In the digital era, the demand for skilled technology professionals continues to surge worldwide. For companies looking to recruit tech talents or expand their engineering teams in emerging markets, Vietnam has rapidly emerged as a compelling destination. With a growing pool of tech talent, competitive salary levels, and increasing expertise in cutting-edge technologies, Vietnam offers a unique blend of advantages. However, recruiting tech talents in this market requires a nuanced understanding of local dynamics, talent shortages, and evolving candidate expectations. This post explores the opportunities and challenges of recruiting tech talents in Vietnam and offers insights on how to build successful recruitment strategies.
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Vietnam’s Tech Talent Pool: Rapid Growth Amid a Significant Shortage
Vietnam’s technology workforce is growing rapidly, with over 57,000 IT graduates entering the labor market annually, joining about 530,000 active IT professionals (TopDev Vietnam IT Market Report, 2023). This growth is driven by strong government support for STEM education and innovation, supported by a young population with a median age of around 32. However, despite this expansion, Vietnam faces a significant shortage of skilled tech workers.
The same report projects a shortfall of 150,000 to 200,000 IT personnel each year by 2025, mainly due to a gap between university training and employer needs. Only about 30% of graduates possess the practical skills required for key roles like back-end, front-end, and full-stack development, especially in languages such as JavaScript, Java, PHP, C#/.Net, and Python. This shortage is intensified by the booming digital economy, which is expected to create roughly 700,000 new IT jobs by 2025, making strategic recruitment essential for companies to stay competitive.
Competitive Salaries Reflect Growing Demand for Specialized Skills
As demand for tech talent grows, salaries in Vietnam’s IT sector have steadily increased, especially for specialized roles. The ICT sector contributes about 15% to Vietnam’s GDP and grows annually by 8%, with the AI market alone expected to exceed $750 million in 2025. According to salary data from ITviec and Nucamp Blog (2024-2025), AI engineers earn between $1,100 and $2,060 per month, cybersecurity experts have seen salary hikes up to 55%, and data scientists command annual salaries of $34,000 to $50,000.
Despite these rises, Vietnam remains highly cost-competitive compared to other Southeast Asian hubs. For instance, mid-senior developers typically earn around $2,500 monthly in Vietnam, less than half of what comparable talent earns in Singapore or Hong Kong. This cost advantage makes Vietnam an attractive destination for companies aiming to recruit quality tech talent while managing budgets effectively.
Vietnam’s Growing Expertise in Emerging Technologies
Vietnam is no longer just an outsourcing destination for basic software development. The country is rapidly advancing in strategic and emerging technologies, including artificial intelligence, blockchain, semiconductor manufacturing, green energy, and 5G/6G networks. This shift is supported by collaborations among universities, research institutions, and industry players, fostering an environment of continuous learning and innovation.
Many Vietnamese developers also possess strong English proficiency, which facilitates communication with international clients and teams. This combination of technical expertise and language skills makes Vietnam an attractive hub for companies recruiting tech talents to develop next-generation technologies and digital products.
Challenges in Hiring Tech Talent: Intense Competition and Candidate Expectations
Despite the advantages, recruiting tech talents in Vietnam remains challenging. The demand for skilled professionals, especially in specialized areas like AI, blockchain, and game development, far exceeds supply, creating fierce competition among startups, local firms, and multinational corporations all targeting the same limited candidate pool. The recruitment process is often lengthy and complex, with top candidates receiving multiple offers and expecting timely, personalized communication. Companies that delay or fail to engage effectively risk losing talent to competitors.
Additionally, many skilled professionals consider relocating abroad for better opportunities, worsening the shortage. Moreover, although the number of IT graduates is high, many lack practical skills and experience, forcing companies to invest in training and upskilling as part of their recruitment strategies to bridge this gap.
Best Practices for Recruiting Tech Talents in Vietnam
To succeed in Vietnam’s competitive tech talent market, companies must adopt a strategic, localized recruitment approach rather than relying solely on job portals. Effective recruiters combine multiple channels, such as personal referrals, headhunter networks, and partnerships with local recruiting agencies or Employer of Record (EOR) services. These collaborations help navigate Vietnam’s labor laws, streamline payroll and benefits, and access passive candidates who may not be actively job hunting but are open to opportunities.
Clear, transparent communication about job roles, career paths, and company culture is essential to attract and retain candidates. Structured technical assessments and interviews ensure candidates meet required skill levels. Additionally, companies that engage candidates proactively with personalized follow-ups and flexible interview scheduling tend to achieve better hiring outcomes.
Investing in employee development is also critical. Offering training programs, mentorship, and chances to work on innovative projects helps bridge skill gaps and boosts retention. Vietnamese developers highly value continuous learning and career growth, making these investments key to long-term success in talent acquisition and retention.
Read Related: Ultimate Guide to Hire Contractors in Vietnam in 2025 | InCorp Vietnam
Top Vietnam Tech Talent Recruiting Agencies
Navigating Vietnam’s competitive tech talent market is complex, which is why many companies turn to specialized recruiting agencies to find the right candidates efficiently and compliantly. Among the top agencies, InCorp Vietnam stands out for offering comprehensive, end-to-end recruitment solutions tailored to the local market.
InCorp Vietnam is not only a leading recruitment agency but also a trusted provider of Employer of Record (EOR) and business process outsourcing services across Vietnam and the Asia-Pacific region. With a presence in nine countries and over 1,500 professionals supporting more than 20,000 clients, InCorp excels in sourcing top tech talent while ensuring compliance with Vietnam’s labor laws, including Foreign Contractor Tax (FCT) regulations. They manage payroll, legal contracts, and tax obligations, helping international companies hire efficiently without setting up a local entity.
Explore InCorp Vietnam’s https://vietnam.incorp.asia/hr-payroll/employer-of-record/
Explore InCorp Vietnam’s Employer of Record Services
Other notable recruiting agencies include:
- Second Talent: Specializes in sourcing top 5% remote tech professionals with flexible hiring models and rapid onboarding across industries like fintech, gaming, and blockchain.
- Talentnet: A joint venture with Mercer, offering HR consulting, recruitment, and training services, combining international standards with local expertise.
- Reeracoen Vietnam: A subsidiary of Japan’s Neo Career Group, known for their international approach and strong connections in the Japanese business community.
- Robert Walters Vietnam: Focuses on mid-to-senior level tech placements, especially in software engineering, data analytics, and cybersecurity for international and local firms undergoing digital transformation.
How InCorp Can Help
InCorp Vietnam provides end-to-end recruitment solutions designed to help businesses succeed in Vietnam’s highly competitive tech talent market. We combine local expertise with regional reach to support companies in sourcing, attracting, and retaining top-tier tech professionals. Our services go beyond traditional hiring—we offer executive search, contract staffing, and Employer of Record (EOR) solutions to ensure full compliance with Vietnam’s labor laws while reducing hiring time and costs. With deep knowledge of market salaries, cultural expectations, and candidate behaviors, InCorp helps businesses build strong, scalable teams that align with long-term growth goals.
