Build a Tech Team in Vietnam: A Comprehensive Guide 2025

If you’re thinking about scaling your development capacity, one option keeps popping up: build a tech team in Vietnam. Over the last few years, Vietnam has gone from an emerging outsourcing market to a trusted destination for startups and enterprises worldwide. Why? Because it offers the sweet spot — solid engineering talent, fair costs, and a stable environment to grow long-term teams.

This guide walks you through why Vietnam makes sense, how to set up a team here, and what to look out for so your investment pays off.

Vietnam’s IT Outsourcing Services Market: Key Insights

Vietnam’s position in the global IT outsourcing map has shifted dramatically in the last few years. Where once it was merely one of several low-cost options, it’s now becoming one of the most reliable, innovative, and policy-friendly destinations for building tech teams. Several metrics and government moves back this up.

Growth Snapshot: Exports & Global Rankings

Vietnam’s export growth has exploded: in 2024, the country recorded a total export turnover of US$405.53 billion, up 14.3% over 2023. While goods dominate that number, the tech and digital sectors are getting increasing attention.

Vietnam’s ICT market is expected to grow from US$9.12 billion in 2025 to US$14.68 billion by 2030, at a CAGR of ~9.9%. Also, according to the WTO Center, foreign-market IT service exports are growing fast:  big vendors such as FPT have already crossed US$1 billion in export IT service revenue in 2023, aiming for US$5 billion by 2030.

Sectors Served: What Industries Are Leading

Vietnam’s IT & outsourcing services no longer focus only on basic app development. Today’s demand stretches across sectors like fintech (e.g. payment platforms, blockchain integration), healthtech (remote monitoring, telemedicine), logistics (real-time tracking, cold chains), and enterprise SaaS (multi-tenant platforms, workflow automation). Skills in AI/ML, data analytics, RPA (robotic process automation), cloud infrastructure are part of what clients expect. FPT Software, for example, reports that about 50% of its foreign-IT services revenue now comes from digital transformation domains — cloud, AI/data analytics, RPA, low-code.

Talent Pool & Location Advantage

Vietnam churns out a large number of tech graduates annually. While precise numbers vary, the labor pool is strong in big tech hubs: Hanoi, Ho Chi Minh City, and Da Nang. These cities not only host universities producing thousands of IT grads each year, but also attract tech firms, incubators, and investment in infrastructure (offices, data centers).

Another data point: the number of software & service-oriented ICT companies has grown to over 12,500 software companies among Vietnam’s ~27,600 ICT firms. That density means access to engineers across junior to senior levels.

Government Support: Policies, Incentives & Roadmap

The Vietnamese government has put real skin in the game to support digital economy growth. Key recent moves:

• Digital Technology Industry Law passed in mid-2025 (to take effect 1 Jan 2026), which introduces tax incentives, defines digital assets, and sets regulatory clarity around AI, IP, and tech investment. 
• For digital tech companies, incentives include corporate income tax exemptions for initial years, substantial reductions in subsequent years, and land rent waivers — particularly for high-impact sectors like AI, semiconductors, high-performance computing (HPC). For example, companies in AI / HPC may get full tax exemption for first two years, and 50% reduction for the next years, plus land-rent waivers. 
• Decree No. 180/2025/ND-CP establishes a legal framework for PPP (public-private partnerships) in science, technology, and digital transformation, including mechanisms for IP, funding support, research collaboration, and incentives tied to infrastructure for digital economy.

Also, Vietnam’s roadmap for its digital economy aims to increase the share of digital products and services in GDP, train more tech talent, and attract global tech investment. Trade reports peg the digital economy’s contribution at over 12% of Vietnam’s GDP in 2023, with projections to grow significantly by 2030.

Why Build a Tech Team in Vietnam?

For a long time, Vietnam was labeled the “budget option” in outsourcing. But that story is outdated. Today, building a tech team in Vietnam isn’t just about saving a buck — it’s about finding a sweet spot where quality, stability, and culture line up with your business goals.

