As the year draws to a close, the verdict is clear. Strategy and tactics. These are the two essential elements for achieving success in 2024, as recognized by business owners, IT professionals, and the tech sector as a whole.
But how can you master them in a fast-changing IT world? Our Vietnam IT Salary Guide 2024 will show you the latest trends, skills, and predictions for the IT market. Whether you want to grow your career, hire the best talent, or explore new ventures, this guide is your ultimate resource.
1. Global IT Market in 2023: The Good, the Bad, and the Ugly
1.1. The market size and tech spending increase
According to The Business Research Company, the global IT market saw a compound annual growth rate (CAGR) of 8.2%, growing from $8179.48 billion in 2022 to $8852.41 billion in 2023. This market faced trials (e.g., geopolitical conflicts, economic sanctions, and inflation), but still, it didn’t rest And now it has a vision of $11995.97 billion in 2027, at a CAGR of 7.9%.
The growth of the tech market was fueled by an increase in tech spending, which rose by 4.7% to $4.4 trillion. Cloud adoption was the main driver of this increase, as businesses and consumers shifted to online services and platforms. The regions that benefited the most from this trend were the Middle East and Africa (MEA) and Asia-Pacific (APAC), which outpaced the rest of the world in terms of IT market expansion.
1.2. Silicon Valley Bank’s epic fall
The tech industry also faced a major crisis in 2023, when Silicon Valley Bank, the 16th largest bank in the U.S. and a key partner for tech companies, collapsed on March 10.
The bank's failure triggered a liquidity crunch, a spike in interest rates, and a tightening of loan criteria for tech startups. As a result, multiple promising ventures went bankrupt, laid off workers, or scaled back their operations. The tech sector suffered a loss of innovation and competitiveness.
1.3. The tech jobs: A growing demand for digital skills
The demand for technology skills remained high in 2023, as the world became more dependent on digital tools and platforms. Some skills are timeless, while others are constantly evolving.
IT support, network administration, and database administration are the traditional skills that lay the foundation for the digital world. Data science, cybersecurity, and artificial intelligence are the advanced skills that shape the future. Digital fluency is the ability to seamlessly navigate and use digital platforms that span across various domains and contexts.
2. Southeast Asia’s IT Landscape: Lows and Highs
2.1. Growth drivers
Southeast Asia's digital economies were set to reach $218 billion in transactions in 2023, an 11% jump from last year despite global uncertainties. Vietnam led the pack as the fastest-growing digital economy in the region and is expected to maintain this position until 2025.
The region's digital boom is fueled by several factors, including the increased adoption of mobility and IoT solutions, the proliferation of data, and the expanding gig economy. Southeast Asia also had a large pool of "dry power"–cash reserves or liquid assets available for use–that grew to $15.7 billion in 2022, a surge from $12.4 billion in 2021. Yet, to secure the funds they need, businesses must demonstrate how they can turn their vision into a profitable reality.
2.2. Challenges ahead
The waves of layoffs hit the tech sector. For example, in Singapore, job openings in the sector fell from 9200 in July-August 2021 to 8850 in April-May 2022.
The rising cost of capital, the global recession, and the inflation pressures have forced tech companies to seek sustainable growth instead of "burning cash" to acquire market share. They have to restructure and build adaptable workforces to cope with changing consumer preferences. This is also a key message of our Vietnam IT Salary Guide 2024.
2.3. Leading the way in up-skilling
To future-proof their careers, professionals in Southeast Asia were keen to upskill themselves, with 77% planning to invest time in upskilling in 2023, higher than the global average of 74%, according to Great Learning.
Moreover, 84% of Southeast Asian professionals consider upskilling important to future-proof their careers. Meanwhile, the U.S. (64%), the Middle East (66%), and Latin America (76%) saw upskilling as a necessity.
3. Vietnam’s IT Market in 2023: The Best And Worst
Before you explore the Vietnam IT Salary Guide 2024 for actionable insights and tips, let us take you on a brief tour of the country’s tech landscape in 2023.
3.1. A booming market
The ICT sector is one of the key pillars of Vietnam’s economy, contributing to its social development, global integration, and digital transformation. Its market is on a stellar track, with an estimated value of $15.69 billion in 2023, up from $13.72 billion in 2022, according to Global Data.
The market is projected to grow at a CAGR of 17.19%, reaching $30.33 billion by 2027. This translates to $125.05 billion in cumulative revenue opportunities for ICT providers in Vietnam from 2022 to 2027.
