When I talked with startup founders, I quickly learned that scaling globally isn't just about entering new markets – it's about finding the right talent to drive that growth. The competition for skilled tech talent was (and still is) fierce, and we spent months trying to fill crucial engineering roles at home only to lose candidates to bigger firms. Desperate to keep innovating, the startup founders looked beyond our home turf for a solution. That’s when Vietnam entered the picture – and it didn’t just solve our hiring problem, it fundamentally changed how we scale our company. In this article, I'll share why Vietnam’s tech scene has become a “secret weapon” for global startups, backed by data, experience, and a real case study. The Global Tech Talent Crunch It’s no secret that there’s a worldwide crunch for tech talent. An internal McKinsey survey found that only 16% of executives feel comfortable with the amount of technology talent they have available to drive digital initiatives. A full 60% said that the scarcity of tech skills is a major roadblock to growth. For startups, an unfilled developer or data scientist position can stall a product launch or derail a new feature. The good news is that today’s founders aren’t limited to hiring in their backyard. Remote work and global collaboration are now mainstream, especially post-2020. It’s no longer unusual for a startup in New York or London to have engineers in another country coding alongside their core team. In other words, talent is truly global – and smart companies are willing to build teams wherever great talent is found. This realization set the stage for us to explore options far beyond Silicon Valley. Vietnam's Emergence as a Tech Talent Hub Young Vietnamese developers, equipped with strong technical skills, are increasingly contributing to global projects. A few years ago, Vietnam might not have been the first place that came to mind for high-tech talent. But the landscape has changed dramatically. The country boasts a rapidly growing pool of tech talent, with over 1 million IT professionals, and its universities emphasize STEM education, producing tens of thousands of new engineering graduates each year. Over 50,000 IT graduates enter the workforce annually, feeding a youthful tech community (over half of Vietnam’s population is under 35). This talent pipeline is driven by a cultural enthusiasm for technology and innovation – coding and engineering are seen as gateways to prosperity, and that energy is palpable when you visit local tech hubs. Demand for these skills is skyrocketing. Industry projections estimate Vietnam will need around 500,000 tech workers by 2025 to meet the needs of its booming digital economy. The government is actively fostering this growth through educational initiatives and a National Digital Transformation Programme, aiming for the digital economy to contribute 20% of GDP by 2025. In other words, Vietnam isn’t just passively supplying talent – it’s strategically building a tech powerhouse. National programs offer special tax incentives and tech-focused education to boost the ecosystem, ensuring a steady flow of skilled developers and engineers in the years to come. The world is starting to take notice. According to recent data, there was a 111% increase in international hiring of high-skilled Vietnamese talent in 2024. Cost Advantage: High Quality at a Lower Cost Talent and skills aside, let's address the elephant in the room: cost. One of the reasons Vietnam is considered a “secret weapon” is the significant cost advantage it offers startups looking to scale their teams. Hiring developers in Vietnam can be dramatically more affordable than in Western countries – salaries can be 50–70% lower for comparable skill sets. By leveraging this cost difference, startups can stretch their runway, hire additional developers for the same budget, or invest more in product development and marketing. This isn’t about getting “cheap labor” – it’s about cost-effective quality. Operating in Vietnam allows companies to save money while maintaining high standards. Cultural Fit and Seamless Collaboration Building a remote team halfway across the world might sound risky, but we learned that integrating a Vietnam-based team can be surprisingly seamless with the right approach. Vietnam offers a relatively stable business environment with modern infrastructure in its tech centers. The country has invested heavily in high-speed internet connectivity and even established tech parks and innovation hubs to support IT companies. Political stability and pro-investment policies add to the ease of operating. (It’s telling that even tech giants like Samsung and Intel have set up large R&D centers in Vietnam, further validating the environment and contributing to the talent ecosystem.) For a global startup, this means you’re not venturing into some undeveloped frontier – you’re plugging into a well-connected, tech-savvy locale. That said, success with global teams isn’t only about infrastructure and skill. Cultural alignment and team integration are critical. To make our collaboration effective, we had to actively bridge these gaps. Here are a few lessons and best practices we picked up for integrating global teams: Encourage open communication: We worked hard to create a culture where everyone, regardless of location, feels comfortable speaking up.
Make them part of the core team: It’s easy for an overseas team to become siloed as “just the outsourcing office.” We took a different approach – our Vietnamese engineers are treated as an integral part of our company, not a separate unit. We align them with our core values and mission. We mix team members across regions for projects, so there is no “us vs. them.”
Leverage local leadership and partners: One of the smartest moves they made was hiring a local team lead in Vietnam and partnering with local organizations. A local manager who understands Vietnamese work culture, holidays, and norms can mediate and mentor the team in ways a foreign manager might struggle to.
