By TPS People

Vietnam’s Software Development Industry: Trends and Insights


Vietnam’s software development industry has been on a remarkable growth trajectory over the past few years, making it an increasingly attractive destination for businesses looking to outsource software development projects. In this article, we will delve into the latest trends and insights into Vietnam’s thriving software development landscape.

Trends & Insights of Vietnam's Software Development Industry

Impressive Growth Statistics

Vietnam’s software development industry has witnessed impressive growth in recent years. According to Vietnam’s Ministry of Information and Communications, the country’s software and IT services industry reached approximately $110 billion in revenue in 2022, a significant increase from previous years. This growth can be attributed to various factors, including a skilled workforce, cost-effectiveness, and a favorable business environment.

Thriving Start-up Ecosystem

Vietnam has emerged as a hotbed for tech startups, particularly in the software development sector. The country boasts a vibrant startup ecosystem, with hubs like Ho Chi Minh City and Hanoi hosting numerous incubators and accelerators. These startups are driving innovation and contributing to the overall growth of the industry.

Technical Expertise

Vietnamese software developers are known for their technical prowess. They excel in a wide range of programming languages, including Java, Python, C++, and JavaScript. Moreover, many Vietnamese developers have gained international recognition for their contributions to open-source projects and their ability to tackle complex technical challenges.

Agile Development Practices

Vietnamese software development companies are increasingly adopting agile methodologies such as Scrum and Kanban. These practices enable teams to work collaboratively, respond to changing requirements, and deliver high-quality software efficiently. This adaptability has made Vietnam an attractive destination for businesses looking for flexible development approaches.

Emerging Technologies

According to the research of FPT – the most famous software development company in Vietnam, the industry is not only keeping up with global trends but also actively embracing emerging technologies. Some notable areas of focus include:

  • Artificial Intelligence (AI) and Machine Learning (ML): Vietnamese developers are working on AI and ML projects in various domains, including healthcare, finance, and e-commerce.
  • Blockchain: The adoption of blockchain technology is on the rise, with companies exploring its potential in supply chain management, finance, and digital identity.
  • Internet of Things (IoT): Vietnam is positioning itself as an IoT hub, with developers creating solutions for smart cities, agriculture, and manufacturing.
  • Cybersecurity: Given the increasing importance of data security, Vietnamese software developers are also focusing on cybersecurity solutions and practices.
  • Cloud Computing: Gained significant traction in Vietnam’s software development sector due to its ability to provide scalable, flexible, and cost-effective infrastructure and services. 

Outsourcing Destination of Choice

Vietnam’s software development industry has become a preferred outsourcing destination for businesses worldwide. Cost-effectiveness remains a significant factor, with labor costs in Vietnam being competitive compared to other outsourcing destinations. Moreover, the combination of technical expertise, cultural compatibility, and a robust IT infrastructure makes Vietnam an ideal choice for offshore software development.


Vietnam’s software development industry continues to impress with its remarkable growth, technical expertise, and innovative spirit. With a focus on emerging technologies and a commitment to quality, Vietnam is poised to maintain its status as a leading destination for software development outsourcing. As businesses seek to leverage the advantages of this thriving industry, Vietnam stands out as a promising partner in the ever-evolving world of software development.