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Vietnam: A Strategic Launchpad for Software Expansion in ASEAN

Dante Bui

July 24, 2025

Vietnam is emerging as a strategic testbed for software companies aiming to expand into ASEAN. With its fast-growing economy, young digital-native population, and cost-effective tech talent, the country offers a unique combination of scalability, affordability, and readiness for digital solutions.

Why Vietnam?

Vietnam has undergone rapid transformation—from one of the world’s poorest nations to a dynamic lower-middle-income economy. Its GDP per capita rose from under $700 in 1986 to nearly $4,500 in 2023. Forecasts predict 6.1% annual growth through 2025, with average household disposable income expected to reach $25,220 by 2028.

This economic momentum is matched by impressive digital adoption:

99.19 million population with 79.1% internet penetration
168.5 million mobile connections (169.8% of the population)
72.7 million active social media users, with TikTok and Facebook leading engagement

This makes Vietnam a fertile ground for testing software products, especially those integrated with social commerce, mobile-first UX, or digital engagement tools.

Cost-Effective, High-Quality Tech Talent

Vietnam also offers one of the most affordable tech labor markets in ASEAN:

Minimum wage: $209/month — lowest in ASEAN-5
Average IT salary: $593/month (vs. $1,320 in Thailand)
Developer salary: ~$910/month

Despite the cost advantage, Vietnam’s developer talent ranks 2nd in APAC (just behind New Zealand) and 22nd globally, reflecting a skilled and competitive IT workforce. With over 50,000 new IT graduates annually, businesses can scale quickly without high upfront costs — making Vietnam ideal for piloting software products before rolling out across the region.

A Gateway to ASEAN Markets

Vietnam is becoming a regional tech hub, supported by foreign investments from giants like Apple, Meta, and Boeing. Infrastructure improvements, modern ports, and increased government support also make it an appealing base for regional operations. Lessons learned in Vietnam—such as pricing models, localization, or marketing channels—are transferable to other ASEAN markets like Thailand, Indonesia, and the Philippines.

E-Commerce & Retail: A High-Growth Use Case

According to a report released by YouNet ECI and YouNet Media in November 2024, Vietnam’s e-commerce market is projected to hit $49.9B by 2028, growing at 35% CAGR. However, challenges like high logistics costs and talent shortages are holding back scalability. This creates strong demand for:

Automated logistics solutions
AI-driven inventory and POS systems
Customer service automation (e.g., chatbots)

Major retailers like VinMart and Saigon Co.op already use AI to optimize inventory and reduce waste, while logistics firms are investing in automated hubs to boost efficiency and reduce costs. There’s a clear opportunity for software companies offering automation, analytics, and smart infrastructure tools.

Vietnam isn’t just a cost-saving destination—it’s a smart market for learning, adapting, and proving your software’s value before expanding into Southeast Asia. With a strong digital foundation, affordable talent, and scalable opportunities, Vietnam is the launchpad ASEAN-focused software companies should be paying close attention to.

Are you looking to expand your software service into ASEAN countries soon?

Vitex can be your all-rounded partner in both market & software development. We’ve been helping companies in the Netherlands and in Europe establish presence in frontier markets, and at the same time scale the functionality of their products. We can support you too! Let’s talk!