Vietnam's IT sector has witnessed remarkable growth, fueled by a rising middle class, significant infrastructure investment, and a strong emphasis on education. The country's young population, expanding middle class, and increasing internet penetration create a favorable environment for IT businesses. Additionally, Vietnam's strategic location in Southeast Asia provides access to a vast regional market, while its favorable business climate, government support, and abundant tech talent pool further enhance its attractiveness. https://aniday.com

1. Vietnam’s
Tech Hub
Building
Guide
Vietnam's growing tech industry
and talented workforce makes it an
ideal location. Our report provides a
guide to help your business take
advantage of the benefits Vietnam
has to offer.
www.recruitery.co

2. Table of Content
01 Introduction
Insights 3
Vietnam’s Snapshot 4
02 Vietnam’s Tech Industry
Vietnam’s IT Sector Overview 5
What to expect from Vietnam’s Top 3 IT
Industries in years to come?
6
Why Foreign Companies should Build Tech Hub
in Vietnam?
7
03 Tech Market
Tech Market in Vietnam 11
Median Salary Report 12
Guide on Hiring in Vietnam 13
04 Build Tech Team
Build a Tech Team with Recruitery 16
www.recruitery.co

3. 01 Introduction
Welcome to the guide report on
expanding your IT business to the
vibrant market of Vietnam. In today's
interconnected world, the IT industry
plays a pivotal role in driving economic
growth and innovation. Vietnam's IT
sector has witnessed remarkable
growth over the years, fuelled by the
growing middle class and increasing
investment in infrastructure and
education.
The country's young population,
expanding middle class, and
increasing internet penetration create
an ideal environment for IT businesses
to thrive. Moreover, Vietnam's strategic
geographical location, favorable
business climate, government support
and pool of tech talent further
contribute to its attractiveness as a
market for IT expansion.
As you delve into this report, you will
develop a better grasp of the current
state of the IT industry, the future
expectations for Vietnam's top three
IT sectors, the median IT salary
report, and the compelling reasons
why foreign tech companies should
consider expanding or building a
tech hub in Vietnam. Equipped with
this knowledge, you will be
empowered to devise effective
strategies aligned with your business
objectives and make the most of
Vietnam's vast potential.
We sincerely hope that this guide
report serves as a valuable resource
in your journey to expand your IT
business to the Vietnamese market.
Insights on
Building a Tech
Hub in Vietnam
Vietnam’s Tech Hub Building Guide | 3

4. 99,897,228
Total 2023 Population
50,74 Million
Working-Age Population
32.5
2023 Median Age
4,475.51 USD
GDP per Capita
1.5 Million
IT Workforce (est 2023)
10+
International Airports
Vietnam's
Snapshot
— 01 Introduction
Vietnam’s Tech Hub Building Guide | 4

5. Vietnam's IT industry has significantly grown and now holds a critical
position in the country's economy. It ranks first in the software service
industry among the fastest-growing ASEAN countries, making it a leading
player in the global IT landscape.
The government aims to make Vietnam a top digital destination in
Southeast Asia by 2030, with supportive policies that foster opportunities
for technology businesses to expand and scale. This growth creates
abundant job prospects within the IT industry and emphasizes its
importance and potential for further advancements towards becoming a
leading digital economy.
In addition, many large technology companies have been investing and
expanding in Vietnam.
02 Vietnam’s Tech
Industry
Vietnam’s IT Sector Overview
Vietnam’s Tech Hub Building Guide | 5

6. What to expect from Vietnam’s Top
3 IT Industries in years to come?
1. Artificial Intelligence (AI)
Vietnam's AI industry has been adopted in various sectors such as
e-commerce, human resources, education, agriculture, healthcare,
and more. To further promote AI development, the government
recently passed a resolution aiming to increase the number of
enterprises in the advanced technology industry to 50% by 2025,
thereby encouraging foreign direct investment (FDI) that can aid in the
advancement of AI.
2. E-commerce
Vietnam's e-commerce market is projected to rank third in the region
by 2025. Ho Chi Minh City and Hanoi are key e-commerce hubs,
accounting for 70% of total sales in the country. The availability of
reliable internet connectivity in rural areas creates promising
expansion prospects. Vietnam's cost-effective and efficient
development process has attracted prominent e-commerce
companies in Asia to establish dedicated teams in the country.
3. Fintech
Vietnam's FinTech sector is projected to reach $18 billion by 2024,
driven by a young population, a growing middle class, and increasing
internet penetration. The country offers favorable conditions for fintech
industry growth. Particularly, significant expansion is observed in digital
payments, peer-to-peer lending, and blockchain technology with
cryptocurrencies.
— 02 Vietnam’s Tech Industry
Vietnam’s Tech Hub Building Guide | 6

7. 1. Government Support
2. Young Talent Pool
3. 100% Foreign Ownership
4. Low Operational Cost
Why foreign
tech companies
should build Tech
Hub in Vietnam?
— 02 Vietnam’s Tech Industry
Vietnam’s Tech Hub Building Guide | 7

8. Government
Support
The Vietnamese government provides funding, tax incentives,
technical training, and business mentoring to support the tech
sector's development. This assistance aids foreign tech companies in
establishing a strong presence and growing their operations in
Vietnam.
1.
1.1 National Program for Innovation
Vietnam's National Program for Innovation aims to boost startup
formation and recover from the Covid-19 investment decline in
2022. It fosters a favorable environment for tech startups by
offering funding, training, and support. The program targets the
creation of 2,000 innovative startups and 600,000 jobs by 2025.
1.2 Lucrative Tax Incentives
Foreign investors and companies are attracted to Vietnam
due to the enticing tax incentives provided by the government.
The Vietnamese government prioritizes investment in the IT
sector and offers appealing incentives. Technology
companies can benefit from corporate income tax (CIT)
incentives, such as 10% CIT for 15 years, four years of CIT
exemption, and a 50% tax reduction for the subsequent 9
years.
— 02 Vietnam’s Tech Industry
Vietnam’s Tech Hub Building Guide | 8

