Hiring offshore software developers has become a strategic move for many global companies seeking high-quality engineering talent at a reasonable cost. Among emerging destinations, Vietnam stands out thanks to its strong technical workforce, competitive pricing, and growing reputation as a reliable outsourcing hub.
In this article, we break down how much it costs to hire offshore software developers in Vietnam, what factors influence pricing, and why more U.S., European, and APAC companies are choosing Vietnam for long-term software development partnerships.
Why Vietnam Is a Popular Offshore Development Destination
Over the past decade, Vietnam has transformed into one of Asia’s fastest-growing technology hubs. The country produces over 50,000 IT graduates annually, with strong capabilities in web development, mobile apps, cloud computing, AI, and enterprise software.
Several factors contribute to Vietnam’s rise in offshore development:
- Competitive labor costs compared to the U.S., Europe, and even India
- A young, tech-savvy workforce with strong STEM education
- Growing English proficiency, especially in software teams
- Political stability and pro-business IT policies
- Experience working with global clients across time zones
Because of these advantages, offshore software development in Vietnam is now widely adopted by startups, SMEs, and enterprises alike.
Average Cost to Hire Offshore Software Developers in Vietnam
The cost of hiring offshore developers in Vietnam varies depending on experience level, technology stack, and engagement model. On average, hourly rates are significantly lower than in Western markets, while maintaining solid quality standards.
Typical Hourly Rates in Vietnam
- Junior developers: $18 – $25/hour
- Mid-level developers: $25 – $35/hour
- Senior developers: $35 – $50/hour
- Tech leads / architects: $45 – $65/hour
In comparison, similar roles in the U.S. or Western Europe often range from $80 to $150+ per hour.
For long-term projects, companies often opt for monthly or dedicated team pricing, which further optimizes costs.
Cost Comparison: Vietnam vs Other Offshore Markets
Vietnam is frequently compared with traditional outsourcing destinations like India, Eastern Europe, and the Philippines.
- Vietnam vs India: Vietnam offers slightly higher rates but often better communication, lower attrition, and more stable team continuity.
- Vietnam vs Eastern Europe: Vietnam is significantly more affordable, especially for full-scale development teams.
- Vietnam vs Philippines: Vietnam has a stronger engineering focus, especially for complex software and AI-driven projects.
This balance of cost and capability makes outsourcing in Vietnam particularly attractive for companies that prioritize both budget control and technical quality.
Factors That Affect Offshore Development Costs in Vietnam
While Vietnam is cost-effective overall, pricing can still vary based on several key factors:
- Technology Stack
Specialized skills such as AI/ML, blockchain, cloud architecture, or data engineering typically command higher rates than standard web or mobile development.
- Team Composition
A team with senior developers, QA engineers, DevOps, and a project manager will cost more than a small developer-only setup—but often delivers faster and more predictable results.
- Engagement Model
- Time & Material (T&M): Flexible, pay-as-you-go model
- Fixed Price: Best for well-defined scopes
- Dedicated Team: Monthly rate, ideal for long-term scaling
Dedicated teams are often the most cost-efficient option for ongoing development.
- Project Complexity & Duration
Longer projects typically benefit from discounted rates and stable staffing, reducing onboarding and ramp-up costs.
Hidden Costs to Consider (and How Vietnam Minimizes Them)
When evaluating offshore development costs, companies should also consider indirect expenses such as:
- High developer turnover
- Communication overhead
- Rework due to quality issues
- Time zone misalignment
Vietnam performs well in these areas due to lower attrition rates, strong work ethics, and overlapping working hours with APAC, Europe, and partial U.S. time zones. These factors help reduce long-term total cost of ownership, not just hourly rates.
Is Hiring Offshore Developers in Vietnam Worth It?
For many companies, the answer is yes—especially when projects require scalability, speed, and cost control without sacrificing quality.
Vietnam is particularly well-suited for:
- Startups building MVPs and scaling products
- SMEs modernizing legacy systems
- Enterprises expanding development capacity
- Companies seeking long-term offshore partners rather than short-term contractors
With the right vendor and clear processes, offshore teams in Vietnam can function as an extension of in-house engineering departments.
Final Thoughts
The cost to hire offshore software developers in Vietnam is highly competitive, typically ranging from $18 to $50 per hour, depending on expertise and project needs. Combined with a skilled workforce, improving infrastructure, and global delivery experience, Vietnam continues to strengthen its position as a top-tier offshore development destination.
For companies exploring global delivery models, offshore software development in Vietnam and broader outsourcing in Vietnam offer a compelling mix of affordability, talent quality, and long-term scalability.