High-Skilled Workforce

Vietnamese engineers come with rock-solid math and computer science foundations — the kind of skills that make them fast learners in AI, blockchain, and cloud. Vietnam even ranks among the top 10 globally on HackerRank for developer performance. In short: these folks don’t just code; they solve problems.

Higher Retention for Long-Term Partnerships

One thing that kills outsourcing relationships is churn. In Vietnam, attrition is way lower — around 5–8% compared to double-digit exits in other hotspots. Developers here value stability, career growth, and long-term partnerships. That means less turnover, less drama, and more consistency for your projects.

Competitive Costs

Here’s the deal: Vietnam offers developer rates of $15–30/hour (fluctuate based on seniority), compared to $60–100 in Western markets. But don’t mistake competitive for cheap — this isn’t about bargain-bin labor. Vietnam brings quality at a fair price, which is why more startups and enterprises are shifting their bets here. You get a leaner bill without sacrificing delivery. Win-win.

>>> Related: Vietnam IT Outsourcing Company: Everything to Know

Easy-to-Approach Culture & English Skills

Vietnam’s workforce is young, collaborative, and increasingly fluent in English. With 70% under 35, you’re working with a generation that grew up in globalized culture — agile, curious, and easy to sync with Western and Asian clients alike. Communication doesn’t feel forced; it feels like teamwork.

Peaceful & Stable Environment

Another reason Vietnam has become a rising star in outsourcing is its social stability. Ranked as one of the most peaceful countries in Asia, Vietnam offers a safe, politically stable, and investor-friendly environment. This sense of security creates a reliable backdrop for long-term partnerships, something every client values when building offshore teams.

Still wondering whether you should build a tech team in Vietnam? At AMELA Technology, we help companies explore flexible models – from staff augmentation to full offshore development centers — so you can scale with confidence.

How to Build a Tech Team in Vietnam

If you’re serious about expanding your tech or developer team in Vietnam, it’s not just about hiring a few devs and calling it a day. Done right, you get a scalable setup that feels like an extension of your HQ. Done wrong, you risk culture clashes, legal headaches, and churn. Here’s the playbook, refined from what we’ve seen work best in the market.

Choose the Right Hiring Model

First things first: know what you want to build. Are you putting together a lean MVP squad to test a product idea, or do you need a full offshore development center (ODC) for enterprise-scale operations?

Vietnam’s outsourcing market gives you flexibility, but you need to pick the right lane:

• Staff Augmentation: Fast, flexible, and great for plugging immediate skill gaps. Perfect if you already have PMs and architects in-house.
• Dedicated Development Team / ODC: Your offshore team acts like an extension of your HQ, but you don’t have to handle HR, payroll, or legal. It’s like renting a high-performance engine without owning the garage.
• Project-Based Outsourcing: Best when you have a fixed-scope project (like an app rebuild) and want a vendor to deliver end-to-end. Less overhead, but less control.

Startups often begin with 3–5 engineers under staff augmentation, moving fast without heavy commitments. Enterprises, on the other hand, might build 50+ engineer ODCs for long-term delivery. The clearer you are up front, the smoother everything else becomes. At AMELA, we’ve seen companies start with IT staff augmentation, then evolve into full ODCs once trust and scale make sense.

Balancing Team Size & Expertise

One of the trickiest calls when building a tech team in Vietnam is how big to start and how senior the engineers should be. Go too lean, and you’ll stall on delivery. Go too heavy, and you’ll burn budget without a clear ROI.

From our experience at AMELA, the sweet spot usually comes down to matching team size and expertise to the project stage:

• Small Projects or MVPs: A compact crew of 2–4 developers often works best. Pair one senior lead with juniors or mids, so you get speed and mentorship without overspending. This setup works wonders for startups who need to test the waters fast.
• Enterprise-Grade Builds: For complex systems (think fintech platforms or AI-driven apps), you’ll need 10+ engineers with mixed skill levels. Here, adding too many seniors can drive costs sky-high, so the balance is usually 20–30% senior, the rest mid-level, with juniors for support tasks.
• Scaling Pitfalls: Once you cross 15–20 people, communication becomes a challenge. Without clear processes, you risk silos and conflicts. That’s why we always recommend setting up team leads and agile ceremonies early, so structure grows with the team.

