Software Developer Salary In Vietnam – The Complete Guide In 2023

As the demand for tech talent continues to outpace its supply, the software developer salary is also expected to rise in 2023. This development forces many businesses and startups to rethink their scaling strategy, opting for building offshore tech teams in Vietnam instead as a more sustainable solution.

However, this approach has one major challenge: how much does a Vietnamese software developer actually cost? After all, why expand a new tech team overseas if its cost does not justify the means? 

To stay competitive in Vietnam’s tech industry, companies must strike a balance between attractive salary offers and sustainable scaling strategies. This requires a deep understanding of the software developer salary landscape and market trends in the region.

 

4 Key Drivers of Software Developer Salary Rates in Vietnam

Before delving into the average pay rate for IT professionals in the country, it’s important to first understand the four key factors that affect it. Doing so will not only enable you to attract top-tier tech talent, but also prevent any unexpected costs during the recruitment process.

 

Key Driver #1: Software Developer Level/Experience

The salary of an employee generally increases with their experience, and this is particularly true for software developers, who require extensive knowledge, experience, and effort to progress in their careers.

In Vietnam, it’s common for developers to expect a raise each year as they progress in their careers or develop new skills. For instance, we often see a salary increase of 10-30% when someone moves from a junior to a senior role. When it comes to promotions to lead or manager positions, the increase can even reach up to 50%.

As a result, if you’re looking to hire top IT talent in Vietnam, it’s essential to offer competitive compensation that aligns with their value and expertise. 

 

Key Driver #2: Software Developer Technical Skillsets

Software development is a multifaceted field that requires a range of skills and expertise, and as such, there are a variety of positions that software developers can fill. However, even among developers with similar levels of experience and qualifications, those with specialized skills, programming languages, or unique experience may be in higher demand and command a higher salary.

When it comes to recruiting these in-demand professionals, companies may need to offer a more competitive salary to attract them. A general rule of thumb is to offer between 10% to 20% above the market average pay rate for such candidates. By doing so, companies can increase their chances of landing top tech talent and gain a competitive edge in the market.

 

Key Driver #3: Software Developer Location

In Vietnam, the cities of Ho Chi Minh and Hanoi are renowned for their abundance of tech talent. However, hiring IT professionals in these cities can be costly due to the higher living expenses and market demand. On the other hand, cities like Da Nang offer a more affordable option for businesses seeking to hire skilled software developers, with salaries averaging 10-20% lower than those in larger metropolitan areas.

 

Key Driver #4: Hiring Season

The hiring season is a crucial factor that significantly impacts tech salaries in Vietnam. The hot period, which runs from March to May, presents an ideal opportunity for businesses to ramp up recruitment efforts within a competitive budget, as many IT professionals start seeking new employment opportunities during this period.

In contrast, the cold season (October to January) sees a smaller pool of available software developers in the job market, as most of them are waiting for the salary review, 13th-month, and subsequent Tet bonus. Hiring during this time can be extremely challenging, and businesses may need to offer better salary packages to compensate candidates for foregoing their bonuses.

 

Vietnamese Software Developer Salary In 2023

By Level & Title

In Vietnam, software developer salaries are typically determined based on the level of experience and job title. The pay rate system is typically divided into four different levels: junior, mid-senior, senior, and tech lead/manager.

 

Junior/Entry Level: Less Than 2 Years Of Experience

Junior software developers typically have less than 2 years of experience and possess limited to basic knowledge of the language or tech stack. While they can complete simple tasks with given technologies, they require close supervision and guidance as they are still more prone to mistakes.

As businesses prioritize filling in the team leader position, junior developers are often the last hires. Consequently, their salaries are relatively lower, typically ranging from $500 to $1500/month.

 

Mid-Senior/Experienced: 2- 4 Years Of Experience 

Mid-senior developers are professionals who have been working in the field for at least 2-4 years. They have gained experience and developed a solid foundation of knowledge in their chosen programming language or technology stack. While they are able to work on typical tasks with fluency and minimal supervision, they may still require guidance and support for more complex projects.

As they gain more experience, mid-senior developers often take on more responsibilities and may be tasked with mentoring junior developers. Their salary is typically higher than that of junior developers, ranging from around $800 to $2000 per month. This reflects their increased skills and experience, and their ability to take on more complex work.

 

Senior: 4-7 Years Of Experience

Senior software developers have extensive knowledge and experience with their language or tech stack, typically gained through 4-7 years of professional work. They are able to tackle complex tasks with minimal guidance and often provide solutions to problems for lower-level developers. 

Given their expertise and responsibilities, senior-level developers command salaries that are typically 30% to 50% higher than those of mid-senior-level developers, ranging from $1500 to $3500 per month.

 

Tech Lead/Manager: 7-10 Years Of Experience Onwards

Tech leads are often the first hires of startups and SMEs, as they serve as the MVPs within remote teams. They must possess extensive experience to understand the project’s scope and requirements, as well as excellent communication skills to bridge the gap between the company and Vietnamese developers. As a result, their salaries are typically ramped up by 30% to 40% compared to the senior level.

As firms expand their tech operations and create larger teams, they will need to pay even higher rates to secure a good manager, typically no less than $3500. Managers are responsible for developing long-term plans for IT product development and overseeing the hiring process for new team members.

 

By Role 

In addition to the level of experience, the specific tech position held by a software developer also plays a significant role in determining their salary in Vietnam.

While the salary for software developers in Vietnam varies based on their job position and level of experience, it is generally lower than that of Singapore. Despite this, many developers in Vietnam possess comparable skill sets and technical abilities to their Singaporean counterparts.

Web developers, particularly full-stack developers, tend to receive the highest salaries due to the increased demand for web technologies in Vietnam. It is expected that this trend will continue as more businesses in Vietnam seek to enhance their digital capabilities.

To attract and retain top tech talent, companies operating in Vietnam may need to offer higher salary rates than local competitors. Based on our experience working with startups worldwide, we recommend starting with a salary increase of 10-20% above the market rate.

 

Conclusion

Hiring software developers in Vietnam can be a cost-effective solution for startups looking to build a dedicated tech team. However, it’s important to approach the hiring process with care and invest in it appropriately to ensure success. Overpaying or underpaying developers can put your business at risk and hinder your expansion goals. 

To make informed hiring decisions, we recommend reading our Vietnam Developer Salary Report, which provides valuable insights into compensation trends for software developers in Vietnam. 

Additionally, our team of experts is available to provide personalized consultation and help you achieve your hiring goals. Contact us today to learn how we can assist you in building a top-performing tech team in Vietnam.