to focus on growth and productivity.

2. Weighing Productivity and Collaboration:

The company should choose between remote or in-office work based on the nature of the tasks. Source: ripplematch.com

The type of work or project is another key factor when selecting a team structure. Tasks that demand constant collaboration, like software development sprints or large-scale integration projects, often thrive with on-site communication.

In contrast, independent tasks—such as individual coding assignments or routine maintenance—can typically be managed effectively in a remote setup without impacting productivity.

3. Considering Employee Preferences:

Employee preferences greatly influence job satisfaction and retention. Many younger IT professionals, for instance, highly value the flexibility of remote work, which can enhance their engagement and loyalty.

During the interview process, companies should communicate their remote work policies transparently, ensuring candidates are comfortable with the setup and helping to reduce potential turnover.

Frequently Asked Questions

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

The latest data from Levels.fyi shows that the average software engineer salary in Vietnam is around US$16,157/year.

2. Is it better to hire remote or in-office IT teams in Vietnam?

For most companies, hiring a remote IT team in Vietnam is advantageous due to the skilled talent pool, a growing remote work culture, and cost savings. However, project needs, collaboration levels, and management style should also factor into this decision.

3. How can I effectively manage a remote IT team in Vietnam?

Focus on clear communication, use project management software, cultivate a strong team culture, respect time zone differences, implement a thorough onboarding process, and provide regular feedback with open communication channels.