Vietnam IT Services Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Vietnam IT Services Market Trends and Insights

Digital-Transformation Roadmap 2025

The government’s roadmap stipulates concrete digitization milestones for all ministries and provincial agencies, creating a multi-year pipeline of e-government, cyber-security, and citizen-service contracts. Budget allocations for system renewal and process automation prioritize domestic providers conversant with local procurement, boosting predictable revenue flows. Private enterprises are compelled to modernize interfaces to comply with new government APIs, further broadening demand. Resolution 57-NQ/TW’s push for AI, blockchain, and IoT widens service scope, while updated procurement rules shorten award cycles. Together, these elements fortify the Vietnam IT services market. ^{[1]FPT Information System, “Vietnam E-Government Procurement System Wins ASOCIO Award,” fptis.com}

Rising Near-shore Demand from Japan and the US

Vietnam’s labor-cost advantage—engineers earn roughly one-tenth of global averages—combined with time-zone overlap and cultural affinity, makes the country a preferred near-shore hub. Providers such as FPT secured USD 1.3 billion in new contracts in 2024, underlining sustained appetite. Multinationals set up captive centers, reflecting long-term strategy rather than opportunistic cost cuts. Supply-chain diversification away from single-country dependencies accelerates this inflow, lifting the Vietnam IT services market well above regional averages. ^{[2]FPT Software, “FPT’s Global IT Services Signed Revenue Surpassed USD 1.3B,” fptsoftware.com}

Accelerated Domestic Cloud Adoption

Post-pandemic continuity planning pushed enterprises toward cloud-first architectures. Decree 53/2022/ND-CP requires select data classes to stay onshore for 24 months, giving local providers a structural advantage and stimulating the build-out of national cloud zones. Healthcare digitization and digital banking further stretch demand for migration and hybrid-cloud management. Only 6% of hospitals run electronic medical records today, leaving ample headroom for growth.

Data-Center Localization Mandates

Localization rules drive investments in industrial-zone data centers. Domestic carriers deploy hyperscale facilities, creating an indigenous cloud backbone. Providers gain new revenue from consulting on in-country workload placement, compliance, and managed hosting. The mandates also deter overseas competitors lacking Vietnamese footprints, insulating the Vietnam IT services market from pure-play global hyperscalers.

Talent Shortages and Wage Inflation

Vietnam produced 530,000 programmers by 2024, yet demand continues to outstrip supply, especially for senior architects and emerging-tech specialists. Salaries rise 15–20% annually, compressing provider margins and eroding the headline cost advantage that anchors the Vietnam IT services market. Employers channel resources into training and retention, but poaching remains rampant, creating talent circulation rather than net capacity growth. Government semiconductor-talent programs offer limited near-term relief.

Fragmented Data-Privacy Rules

The interim Personal Data Protection Decree obliges firms to follow strict—but still evolving—safeguard protocols. Sector-specific rules for finance, healthcare, and telecom pile extra layers of oversight. Providers incur higher compliance costs for audits, documentation, and localized infrastructure, a hurdle for smaller vendors courting global enterprises. ^{[3]United Nations Development Programme, “Development and Experimentation and Transfer of an AI-Powered Digital Tool,” undp.org}

Segment Analysis

By Service Type: ITO Dominance Drives Market Foundation

IT Outsourcing contributed 39.6% to the Vietnam IT services market size in 2024, underscoring its role as the market’s cornerstone. The segment leverages large pools of mid-level developers to deliver application maintenance and product engineering for Japanese, U.S., and Korean clients. Wage inflation nudges providers toward productivity tools, agile methodologies, and domain specialization to sustain margins. Digital transformation deals are increasingly bundled with legacy-support extensions, allowing incumbents to upsell newer services.

