Vietnam Offshore Development Centre. How to Choose the Right Partner

In the context of fierce competition in the global market, businesses are constantly seeking breakthrough solutions to optimize costs while ensuring superior performance. An Offshore Development Center (ODC) has emerged as a top strategic choice. This model not only provides access to highly skilled professionals but also offers a significant cost-saving advantage.

Among prominent ODC destinations, Vietnam is rapidly gaining traction. With a dynamic technology ecosystem, a young and abundant IT workforce, a strategic geographical location, and supportive government policies, Vietnam has become a "promised land" for international businesses.

However, establishing a successful ODC in Vietnam, selecting the right partner is a crucial factor. Businesses need to grasp the necessary information to find the most suitable ODC Partner.

Let's dive into this article to gain a deeper understanding of offshore software development services in Vietnam. We are confident that this information will help you make the right decision and find a reliable partner.

Vietnam Offshore Development Centre overview

To gain a clearer understanding of Vietnam, a key market in the IT sector, let's explore the country's outstanding advantages. Strategically located in Southeast Asia, Vietnam operates within the GMT+7 time zone, which is convenient for business collaboration with many regions around the world.

Vietnam's economic growth has consistently been impressive, with its 2024 GDP estimated at 476.4 billion USD. This growth provides a strong impetus for the information technology sector. With a young and abundant population projected to reach 102 million people in 2025, Vietnam possesses a high-quality workforce, especially in the tech field. This has enabled the country's total IT revenue to reach a milestone of $45.5 billion in 2024, affirming its solid position on the global technology map.

These factors not only make Vietnam an attractive market but also a reliable partner for any business seeking sustainable and efficient growth.

What is a Vietnam Offshore Development Centre

An Offshore Development Center (ODC) in Vietnam is a strategic business model that allows companies from high-labor-cost countries like the U.S., Europe, Japan, South Korea, and Brazil to establish a dedicated team of software engineers. This team is responsible for operating and maintaining the company's technology products. The ODC model not only helps businesses significantly reduce costs but also ensures they retain a high-quality, long-term workforce.

Benefit Vietnam Offshore Development Centre

Vietnam has become an inevitable and leading choice for international businesses. The following core advantages explain why Vietnam is now a premier offshore software development hub in Asia.

High-Quality, Abundant Workforce with Competitive Pricing

Each year, Vietnam produces over 50,000 graduates in technology-related fields, continuously replenishing a young and abundant talent pool. Beyond sheer numbers, the quality of Vietnam's tech workforce is highly regarded. According to Topcoder's Global Skills Index, Vietnam ranks second in the Asia-Pacific region and eighth among 83 countries. Similarly, SkillValue places Vietnam second globally for programmer and freelancer rankings.

In addition to its rich talent pool, personnel costs in Vietnam are exceptionally competitive. According to US News (2024), Vietnam scored 99.6 out of 100 for low manufacturing costs, ranking second in Asia among 55 countries.

These advantages allow Vietnamese ODC firms, such as KIMEI Global, to offer high-quality personnel at a cost of approximately 25 USD per software engineer.

See more: 7 Best Countries to Outsource Software>

Political and Social Stability with Pro-Investment Policies

Vietnam is widely recognized as one of the most politically stable nations in the world. Led by the Communist Party of Vietnam, the country maintains peace and security, creating an ideal environment for foreign investors. Vietnamese society is harmonious, free from religious or discriminatory conflicts, allowing its citizens to coexist peacefully and forming a strong foundation for sustainable development.

Furthermore, Vietnam has established diplomatic ties with nearly 170 countries, including all major global powers. As of May 2025, Vietnam has 13 Comprehensive Strategic Partnerships with influential economies such as China, Russia, India, South Korea, the United States, Japan, Australia, France, Malaysia, New Zealand, Indonesia, Singapore, and Thailand. The country has also actively pursued international trade agreements, signing 16 Free Trade Agreements (FTAs) and participating in key organizations like the WTO, APEC, and ASEAN.

The Vietnamese government demonstrates robust support for the IT industry through exceptional incentive policies:

• Corporate Income Tax (CIT) Incentives: Science and technology companies are exempt from CIT for the first four years and enjoy a 50% reduction for the next nine years.
• VAT Exemption: All software development projects, including outsourcing services, are exempt from Value-Added Tax.

These factors affirm Vietnam's position as a safe, promising, and highly supportive destination for businesses investing in the tech sector.

Strong Growth in Technology and Digital Innovation

Vietnam is asserting its position as a leading technology hub, as evidenced by impressive figures. In 2024, the country's total Information and Communications Technology (ICT) revenue was estimated at 1 65 billion USD (source). This remarkable growth is projected to continue, with the digital economy's revenue forecasted to increase by 14% compared to 2024.

This rapid development is also reflected in international rankings. According to Oxford Insights, Vietnam ranked 39th out of 193 countries in the 2023 AI Readiness Index, demonstrating its solid preparation for the new era of technology.

Furthermore, the presence of global tech corporations like NVIDIA and Marvell in Vietnam is a clear testament to the country's technological quality and potential. This makes Vietnam a highly compelling choice for Offshore Development Centers (ODCs).