Market size (2022)
Market size (2023)
Key IT Solutions
3.2. A hotspot for IT outsourcing
One of the key drivers of the country's ICT market is IT outsourcing, which would account for $0.59 billion in 2023. Vietnam has become a reliable partner for global clients seeking software development, testing, maintenance, and support services, thanks to its competitive cost structure, skilled talent pool, and young and dynamic population. Over 60% of Vietnam's population is under 30 years old, and well-versed in digital technologies. The local software industry leverages this youthful dynamism to foster a culture of innovation and excellence.
Vietnam's tech firms have also carved a niche in new technologies like semiconductor chips, Generative AI, and Blockchain. They have collaborated with leading corporations and technology companies the world over, for instance, Google, Microsoft, IBM, AWS, Airbus, Boeing, Unilever, and Hitachi.
3.3. A fivefold growth in a decade
Vietnam's IT industry has witnessed impressive growth in the past decade, with its revenue increasing fivefold from $34 billion in 2013 to $148 billion in 2023. The number of IT employees has also risen from 440,000 to 1.3 million.
Vietnam's software and IT services industry has not only met the domestic demand but also made a mark on the global IT map. The Vietnam Software and IT Services Association (VINASA) has recognized the top 10 Vietnam Digital Technology Enterprises in 2023, which have showcased inspiring stories of digital transformation and innovation.
3.4. A wave of layoffs
However, not everything is rosy in the country's IT sector. Many tech companies have reduced their recruitment or laid off staff, as they struggle to cope with the changing market conditions. Reportedly, nearly 90% of companies planned to hire less than 50 programmers in 2023, and 79% of companies have cut their recruitment budgets.
Experts have attributed the layoffs to a "purification of personnel" after a period of rapid development. They have urged Vietnamese IT companies to adhere to international standards, especially in coding quality, and to focus on the quality rather than the quantity of projects they undertake, to enhance their global reputation.
4. Explore the Secrets of Success with the Vietnam IT Salary Guide 2024
JT1’s Vietnam IT Salary Guide 2024 is a practical and reliable companion that will help you advance in your profitable growth and career journey, with information collected through surveys and multiple dialogues with insiders, closely aligned with the market context in Vietnam. It is time to dive deep into what worked (the good) and what did not (the bad) and to fine-tune your plans and expectations.
Here is a glimpse of what this guide offers:
4.1. Vietnam IT market landscape
In this report, you will discover the vibrant and resilient IT market in Vietnam, which has overcome global economic challenges and emerged as a hotspot for technology innovation.
You will learn about the influx of global technology giants, the opportunities for local product-centric tech startups, and the gap between the supply and demand of IT talent. Also, get familiar with the concept of multitasking, which is the expansion of job roles to meet the changing market needs and expectations.
In our Vietnam IT Salary Guide 2024, explore the impact of the "layoff" storm on the tech sector, both globally and locally. You’ll see how the tech layoffs have reshaped the hiring landscape, the salary trends, and the career prospects of IT professionals. You’ll also weigh the pros and cons of remote work, hybrid work, and onsite work models for tech businesses and workers.
About the company and business:
You’ll gain insights and guidance for tech businesses to navigate the limited resources and achieve sustainable growth. Find out strategies such as budgeting smarts, meeting demands through multitasking, and engaging in small projects with big impact. Besides, you’ll witness examples of successful companies that have adopted these strategies and thrived in the IT industry.
Let’s uncover the salary dynamics and the career development of IT professionals in a competitive job market.
You’ll identify the factors that influence the salary expectations and the job satisfaction of IT workers. Furthermore, receive advice on how to redefine your potential and enhance your competencies to become more attractive and adaptable to employers.
4.3. Salary Range
Here, you’ll view the salary range for various IT positions and skills in different regions of Vietnam, such as Hanoi, Ho Chi Minh City, hybrid, and staffing. From there, you get to compare the salary levels of IT workers in Vietnam with those in other countries, including the U.S. and Australia.
4.4. Company and Candidate Insights
You’ll obtain valuable insights and recommendations for both tech businesses and professionals to optimize their talent management and career aspirations.
4.5. Forecast and Predict
This section involves anticipating the outlook and trends of the IT industry in 2024.
Our Vietnam IT Salary Guide 2024 expects positive growth for the IT sector, driven by the increasing global software spending and the digital transformation of various businesses and professions. We also suggest ways for tech businesses and professionals to adapt and innovate in the IT industry.