9. Young Talent
Pool
2.
100% Foreign
Ownership
3.
Vietnam allows foreign companies
100% ownership when setting up
operations, enabling them to
maintain full control and benefit
from lower business costs in
Vietnam.
Vietnam benefits from its youthful population, with
a median age of 30.4 years and 50% of the total
population under 30. The country's improving
education system contributes to a large pool of
highly skilled talent.
Vietnam is renowned for its growing tech talent,
with over 400,000 IT engineers currently employed
and an additional 50,000 IT graduates each year.
Vietnam boasts a tech-savvy population and a
growing middle class, making it an ideal market for
new businesses.
— 02 Vietnam’s Tech Industry
Vietnam’s Tech Hub Building Guide | 9

10. Among Myanmar, India, Philippines, Malaysia, Thailand,
Indonesia, and Singapore, Vietnam has the lowest
operating costs, with a minimum monthly expense of
$79,280.
Low Operational
Cost
152,791
142,344
130,672
128,216
124,277
79,280
65,313
366,561
Singapore
Indonesia
Thailand
Malaysia
Philippines
India
Vietnam
Cambodia
Minimum Monthly Operating Costs (USD)
— 02 Vietnam’s Tech Industry
4.
Vietnam’s Tech Hub Building Guide | 10

11. Vietnam has been building infrastructure to develop the information technology
sector. Overseas technology companies setting up an office in Vietnam can
receive additional incentives such as land rent exemption for IT businesses
inside tech parks built by the government, further helping to reduce their
expenses.
Hoa Lac Hi-Tech Park
Saigon Hi-Tech Park
Danang Hi-Tech Park
Ho Chi Minh City
Software Park
Ninh Thuan Hi-Tech Park
Hanoi Software Park
Can Tho Information
Technology Center
Da Lat Hi-Tech Park
Bac Ninh Hi-Tech Park
Quang Trung Software
City
The high-tech parks that have been established are:
03 Tech
Market
IT Infrastructure
Vietnam’s Tech Hub Building Guide | 11

12. IT Median
Salary Report
IT jobs are in high demand as technology products and services become more
integrated into our daily lives.
One of the most pressing concerns for business leaders is talent shortages,
which could potentially impact companies' competitive advantages in the
long-run.
— 03 Tech Market
Tech Stack
Under
1 year
From 1 to less
than 3 years
3 to less
than 5 years
5 to 8
years
8+
years
JavaScript 500 700 1200 1500 2800
C# 690 780 1100 1300 1650
Java 500 780 1300 1700 2100
PHP 550 820 1250 1300 1700
Python 780 1000 1500 2100 3000
TypeScript 970 1000 1400 1700 2500
SQL 650 820 1680 1850 2000
C++ 600 650 1000 1600 2000
Kotlin 600 780 1730 2160 2800
Swift 550 990 1800 2100 2700
Go 600 1100 1600 2600 3200
HTML/CSS 450 650 780 1100 1200
Bash/Shell 550 820 1400 2500 3000
Ruby 650 860 1500 2800 3250
Dart 500 600 850 1800 2250
PowerShell 550 650 900 1100 1500
Objective-C 860 1250 1550 1950 2400
Vietnam’s Tech Hub Building Guide | 12
Unit: USD

13. Guide on Hiring in
Vietnam
The 2021 Labor Code of the Republic of Vietnam defines
provisions for employee protections and workers’ rights
applicable to Vietnam’s workforce of 56.5 million.
Employees in Vietnam enjoy protections against
discrimination based on age, religion, sexual
orientation, gender expression, and race.
— 03 Tech Market
Vietnam’s Tech Hub Building Guide | 13

14. The Vietnamese government mandates
a two-tier minimum wage for skilled and unskilled
workers across four distinct regions within the
country.
Region I: VND 4,420,000 ($192.80)
Region II: VND 3,920,000 ($170.99)
Region III: VND 3,430,000 ($149.61)
Region IV: VND 3,070,000 ($133.91)
Minimum
Wage
Skilled workers are entitled to a minimum wage that’s at least 7% higher than the
base rate defined for unskilled workers.
1.
— 03 Tech Market
Vietnam’s Tech Hub Building Guide | 14

15. Employer
Cost
2.
The employer's cost is 23.5% of the
employee's salary:
Social Insurance - 17.5%
Health Insurance - 03%
Accident Insurance - 0.5%
Control Union Fee - 02%
Unemployment Insurance - 01%
Overtime
Pay and
Maximum
Hours
3.
— 03 Tech Market
Vietnam’s Tech Hub Building Guide | 15
Standard working hours:
8 hours/day,
40 hours/week
Standard workweek:
Monday - Friday.
Overtime payment is mandatory.
Employees can work no more than 12 hours a day,
including normal and overtime (OT) hours.
For OT hours, employees are paid:
● 150% of the hourly rate on weekdays
● 200% of the hourly rate on weekly days off
● 300% of the hourly rate on public holidays

16. Build a Tech Team with
Recruitery
Our services
Global Recruitment
Global Payroll
Trusted by
Vietnam’s Tech Hub Building Guide | 16
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Hello@Recruitery.co
Free consultation
We provides a long-term solution for successfully delivering your product
roadmap without outsourcing your software development. In just a few weeks,
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Recruitery is an all-in-one hiring solution that streamlines the process of finding,
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