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IT Outsourcing in Vietnam: Statistics, Growth Forecasts, and Competitive Advantages
- Van Pham LLC
- Oct 19
- 3 min read
Software outsourcing has become one of Vietnam’s fastest-growing export sectors, contributing hundreds of millions of USD to the economy each year. As the world embraces digital transformation, Vietnam’s strong tech talent, cost advantages, and favorable business environment have positioned it as one of the most promising IT outsourcing destinations in Asia.
Global Outlook: A $1 Trillion Market by 2030
According to Research and Markets, the global outsourcing market is projected to reach USD 769.7 billion in 2025, growing at a compound annual growth rate (CAGR) of 5.54%. At this pace, the industry could surpass USD 900 billion by 2027 and cross the USD 1 trillion mark by 2030.
Outsourcing has become integral to the operations of global enterprises seeking efficiency, flexibility, and access to skilled digital labor. While sectors like semiconductors also promise trillion-dollar potential, outsourcing offers a more accessible and scalable entry point — one that aligns perfectly with Vietnam’s strengths.
Vietnam’s IT Outsourcing Fetches Nearly USD 700 Million
According to Statista, Vietnam’s outsourcing market is expected to reach USD 698 million in 2025, with an annual growth rate of 16.38%. By 2028, the market could generate nearly USD 880 million.
This rapid growth has been fueled by Vietnam’s thriving tech ecosystem, open-door investment policies, and a steady pipeline of skilled IT professionals. Over the past few years, Vietnam has consistently ranked among the Top 10 global outsourcing destinations, alongside established players like India and China.
Leading Players Driving Global Expansion
Vietnam’s technology giants are spearheading this transformation.
FPT Corporation, one of the country’s leading IT firms, employs over 80,000 staff across 30 countries. It recently signed an MoU with Toshiba Information Systems to provide semiconductor engineers, helping Japan address its workforce shortage.
CMC Global, with 70% of its workforce serving international markets, is expanding its global delivery capabilities to meet rising demand.
These companies represent a growing wave of Vietnamese tech firms aiming to “go global” — not just by exporting software, but by exporting world-class human talent.
Why Vietnam? Competitive Advantages in a Global Market
1. Skilled and Affordable Workforce:
Vietnam’s greatest advantage lies in its high-quality, low-cost workforce. According to the Ministry of Information and Communications, the average salary of a Vietnamese IT engineer is only one-tenth of the global average, while the quality of output remains highly competitive.
2. Strong Government Support and Stable Environment:
Vietnam’s stable political landscape and government incentives, including tax breaks and 100% foreign ownership for software outsourcing firms, have made it a business-friendly environment for global investors.
3. Deep Talent Pool and Education Alignment:
The country now boasts over 500,000 software developers and one million ICT professionals, many trained in AI, blockchain, and emerging technologies. University curricula and corporate training initiatives are increasingly aligned with international standards.
4. Strategic Location and Connectivity:
Situated in the strategic location of the Asia-Pacific, Vietnam offers convenient access to major markets like Japan, South Korea, Singapore, and China — making it an ideal “nearshore” outsourcing destination.
5. Rising English Proficiency and Soft Skills:
In recent years, Vietnam has made remarkable improvements in English proficiency, communication, and project management — addressing challenges that once limited its global competitiveness.
Industry Landscape: From Giants to Agile Innovators
Vietnam’s IT ecosystem includes over 60,000 ICT enterprises:
Large-scale champions such as FPT and CMC offering end-to-end solutions.
Mid-sized firms like NashTech and KMS Technology focusing on specific international markets.
Startups and small enterprises serving domestic and niche global clients.
This diverse ecosystem provides flexibility for global partners — from enterprise-scale outsourcing to specialized software development teams.
Challenges and Outlook
Despite its rapid ascent, Vietnam faces intensifying competition from regional leaders such as India, China, particularly in scale and brand recognition. Sustaining growth will require continuous upskilling, innovation, and deeper integration into global tech value chains.
Nevertheless, experts remain confident when developed markets such as Japan, the US, and Europe are experiencing a significant shortage of resources and need to save costs. Meanwhile, Vietnam has an abundant, adaptable tech workforce. Technology is constantly changing, and our engineers are quick to learn and respond.
Conclusion
As the global outsourcing industry races toward the USD 1 trillion milestone, Vietnam stands out as a dynamic, dependable, and cost-effective partner. With its combination of government support, skilled workforce, and strategic location, the country is well on its way to becoming a major player in the global IT services landscape.
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