On expertise, the rule of thumb is simple: don’t skimp on seniors when the project complexity demands it. Juniors can shine with the right guidance, but when you’re dealing with cloud migration, AI models, or payment systems, you need battle-tested devs steering the ship.

It’s all about balance — finding the right mix of team size, expertise, and budget. We’ve helped clients start with a lean MVP team, then scale into a 30+ engineer ODC over two years, without blowing up cost or culture. The key was building the foundation right from day one.

>>> Related: Hire App Developer: Cost Breakdown

Handle Legal & Compliance Matters

This is where many companies stumble if they go solo when building a tech team in Vietnam. Vietnam’s legal landscape is straightforward, but you need to know the basics:

• Entity Setup vs. Outsourcing Vendor: Setting up your own entity gives control but also brings HR, tax, and legal responsibilities. Working with a vendor offloads that.
• Labor Laws: Expect up to 2 months probation, mandatory social insurance contributions, and a standard 40–48 hour work week.
• Data Protection: Vietnam introduced the Personal Data Protection Decree (2023), its GDPR-equivalent, so your contracts need solid clauses around IP and data.
• Contracts: Always cover SLAs, NDAs, and IP ownership transfers. Clear documentation avoids messy disputes later.
  Work Permits & Visas: If you’re sending expat managers, Vietnam requires proper visas and permits. Vendors often help smooth this process.

The shortcut? Partner with a vendor who already knows the terrain — at AMELA, we have a local legal team that handles these headaches so clients can stay focused on building.

Infrastructure & Operations Setup

Once the paperwork is done, you need to think about where and how your Vietnamese tech team will work.

• Office Space: Choices range from trendy coworking spots (~$150–200/desk in HCMC/Hanoi) to leased offices for bigger teams. Da Nang offers lower costs and a calmer lifestyle.
• IT Infrastructure: Vietnam now has in-region data centers for AWS, Azure, and GCP. Internet speed averages 100 Mbps+ in urban hubs, making remote collab smooth.
  HR/Admin: Standard perks include 13th-month salary, training budgets, and healthcare. These aren’t just “nice-to-haves” — they’re expected for retention.
• Cybersecurity: VPNs, SOC 2, ISO 27001 vendors, and strict access control are must-haves if you’re handling sensitive data.

Select a Reliable Partner

Your partner choice when you build a tech team in Vietnam can make or break the venture. The best outsourcing companies in Vietnam don’t just hand you resumes — they become your local operator. That means:

• Handling Legal & Compliance: From contracts and NDAs to payroll and social insurance contributions, they keep you compliant with Vietnam’s laws so you don’t have to become an expert overnight.
• Recruitment & Vetting: They tap into their local networks and pre-vetted talent pools, cutting down hiring cycles that might otherwise take months.
• Team Management Support: Beyond just HR paperwork, good partners help with onboarding, training, and retention perks — ensuring your offshore team runs as smoothly as your in-house squad.

Of course, track record still matters. Look for ISO/IEC 27001 or CMMI certifications, client case studies, and a local bilingual management team who can bridge cultural gaps.

At AMELA Technology, this is exactly our playbook. We don’t just connect you with developers — we manage the legal setup, hire the right engineers, and keep operations smooth through staff augmentation or ODC models. That way, you focus on product vision while we handle the rest.

Recruitment & Onboarding

Recruitment channels in Vietnam range from universities and tech job boards to vendors with pre-vetted pools. Once hired, the onboarding phase is critical:

• Share your company culture, values, and product vision early.
• Document workflows (GitHub repos, coding standards, Jira boards) so everyone stays aligned.
• Encourage knowledge transfer — pair senior and junior devs, run weekly demos, and keep feedback loops short.

