A combination of factors have seen Vietnam become a volcanic hotspot for tech talent in recent years. Not just in Asia but globally. With business and government there now aligned to develop this industry sector even further, what can employers do to take advantage of this new tech talent goldrush?
Right now. Vietnam is hot. But we’re not talking about the weather. We’re talking about that nation’s technology talent – in-demand, affordable, hard-working, international-in-outlook, well-educated and more.
With over 97 million people, Vietnam is the eighth most populous country in Asia, and the fifth most attractive country in Asia for regional business services. With supportive government policies that have boosted the IT sector, Vietnam’s strong GDP growth, growing disposable income, and young population (median age 32.5 years) have all helped the country develop a thriving technology scene.
With the current worldwide tech talent shortage impacting businesses everywhere and dampening growth prospects in this new digital-revolutionary age, more and more companies are turning towards Vietnam as a solution to their staffing and growth problems.
The reasons why?
Vietnamese IT talent is amongst the most affordable in Asia
According to The Southeast Asia Tech Talent Compensation Report 2021, Vietnam’s tech talent is considerably more affordable compared to other countries in Asia. For example, a full-stack developer from Singapore charges around four times more than an FSD in Vietnam.
In Vietnam, a mid-senior developer or software engineer with 5 years of experience would draw a monthly gross salary of approximately US$2574. This is almost half the salary of an equivalent employee in Singapore.
In addition, the cost of office rental in Vietnam is also much more affordable compared to Singapore. In the post-pandemic landscape, any saving means more chances for your start-up to grow to its fullest potential so it’s no surprise that Vietnam is now considered one of the best offshoring destinations and tech hubs in the ASEAN region.
A tech-talented nation
According to the 2020 Vietnam IT Market Report, the country possesses over 400,000 IT engineers, with universities turning out around 50,000 IT graduates annually.
At present, the country ranks #1 out of 154 nations in the Global Cryptocurrency Adoption Index (well above the USA, China, and other European countries), reflecting a high degree of tech-savviness. In addition, a multitude of local universities have also now started offering courses that specialize in blockchain development and other cutting edge aspects of IT.
The AI sector in Vietnam has also developed substantially. The Vietnamese government recently announced a national policy for AI research, development, and application that will last until 2030. Its goal is to transform Vietnam into a global innovation and AI hub..
A well-educated nation
The Vietnamese people place great emphasis on education and the nation now has a thriving, well respected and world class education system. A number of higher education institutions have recently established new majors and degrees in fields such as data science and artificial intelligence (Hanoi University of Science & Technology), data science (Ho Chi Minh City International University), in addition to creating a range of vocational programs focusing on learning advanced digital skills.
High education levels means that the tech workforce there is big on English proficiency – the international language of business – and can assimilate well into any foreign environment.
In Vietnam, English is taught as the main foreign language from Grade 6. The 2022 EF English Proficiency Index report ranked Vietnam in 60th place in the world’s English proficiency Index.
All up, Vietnamese tech talent is street-smart, flexible and adaptable.
An international outlook
As a whole, Vietnamese tech talents really do see the whole world as their oyster. Graduates there expect to work internationally in some form. For example, a report from 2020 showed that 43.8% of Vietnam’s engineers worked for companies that outsourced their tech development. Furthermore, these tech talents are increasingly preferring to work for foreign companies as opposed to local ones, due to higher salary packages and less hierarchical structures.
A hard working people
Just like the ancient Trojans, Vietnamese people have a well-earned reputation for hard work. In addition to putting in the effort, trustworthiness is also an especially important feature in Vietnam’s business culture, so you can count on them to deliver on their promises. A 2019 study assessing the “Big Five” personality traits in Southeast Asia found that Vietnamese workers are highly conscientious, dutiful, trustworthy, and responsible.
For businesses all over the world currently grappling with staff shortages, Vietnam represents the golden fleece of affordable talent, especially in IT. Not only is there a large, young and well-educated workforce to tap into, but global tech firms like Google, Microsoft, and Huawei have also invested heavily in the region’s human capital in recent years.
If you’re a business owner or manager, Vietnam is certainly worth a closer look.
Like to know more about IT outsourcing opportunities in Vietnam? Or are you on the look-out for top tech talent? CXC Global are workforce management solutions specialists with a presence in over 50 countries around the world, including offices in Vietnam. Why not contact us today to discuss any tech talent issues you may have? It could be the best move you make this year.