Vietnam could defy tech layoff trend to at least 2024

vietnam tech
Image by Ink Drop | Bigstockphoto

Recent news of GoTo’s mass layoffs and other tech companies around the world has made many worry about their future in the industry. However, for Vietnam, it’s a different story altogether.

As the country’s post-pandemic economy recovers, Vietnam’s labor market has also maintained its momentum of recovery. This is good news for programmers and other tech professionals, according to IT recruitment platform TopDev’s Tech Hiring 2022.

TopDev revealed that salaries and bonuses continue to increase, but Vietnam still has a severe shortage of programmers and engineers. Around 150,000 to 195,000 programmers are expected to be hired in the next two years, and this shortfall comes from the discrepancy between programmer qualifications and business requirements.

A continuous need for programmers and engineers is expected until at least 2024. That’s great news for the 57,000 students reported to be specializing in information technology. However, 65% of this number are still not suitable for the industry, TopDev reports, and this gap is expected to remain high until 2024.

Roles in demand

Specifically, HR respondents identified roles that are in increasing demand and have been difficult to fill: back-end developers (56.7%), full-stack developers (53.2%), and front-end developers (38.1%). DevOps engineers, cloud or cybersecurity professionals, data/AI/ML practitioners, database professionals, network/system engineers, and bridge system engineers, (BrSE) are also in high demand.

When it comes to salaries, the report states that the salary difference between experienced (5+ years) and mid- to senior-level programmers is mainly based on location and business responsibility.

Fresher (newbie) salaries range from $350 to less than $1,190 per month, while directors or higher-level positions have a salary of at least $2,300 per month. Technical managers will typically have a higher salary than directed business directors.

According to the report, these salaries continue to grow amid rapid market transformation and disruption.

Vietnam as a growing IT talent hub

TopDev says that Vietnam is not only an excellent location to outsource software development, but also a nation with plenty of skilled and capable human resources. With a high potential for market and economic growth, the report says that there lies a unique opportunity to create innovative products domestically.

Meanwhile, with the shift to hybrid work and the growing share of Gen Z and millennials in the workforce, companies are faced with the challenge of creating the right recruitment initiatives to attract and retain talented professionals, the report highlights.

Park JongHo, CEO of TopDev, says that while Vietnam continues to reap the benefits of fast adaptation and digital transformation, there are also new challenges in the labor market that employers need to consider. These include issues related to working conditions, mental health needs and work-life balance.

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