This isn’t just about getting devs to code; it’s about making them feel like part of your team.

Managing Your Team

Finally, the day-to-day. Managing a Vietnam team isn’t hard, but it requires intention.

• Collaboration Tools: Slack, Jira, GitHub, ClickUp — the usual suspects work well.
• Agile/Scrum: Many Vietnamese teams are already Agile-trained, but they’ll adapt to your flavor of Scrum/Kanban.
• Cross-Cultural Communication: Direct feedback styles differ. It pays to encourage open dialogue and make it safe for devs to raise blockers.

With the right tech team setup, managing a Vietnam team feels less like “offshore” and more like “next door.”

>>> Related: Top 10 Software Outsourcing Companies in Vietnam 

Major Challenges in Building a Tech Team in Vietnam

The process to build a tech team in Vietnam comes with huge upsides, but it’s not all smooth sailing. Companies that succeed are the ones that anticipate the bumps and put solutions in place early. Here’s what you need to watch out for:

Talent Competition

Vietnam produces over 60,000 IT graduates a year (World Bank, 2023), but there’s still a crunch for senior engineers in certain stacks — think AI/ML, DevOps, or cloud security. The demand is growing faster than the supply.

Solution: Many successful companies take a hybrid approach — hire strong mid-level developers locally and pair them with senior leads, either from Vietnam or abroad. Partnering with a vendor also gives you access to pre-vetted talent pools so you don’t spend months hunting. At AMELA, for example, we bridge gaps by combining our 250+ in-house engineers with a vetted network of 10,000+ specialists.

Time Zone Differences

For EU and US clients, Vietnam runs 5–12 hours ahead, which leaves only a 3–6 hour overlap. If not managed, this can lead to slow feedback loops.

Solution: Many teams adopt a “follow-the-sun” model, where Vietnamese engineers code during their day, and clients review or test overnight. The next morning, devs already have feedback waiting. To keep things flowing, use tools like Jira, Slack, and Loom for asynchronous updates, and set clear “golden hours” for live calls.

Legal & Regulatory Risks

Vietnam’s legal framework is evolving. New rules like the Personal Data Protection Decree (2023) tighten how data must be handled, while tax and labor compliance requirements are getting stricter. For outsiders, it can feel like moving targets.

Solution: Unless you want to hire your own legal counsel in Vietnam, the best way is to work with a partner that already stays on top of compliance. A good outsourcing company will bake IP protection, NDAs, and tax compliance into the contract. This removes the risk of falling foul of regulations while you focus on delivery.

Scaling Beyond the Initial Team

Hiring your first 5–10 engineers is one thing; scaling to 20+ developers sustainably is another. Without a strong HR engine, you’ll run into retention problems, misaligned processes, and culture drift.

Solution: Scaling requires structure. That means clear onboarding, competitive perks (13th-month salary, training budgets), and strong team leads. Many firms lean on outsourcing partners who already have the HR, payroll, and retention playbooks in place. This is where ODC models shine — the vendor manages the operational grind while you focus on culture and product.

Conclusion

Building a tech team in Vietnam isn’t just about saving costs — it’s about tapping into a market where talent, stability, and culture align to support long-term growth. From defining your goals and choosing the right model, to handling legal frameworks and scaling beyond the first few hires, success comes from making informed choices at every step.

If you’re exploring how to scale or build a tech team in Vietnam, don’t navigate it alone. At AMELA Technology, we’ve helped startups and enterprises alike build everything from lean MVP squads to enterprise-grade ODCs. Our support spans legal, recruitment, operations, and ongoing management — so you can focus on product, while we handle the rest.

Ready to see how Vietnam can power your next big build? Reach out to AMELA Technology today and explore the staffing and outsourcing models that fit your goals.

Editor: AMELA Technology