Cloud and Platform Services, though smaller, are the fastest risers with a 12.1% CAGR to 2030. Data-center localization fuels domestic IaaS demand, while multi-cloud orchestration and containerization create advanced consulting opportunities. Managed Security Services follows close behind, boosted by a 65% jump in cyber-incidents during 2023 and mandatory local threat-monitoring for sensitive sectors. IT Consulting and Implementation, once ancillary, now commands premium rates as enterprises seek roadmap expertise, while Business Process Outsourcing remains a niche focused on finance-and-accounting tasks for English-speaking clients. Altogether, shifting service-mix dynamics make higher-value work the next growth frontier for the Vietnam IT services market.

Note: Segment shares of all individual segments available upon report purchase

By End-User Enterprise Size: SME Acceleration Reshapes Demand

Large enterprises controlled 68.3% of the Vietnam IT services market size in 2024, reflecting their deeper IT budgets and complex hybrid infrastructure needs. Multinationals and leading Vietnamese conglomerates award multi-year master-service agreements, anchoring provider revenue predictability. These clients segment projects by specialty, encouraging best-of-breed supplier ecosystems.

Small and medium enterprises, backed by the 2024 SME Tech-Loan Fund, display a 13% CAGR outlook through 2030. Affordable financing compresses payback periods on ERP, e-commerce, and IoT investments, while packaged SaaS models suit SMEs’ lean staffing. Providers run dedicated support desks in tech parks, reducing service-delivery costs and improving churn economics. The result is a structural broadening of the Vietnam IT services market, diversifying revenue away from the traditional large-enterprise core.

By End-User Vertical: BFSI Leadership Meets Healthcare Innovation

BFSI contributed 26.88% of the Vietnam IT services market share in 2024, anchored by core-bank modernization and digital-banking rollouts under the State Bank’s sandbox. Implementation of AI-driven risk scoring, open-API gateways, and real-time fraud analytics secure steady consulting and platform work for service vendors.

Healthcare and life sciences, expanding at a 12.4% CAGR, represent the green-field prize. With only 6% of hospitals running electronic medical records, providers face sizable volumes in telemedicine platforms, imaging data lakes, and clinical-decision support. Government subsidies for digital health accelerate procurement, ensuring that healthcare overtakes manufacturing as the next demand hotspot within the Vietnam IT services market.

Manufacturing retains high spend due to Industry 4.0 ambitions, embedding IoT, SCADA upgrades, and supply-chain analytics into export-oriented factories. Retail/consumer goods ramp omnichannel stacks, while government remains a reliable adopter through e-service mandates. Telecom, energy, and logistics segment spending rounds out a diversified vertical mix that stabilizes overall growth.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Ho Chi Minh City and Hanoi combined generated roughly three-quarters of the Vietnam IT services market in 2024, a testament to their mature tech ecosystems, skilled labor pools, and access to foreign enterprises. Ho Chi Minh City retains the commercial lion’s share, with 38% of provider headcount and many Japanese client liaison offices. Hanoi capitalizes on proximity to central ministries, catalyzing public-sector digitization and housing national champions such as Viettel Solutions.

Da Nang rises as a cost-efficient secondary hub, hosting delivery centers for mid-tier firms that tap graduates from local universities. Industrial provinces like Binh Duong and Dong Nai nurture manufacturing-centric IT opportunities, enabling on-site smart-factory integration within sprawling industrial parks. Northern border provinces leverage China-linked supply-chain flows, demanding logistics and customs-automation platforms, while coastal Hai Phong and Can Tho pioneer maritime-logistics and agri-tech applications, respectively.

International connectivity underpins geographic service delivery. Five subsea cables tie Vietnam to global internet routes, but recurrent outages emphasize redundancy gaps. Planned Viettel-backed links to Singapore and Japan aim to mitigate latency and uptime risk, enhancing confidence among overseas clients of the Vietnam IT services market. Growing data-center clusters in Ho Chi Minh City’s Thu Duc City and Hanoi’s Hoa Lac Hi-Tech Park further solidify these metros as cloud inlet points, though distributed micro-data centers in provincial zones are gaining traction to cut edge-processing latency.