A Detailed Analysis of the Vietnam IT Workforce: Why HCMC and Hanoi Still Dominate Scaling in 2025
- Kien Nguyen
- 2 hours ago
- 4 min read
A deep dive into the Vietnam IT workforce. We analyze the ~340k HCMC, ~200k Hanoi, and ~35k Da Nang talent pools. Learn why Da Nang's "mid-level heavy" structure struggles with scaling despite government incentives.
1. The Difference Between IT Workforce Reality and Incentives
Vietnam has solidified its position as a premier location for international technology investment. Building huge, globally competitive engineering teams is a dependable service for companies from the US, Japan, Korea, and Europe. The Vietnamese government is increasingly emphasizing Da Nang as a developing technological hub, even though Ho Chi Minh City (HCMC) and Hanoi have long been the unchallenged leaders.
Da Nang provides a strong package of incentives, including startup incubation, corporate tax breaks, and substantial infrastructural assistance, to entice investment.
Though they demonstrate a long-term commitment, these admirable measures do not address the pressing issue facing growing businesses: the city's IT staff is still insufficient to satisfy demand from across the world. Based on the JTI Q4:2025 Mini Guide, this research examines the specifics of the Vietnam IT workforce and explains why Hanoi and HCMC continue to be the most dependable and dominating options for scalability.
2. A Sharp Difference in the Size of the Talent Pool
The sheer size of the talent pool is the most important scaling element. The information shows a startling disparity among the three major cities in Vietnam:
Ho Chi Minh City (HCMC): ~340,000 IT professionals
Hanoi: ~200,000 IT professionals
Da Nang: ~35,000 IT professionals
Just 10% of HCMC's IT skill pool is found in Da Nang. The fundamental issue that strategic incentives by themselves cannot resolve in the near future is this numerical disparity.
3. Vietnam IT Workforce Profile 1: Ho Chi Minh City - The Balanced Powerhouse
Talent Pool: around 340,000 | Structure: Equitable Allocation
The ecology of HCMC, Vietnam's most vibrant economic hub, is based on both foreign investment and private entrepreneurship. This setting naturally encourages creativity, rivalry, and quick adaptation.
Talent Supply: The high concentration of technical and university institutions in HCMC consistently produces a robust and varied pool of IT graduates.
Talent Magnet: Numerous significant tech enterprises and global corporations have their headquarters in the city. This serves as a strong magnet, drawing top-tier experts from around Vietnam.
As a result, this ecosystem increases the bar for managerial professionalism and engineering excellence. Its broad, steady labor pyramid serves as a visual representation of the balanced distribution it guarantees throughout junior, mid, and senior levels. The city excels in high-demand industries, including product development, cloud computing, and artificial intelligence.
Strategic Implication: When it comes to scaling teams of any size, from tiny to extremely large, HCMC is the most dependable option for preserving leadership depth and quality.
4. Vietnam IT Workforce Profile 2: Hanoi - The Tiered & Disciplined Center
Talent Pool: ~200,000 | Structure: Tiered Structure
Hanoi, the capital of Vietnam, serves as both the administrative and educational hub of the nation and is home to several prestigious technological institutes and research and development facilities.
Talent Structure: A "Tiered Structure" is produced by this foundation. With a sizable junior base, a considerable mid-level component, and a smaller senior tier, it is hierarchical.
Ecosystem: In Hanoi, corporate or government-related settings are frequently where talent develops. This indicates that procedures are organized, but it also slows down innovation.
The outcome is that Hanoi is a very dependable supply of technically disciplined people, even if it is not as vibrant or product-driven as HCMC. It excels at hardware solutions, embedded technologies, and enterprise systems.
Strategic Implication: For long-term, enterprise-scale, compliance-focused projects that demand stability and technical rigor, Hanoi is the best option.
5. Vietnam IT Workforce Profile 3: Da Nang - The "Mid-level Heavy" Niche
Talent Pool: ~35,000 | Structure: Mid-level Heavy
Da Nang is recognized for its high quality of life, but this defines its workforce limitations.
The workforce: "mid-level concentrated" in terms of talent structure. This isn't because it generates a lot of graduates; in fact, compared to HCMC or Hanoi, its graduation numbers are far lower. Rather, it's because engineers who have studied or worked elsewhere come back to Da Nang for lifestyle or family reasons.
Seniority Gap: The fact that the majority of businesses in Da Nang function as branch offices rather than headquarters presents the biggest obstacle. This significantly reduces senior engineers' and managers' chances to advance or take the lead on significant projects.
As a result, the professional environment is now less competitive and unsuitable for developing top talent. Although there is a steady supply of mid-level engineers in the city, there is a dearth of leadership, specialty, and English competence.
Strategic Implication: Da Nang is perfect for small teams or outsourcing. It works well for small pilot teams of five to fifteen engineers, but it has serious problems scaling to fifty or more.
6. Final Verdict & Recommendation
Da Nang is a great place to live and run small IT businesses, but it isn't yet prepared to house major, internationally competitive offshore centers.
It is obvious what the strategic advice is for clients in other countries:
Core Scaling: Give Hanoi and Ho Chi Minh City priority when assembling sizable technical teams. These two cities continue to be the only dependable locations for creating sizable, competitive teams that need scalability and depth of skill.
Niche Functions: Take into account Da Nang as an additional site for satellite R&D laboratories, pilot projects, or particular, small-scale outsourced tasks.
Navigate the Vietnam IT Workforce with JT1
Making the best strategic investment requires an understanding of this intricate and diverse world. A one-size-fits-all recruiting approach will not work in Da Nang due to the disparities between its specialized skill pool, Hanoi's rigorous structure, and HCMC's balanced dynamism.
JT1, an IT recruitment firm, may assist in this situation. Whether you are rapidly expanding in Ho Chi Minh City, establishing an enterprise team in Hanoi, or starting a pilot lab in Da Nang, our services, which include Headhunting, Payroll & Employer of Record (EOR), Temporary & Permanent Staffing, are made to assist you in building your team.
