The Vietnamese software outsourcing market is projected to reach approximately $698 million by 2024. Some analyses predict that if the current growth rate is maintained, the value of this industry in Vietnam could climb to $880 million by 2028. What factors have propelled Vietnam’s rapid ascent in this global sector, and which leading software development companies are driving this success?
The global shift and Vietnam’s place in the $600 billion industry
The global software outsourcing industry, valued between $500 billion and $600 billion (according to Statista’s report), is the foundation of the global digital economy, serving critical sectors such as finance, e-commerce, AI, and digital healthcare.
While major hubs like India, China, and Ukraine have historically dominated the market, the landscape is diversifying. Emerging nations such as the Philippines, Indonesia, and Bangladesh are gaining traction. Yet, Vietnam is standing out as Asia’s new software outsourcing hub, increasingly competing with India in selected mid-to-high-end segments.
Core strengths driving Vietnam’s breakthrough
Vietnam’s rapid growth is underpinned by several powerful, interconnected advantages:
- A young and eager talent pool: Vietnam boasts approximately 1.2 million ICT workers, with a steady influx of 50,000-70,000 IT engineers graduating annually. This young, expanding workforce is quick to adapt and highly motivated.
- Competitive cost, high value: Global clients are finding a rare combination of competitive costs and rising quality. Programmer salaries in Vietnam are 30-50% lower than in India and 60-70% lower than in the US and Europe. Simultaneously, the quality of code, systematic thinking, security, and project management is approaching the high standards of top regional peers.
Global validation: Leading firms meet high standards
Vietnam’s confirmed status as a strategic outsourcing partner to major markets, including Japan, the United States, South Korea, Europe, and Australia, validates the competence and quality of its leading personnel.
Top-tier companies, such as FPT Software, Viettel Solutions, TMA Solutions, CMC, GlobalNash, PowerGate Software, Newwave Solutions,… demonstrate the capacity to meet even the most stringent global requirements.
“To capture this golden opportunity, companies must move beyond just competing on cost. The future of Vietnam’s tech industry lies in deeply integrating into high-value global chains like AI, Machine Learning, Digital Banking, and Smart Health,” says Nevill Nguyen, CEO & Managing Director at PowerGate Software. “At PowerGate Software, we are dedicated to engineering scalable, complex solutions using advanced stacks like Cloud-native, DevOps, and Data Engineering. Our focus is ensuring our global clients achieve exponential value, confirming Vietnam’s role as a technology partner, not just a sourcing satellite.”
A long-term global trend
The global demand for software outsourcing continues to surge, driven by massive needs in digital transformation, AI adoption, Big Data, and Cloud Computing. This is further fueled by the severe IT engineer shortages in major markets like the US, EU, and Japan, forcing them to ramp up outsourcing and diversify partners in Asia.
Furthermore, global strategic competition is driving tech corporations to restructure supply chains under the “China +1,” “Nearshoring,” and “Friend-shoring” models. Vietnam is one of the clearest beneficiaries of this crucial and long-term geopolitical realignment.
Conclusion: Seizing the golden opportunity
While the opportunities are vast, experts caution that avoiding the “outsourcing trap” requires continuous investment in high-quality talent, stricter security standards, and improved digital infrastructure. By taking these steps, Vietnamese companies can proactively deepen their participation in the globally reshaping technology supply chain.