Invest in growth and learning: We learned that Vietnamese tech talent has a hunger to learn and grow. To keep our team at the cutting edge, we supported continuous learning initiatives – sponsoring online courses in new technologies, sending folks to tech conferences (even if virtual), and hosting internal hackathons and knowledge-sharing sessions. Encourage open communication: We worked hard to create a culture where everyone, regardless of location, feels comfortable speaking up. Encourage open communication Make them part of the core team: It’s easy for an overseas team to become siloed as “just the outsourcing office.” We took a different approach – our Vietnamese engineers are treated as an integral part of our company, not a separate unit. We align them with our core values and mission. We mix team members across regions for projects, so there is no “us vs. them.” Make them part of the core team Leverage local leadership and partners: One of the smartest moves they made was hiring a local team lead in Vietnam and partnering with local organizations. A local manager who understands Vietnamese work culture, holidays, and norms can mediate and mentor the team in ways a foreign manager might struggle to. Leverage local leadership and partners Invest in growth and learning: We learned that Vietnamese tech talent has a hunger to learn and grow. To keep our team at the cutting edge, we supported continuous learning initiatives – sponsoring online courses in new technologies, sending folks to tech conferences (even if virtual), and hosting internal hackathons and knowledge-sharing sessions. Invest in growth and learning By putting in effort on these fronts, our collaboration with our Vietnam team became very smooth. Time zone differences became a minor inconvenience rather than a blocker – we set up a few hours of overlap each day for real-time discussions and used asynchronous communication for everything else. Modern tools (Slack, Jira, Zoom, etc.) and global HR platforms have made it straightforward to manage an international team. In short, cultural and logistical challenges are very surmountable with intentional management, and the payoff of a productive, motivated global team is well worth it. A Supportive Tech Ecosystem in Vietnam Another reason Vietnam is such an effective growth lever for startups is the broader tech ecosystem and support structure in the country. This isn’t a case of isolating a few developers in an outsourcing shop; when you engage with Vietnam, you tap into a vibrant and growing tech scene. Vietnam’s startup ecosystem, virtually non-existent a decade ago, is now one of the fastest-growing in Southeast Asia. The Vietnamese government, for its part, actively encourages tech innovation. There are government-backed incubators, innovation labs, and regular tech events. Initiatives like the National Innovation Center and various startup grant programs provide resources and mentoring to new companies. Just as importantly, the government has made moves to improve the business climate for tech firms – simplifying certain regulations, offering tax incentives for tech investments, and investing in digital infrastructure. All of these factors – successful startups, government support, educational focus – contribute to an ecosystem where innovation thrives. When you hire an engineer in Vietnam, there's a good chance they're plugged into a community of developers, attend meetups or conferences, and follow the latest tech trends. They’re not operating in a vacuum. As a startup founder leveraging Vietnam, you benefit from this ecosystem indirectly: your team can draw on local tech communities for ideas and support, and you can even find local partners or advisors who understand your domain. In short, Vietnam offers not just talent in isolation, but a whole environment conducive to building and scaling technology. Embracing a Borderless Future Tapping into Vietnam’s tech talent has fundamentally shaped how we scale our business. What began as a tactical move to fill a talent gap has evolved into a core part of our strategy. Beyond just the cost savings or quick hiring, we’ve gained a foothold in a vibrant market full of energy and ideas. Vietnam became more than an outsourcing destination; it became a source of innovation and resilience for our company. The experience has reinforced a broader lesson: great talent knows no borders. In our case, embracing a Vietnam-based team did more than just fill engineering roles; it brought in fresh perspectives, diverse problem-solving approaches, and an incredible work ethic that lifted the whole company’s performance. As you consider how to scale your startup, don’t overlook emerging talent pools like Vietnam. The world is big, and innovation is happening everywhere. Vietnam just happens to be a place right now where innovation and opportunity meet in a special way – a young, eager workforce; a supportive ecosystem; and a track record of delivering on global projects. That’s a combination that any global-minded startup can leverage. Vietnam has indeed become a secret weapon for those who dare to venture beyond the usual suspects in tech hiring, and it’s paying off in product velocity and competitive advantage. Finally, remember that leveraging this “secret weapon” isn’t just about hiring cheaper developers – it’s about building bridges. If you’re looking to scale your startup and overcome the talent crunch, it might be time to expand your horizons – you may just find, as I did, a wellspring of growth where you least expected it. If you’re curious to learn more or explore how Vietnam’s tech talent could fit into your growth strategy, feel free to connect with me on LinkedIn. I’m always happy to swap stories and help fellow founders discover this not-so-secret weapon for scaling up.** LinkedIn LinkedIn

Intel

Samsung

Slack

AI Co-Pilots in Software Development: Boosting Startup Coding Productivity

Global Tech Startups Are Looking to Vietnam - Here’s Why

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

AI Co-Pilots in Software Development: Boosting Startup Coding Productivity

AI Co-Pilots in Software Development: Boosting Startup Coding Productivity

Closing the Feedback Loop: Building AI That Learns from Its Users

The Creditcoin Network Creates Trust in On-Chain Credit Systems. Here’s How.

105 Stories To Learn About Outsourcing

10+ Reasons Why Outsourcing Software Development Fails

AI Co-Pilots in Software Development: Boosting Startup Coding Productivity

AI Co-Pilots in Software Development: Boosting Startup Coding Productivity

Closing the Feedback Loop: Building AI That Learns from Its Users

The Creditcoin Network Creates Trust in On-Chain Credit Systems. Here’s How.

105 Stories To Learn About Outsourcing

10+ Reasons Why Outsourcing Software Development Fails

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps