How much does it cost to outsource software development to Vietnam?

What sets the rate

Vietnam software rates are driven by seniority first, then by technology stack and contract length. A senior engineer in a scarce specialism costs more than a mid level generalist, and longer dedicated engagements price better than short project work. The delivery model matters too, since a dedicated team, a project build and staff augmentation each price differently.

As a rule of thumb, outsourcing engineering to Vietnam runs at a fraction of comparable Western in house cost, which is why cost reduction is one of the most common reasons buyers start the conversation.

How a dedicated team is priced

Most buyers do not hire a single developer, they stand up a pod. A typical pod blends senior, mid and junior engineers with a lead, and is priced as a monthly team rate rather than a per hour figure. That monthly rate is usually well below the fully loaded cost of an equivalent Western team once salary, benefits, overhead and recruitment are counted.

The exact number depends on the mix of roles and seniority. The cost savings calculator gives a like for like comparison against your current or planned Western team.

Hidden costs to plan for

A responsible estimate includes more than the headline rate. Plan for statutory employer contributions, a thirteenth month payment that is customary in Vietnam, and a short ramp up period while the team learns your codebase and domain. A good partner folds these into a transparent monthly rate so there are no surprises.

• Statutory social, health and unemployment insurance contributions
• Customary thirteenth month and Tet period payments
• A ramp up period of a few weeks as the team onboards
• Tooling, security and equipment where not already provided

How Vietnam compares

Against Western in house delivery, Vietnam typically lands in the range of a large cost reduction while keeping engineering quality high. Against other offshore destinations, Vietnam is competitive on rate and tends to stand out on retention, which lowers the hidden cost of turnover and rehiring over a multi year roadmap.

Frequently asked questions

How much does it cost to hire a developer in Vietnam?

Vietnam developer rates are a fraction of Western in house cost and are usually priced as a monthly dedicated team rate rather than per hour. The figure depends on seniority, tech stack and contract length.

What does a dedicated development team in Vietnam cost per month?

A pod of five blended engineers with a lead is typically well below the fully loaded cost of an equivalent Western team. The exact rate depends on the mix of roles and seniority.

What hidden costs come with outsourcing to Vietnam?

Plan for statutory employer contributions, a customary thirteenth month payment and a short ramp up period. A good partner folds these into a transparent monthly rate.