A comprehensive guide to software outsourcing to Vietnam for your next projects in 2026

PowerGate Software is a leading software product studio in Vietnam

For many years, when people discussed outsourcing software, the conversation often centered on India or Eastern Europe. Vietnam sat quietly in the background, growing its engineering base, building products for foreign clients, and learning how global software delivery really works. However, Vietnam is no longer in the background nowadays. More founders, CTOs, and product leaders are actively searching for software outsourcing to Vietnam, not just because of cost, but because of how well Vietnamese teams fit into modern product development. 

This article looks at why Vietnam has become such an attractive outsourcing destination, which companies stand out in a crowded market, and what challenges you should expect when working with a Vietnamese software partner.

Why software outsourcing to Vietnam makes sense

The first reason is obvious, but still worth saying: Cost efficiency. 

Vietnamese software engineers typically cost 40 to 60 percent less than their counterparts in the US, Western Europe, or even some parts of Eastern Europe. But lower cost does not mean lower quality. Over the last decade, Vietnam invested heavily in STEM education. Universities in Hanoi, Ho Chi Minh City, and Da Nang are producing tens of thousands of engineers every year, many of them trained in modern frameworks, cloud platforms, AI-driven development, and low-code/no-code integration,...

The second reason is technical maturity.

Vietnamese teams are no longer just coding what you tell them to code. Many companies now have experience building SaaS platforms, fintech systems, healthcare software, and large-scale enterprise solutions. They understand DevOps, microservices, cloud infrastructure, and how to ship features without breaking production. You do not need to explain every small thing. They get it.

Then there is communication, which used to be a weak point.

That has changed a lot. English proficiency among software professionals is much higher than before. Most PMs, BAs, and senior engineers can communicate clearly, even if sometimes the grammar is a bit rough. Still, they can talk about product goals, user flows, and technical tradeoffs. And honestly, that matters more than perfect English.

Time zone is another quiet advantage.

Vietnam sits in a place that overlaps well with Australia, Asia, and even Europe. Many teams work late hours to match US schedules. You wake up and see progress. It feels good. There is momentum.

And finally, work ethic.

Vietnamese engineers tend to care. They stay late when a release is close. They try to solve problems, not just close tickets. This is not always true, of course, but it is common enough that foreign clients notice.

Top software outsourcing companies in Vietnam

Vietnam has hundreds of outsourcing firms. Some are small, some are massive. A few stand out because of consistency, client trust, and delivery track record.

FPT Software: Founded in 1999, FPT Software is probably the most internationally recognized Vietnamese tech brand. They work with Fortune 500 companies and have delivery centers all over the world. Their services range from traditional software development to AI, automotive software, and digital transformation projects.

CMC Global: CMC Global is part of the CMC Corporation, one of Vietnam’s largest tech groups. They serve big enterprises and government clients, offering everything from application development to cloud and cybersecurity.

PowerGate Software: PowerGate Software takes a slightly different approach. Instead of acting like a body shop, PowerGate positions itself as a product engineering partner. The company works closely with clients in fintech, healthcare, education, and SaaS, helping them design, build, and scale real products.

What makes PowerGate Software interesting is how deeply they get involved. Teams do not just code. They question requirements, suggest better technical paths, and think about long-term maintainability. Many clients stay for years, not months. That says something. Also, with offices in Vietnam and a strong presence in the US and UK, PowerGate Software is comfortable working across cultures and time zones.

TMA Solutions: TMA is one of the oldest and largest software outsourcing companies in Vietnam. They have thousands of engineers and serve global clients across telecom, finance, logistics, and more. Their strength is scale and process. If you need a big team quickly, TMA can do that.

Saigon Technology: Saigon Technology focuses on offshore development teams and custom software projects. They work with startups and mid-sized companies, especially in web and mobile development. Their teams are known for being quite structured, with clear communication and stable delivery.

NashTech Vietnam: NashTech, part of Nash Squared, brings strong international management practices to Vietnam. They focus on enterprise clients and long-term digital transformation programs. Their teams often integrate deeply with client organizations.

KMS Technology: KMS is known for software development and testing services. They have established a reputation for quality and reliability, particularly among clients in North America. Many startups and mid-sized companies use KMS as their core offshore team.

Challenges, and how to deal with them

Outsourcing to Vietnam is not magic. There are challenges. Some of them will surprise you.

One common issue is cultural communication style.

Vietnamese engineers are polite. Sometimes too polite. They might say yes even when they are not fully sure. This can lead to misunderstandings. The best approach is to encourage open-ended questions and honest feedback. 

Another challenge is requirement clarity.

If you send vague specs, you get vague results. That is true anywhere, but it is especially true when working across cultures. Invest time in product discovery, wireframes, and technical documentation. The better you explain your vision, the better the outcome.

Quality control also matters.

Not all Vietnamese companies have strong QA processes. Some focus too much on speed. You should ask about testing, code reviews, CI pipelines, and release management. A serious partner will be happy to explain their process.

And finally, long-term stability.

Vietnam’s tech market is competitive. Engineers get offers all the time. You want a partner that can retain talent and keep your core team intact. This is where company culture and leadership really show.

Vietnam is no longer just a cheap outsourcing destination. It is a serious place to build serious software. With the right partner, you can create products that scale, compete, and survive in tough markets. If you are exploring software outsourcing to Vietnam, take your time. Talk to several companies. Look at how they think, not just what they quote. And when you find a team that feels like a real extension of your own, that is when things start to work.