See more: Offshore IT Outsourcing: Key Concepts & 2025 Trends

How to choose the right ODC partner

Choosing the Right Region and ODC Partner in Vietnam

While Vietnam is an ideal destination, selecting the right city is a critical first step for companies looking to establish an ODC. Consider these three leading technology hubs:

• Ho Chi Minh City: As the economic powerhouse of the South, Ho Chi Minh City boasts a vibrant and diverse tech ecosystem. It is home to numerous large technology companies, offering an abundant and varied pool of resources for ODC services.
• Hanoi: Similar to Ho Chi Minh City, Hanoi serves as a major technology center in the North. As the nation's capital, it attracts a significant number of businesses seeking to build and grow their ODC, thanks to its quality workforce and stable business environment.
• Da Nang: Located in Central Vietnam, Da Nang is emerging as a bright spot for technology. Although its resource pool may be smaller than the two major cities, Da Nang is attracting substantial investment and experiencing rapid growth, making it an appealing location for ODC development.

Once a region is narrowed down, the next and most crucial step is choosing a reliable ODC partner. Focusing on one of these three cities will make it easier for businesses to find and evaluate a suitable partner that aligns with their business strategy.

See more: Top 10 Offshore IT Outsourcing Companies in Vietnam

Determining the Scope and Budget for Your ODC

Before searching for an ODC partner, defining your project scope and the required team size is a crucial first step. Depending on your objectives, you can choose the most suitable model:

• For a trial or MVP: Start with a small team, typically 3 to 5 engineers.
• For a mid-sized project: Scale up to a team of 10 to 20 people.
• For a large or long-term project: Deploy a larger team of 20 or more, including developers, QA specialists, testers, and a project manager for comprehensive effectiveness.

In parallel, creating a detailed budget plan is essential. Beyond personnel costs, businesses need to account for expenses related to operations, management, security, and future scalability. While ODC in Vietnam can offer 40-60% cost savings compared to in-house hiring in the U.S. or Europe, it's wise to allocate a contingency fund for potential team expansion as the project grows. A clear financial plan will help you select the right partner and mitigate the risk of cost overruns during implementation.

Partner's Experience and Technical Capabilities

When selecting an ODC partner, evaluating their experience and technical capabilities is a crucial factor. Your partner should demonstrate solid expertise in the specific domain and technology you require, whether it's web development, mobile apps, AI, or blockchain. You should carefully consider the following points:

• Portfolio and Case Studies: Ask to see examples of their previous projects. A partner with experience in your specific industry will better understand the unique challenges and requirements, helping to shorten the implementation time and minimize errors.
• Client List: Inquire about their past clients.
• Team Skills: Assess the core team's capabilities, including developers, QA/testing specialists, and DevOps engineers.

An experienced partner not only guarantees the quality of the work but also provides peace of mind, ensuring your project stays on track from the very beginning.

Corporate Culture and Communication: Key Factors for Effective Partnership

The success of an ODC project depends not only on technical expertise but also on the partner's cultural alignment and communication skills. When both parties share similar values and work ethics, collaboration becomes seamless, saving time and ensuring maximum efficiency. A professional partner will demonstrate transparency, an open-minded approach, and a strong sense of teamwork.

In addition to culture, effective communication is absolutely crucial, especially when working remotely. Look for a partner who can:

• Be Flexible and Proactive: Understand various communication methods (email, chat, video calls) and proactively provide progress updates and regular reports.
• Speak Clearly: Communicate in a common language (typically English) with clarity and conciseness to prevent misunderstandings and ensure information is exchanged accurately.

These factors will help build a strong, long-term partnership, setting the stage for sustainable growth.

Intellectual Property and Security: A Top Priority for Your Partner

When choosing an ODC partner, a strong commitment to data security and intellectual property rights is paramount. You need to verify if the partner complies with international security standards like ISO 27001, GDPR, and is willing to sign a Non-Disclosure Agreement (NDA). These commitments serve as a shield, ensuring that your source code, data, and intellectual assets are securely protected from unauthorized access or misuse.

Selecting the right ODC partner is a strategic decision with a long-term impact on your product's success. An ideal ODC is not just a cost-saving solution but an extension of your in-house team, contributing to the sustainable growth of your business.

KIMEI Global - Offshore Development Centre partner in Vietnam

KIMEI Global is proud to be the trusted partner for numerous international businesses in establishing their Offshore Development Centers (ODC) in Vietnam. With a team of highly skilled software engineers, international-standard management processes, and flexible implementation capabilities, we deliver optimal software development solutions that help clients save costs while ensuring quality and meeting deadlines.

We are more than just a staff provider. KIMEI Global acts as a strategic partner—from initial consultation and solution design to project management, data security, and long-term scalability. This allows our clients to focus on their core business strategies, while our tech team in Vietnam operates seamlessly as a true extension of their own company.

With a strong commitment to quality, transparency, and security, KIMEI Global has solidified its position as a reputable, professional, and reliable ODC partner in the Vietnamese market.