Running a Tech Business in Vietnam: The Honest Pros and Cons from a UX Studio

Every market has its own rhythm. Vietnam’s just happens to be louder, faster, and more unpredictable than most, in ways that will either energize you or exhaust you, sometimes both on the same day. We run a UX design and tech studio in Ho Chi Minh City, and after years of running a tech business in Vietnam firsthand, we have built up a picture of what working here actually looks like beyond the headlines and the hype.

So if you are considering launching or growing a tech business in Vietnam, this is the honest breakdown: what genuinely works in your favor, and what will demand more from you than you probably expect.

The Advantages

1. A Government That Is Actively Opening Doors

Vietnam’s political environment is stable, and right now, the government is sending clear signals that it wants technology businesses, local and foreign, to grow here. Politburo Resolution No. 57-NQ/TW, issued in December 2024, sets a confirmed target for the digital economy to reach at least 30% of GDP by 2030. That is not just a number. It means policy support, investment incentives, and a regulatory direction that is increasingly friendly to FDI in tech, AI, fintech, and digital services.

As we covered in our earlier post Vietnam Is Calling: Here’s Why You Should Answer, Vietnam’s digital economy already stands at roughly 14% of GDP, growing at approximately 20% per year, about three times the pace of the broader economy. That momentum is being reinforced by legislation, infrastructure spending, and a government that is clearly betting on innovation as a core growth engine. For a small tech business, operating inside a market with that kind of tailwind matters a lot.

2. Young, Tech-Savvy, and Motivated Talent

Vietnam is in its “golden population” phase, with around 67% of the population aged between 15 and 64. Over 58% of the workforce is under 35, and the median age sits at about 32. In tech specifically, the picture is even more dynamic: more than 57,000 IT graduates enter the job market every year, and roughly 56% of tech professionals are between 20 and 29 years old.

This is a significant advantage for any small studio. You have access to a talent pool that is young, digitally fluent, and increasingly experienced with international clients. Vietnam ranks among the top 10 countries globally for developer capabilities, and Statista projected IT outsourcing revenue here to approach $700 million in 2024 and surpass $1.2 billion by 2029. The vibe of working in this environment, sharp colleagues, a genuine hunger to grow, and a culture that moves fast, is one of the things we appreciate most about building here.

3. People Are Open, and Networks Form Quickly

One of the things that surprised us early on was how open Vietnamese professionals are to new ideas. There is a real curiosity here, a willingness to engage with different perspectives and ways of working. That openness makes it easier to collaborate, pitch, and build trust than you might expect in a market you are entering from the outside.

Community matters more in Vietnam than in many places. Relationships open doors that formal channels can not. The more time you invest in meeting people across different cities and industries, the more useful your network becomes, whether you need a referral, a local expert, or someone who has already solved a problem you are just encountering. Show up, be consistent, and you will find this a genuinely warm environment for building a business in Vietnam.

4. Location Is a Real Strategic Asset

Ho Chi Minh City sits at a geographic intersection that is easy to underestimate. You are a short flight from Singapore, Bangkok, Kuala Lumpur, and Hong Kong. East Asian markets, Japan, South Korea, China, are within a few hours. Australia is accessible. The ASEAN region is on your doorstep.

For a small tech business serving regional clients, or looking to expand across Southeast Asia, that connectivity is genuinely useful. Time zone alignment with most of the region, combined with relatively low operational costs, makes Vietnam a practical base for teams that want to stay close to a broad client geography without the overhead of markets like Singapore.

5. Real Opportunity, With Room for People Who Like a Challenge

Compared to much of the world right now, Vietnam is stable. The economy is growing, the political environment is predictable, and the direction of travel over the next five to ten years looks positive. Vietnam is not perfect, there are plenty of areas still developing, but that is also what creates opportunities. Markets without gaps do not need builders.

If you are the kind of person who would rather solve genuine problems than compete in a saturated space, Vietnam rewards that mindset. The challenges here are real, but they tend to be the kind of challenges that build something rather than just drain energy. Come in with realistic expectations, and you will find more room to make an impact as a startup or small business in Vietnam than in most markets at a comparable stage.

The Disadvantages

1. The Tech and AI Ecosystem Is Still Early Stage

Vietnam has a solid foundation of IT and tech resources, and the talent pool for software development and digital services is genuinely strong. But when it comes to AI specifically, the picture is more limited. Good AI engineers are not easy to find here. The supply is small, demand is growing fast, and the gap between the two is real. If your business depends on building or scaling AI-driven products locally, expect to work harder to find the right people than you would in more mature markets.

The broader business ecosystem reflects this early-stage reality. Outside a handful of large players, Vietnam’s tech and AI ecosystem is still finding its footing. Domestic venture capital is limited, fewer than 40 local VC funds exist, and most investment still comes from foreign players. Early-stage funding in particular has tightened recently, which means small studios and startups often cannot rely on local capital to grow. Enterprise software culture is still forming, and the tools, services, and professional networks that make day-to-day operations smoother are still catching up. That is not a reason to avoid Vietnam, but it is something to plan around honestly.

2. Language Is a Real Barrier, Especially on the Administrative Side

Vietnamese is the language of government and official process. All legal documents, tax filings, and regulatory correspondence are in Vietnamese, and while English fluency is growing in major cities and in the tech sector, it drops off significantly when you move into local government interactions or more traditional industries.

For foreigners doing business in Vietnam, this creates a real information gap. You may not hear about regulatory updates that affect your business. You may misread a compliance requirement. You may spend significantly more time resolving an issue that a Vietnamese speaker would handle in a phone call. The best mitigation is not to try to do everything yourself. It is to build a community of people who can bridge that gap with you. Local partners, accountants who communicate in English, peer networks of other business owners: these are not optional extras, they are how you stay informed and functional.

3. Revenue Expectations Need to Match the Market

Vietnam is affordable to live in, but it is also a lower-average-income market. If your revenue comes primarily from local clients, you should expect local pricing, and local pricing is not Western pricing. Unless you are billing international clients or have a product with global reach, do not expect to replicate the income levels of running a comparable business in the US, UK, or Australia.

The strategic positioning that works best for small tech businesses here is one of two things: keep costs low in Vietnam while earning in higher-value markets abroad, or build for the local market with patient, long-term thinking as the economy continues to rise. Both approaches can work. What does not tend to work is projecting Western revenue expectations onto a local client base. Go in clear-eyed, and the financial picture is actually quite good. Go in with the wrong assumptions, and you will feel it quickly.

4. Regulation, Grey Areas, and Admin Weight Are Real

This is the one we want to be most honest about, because it catches almost everyone off guard. Vietnam’s regulatory environment is not hostile, but it is heavy and fast-moving. Tax rules change, new laws pass regularly, and official documentation is almost entirely in Vietnamese, which means key information often does not reach foreign business owners until someone translates it.

The paperwork process is heavier than most small business owners expect, and it does not slow down as you grow. We covered the full picture in our post Accounting and Legal in Vietnam: What Small Business Owners Really Need to Know, worth a read before you start.

The National Assembly passed a new Corporate Income Tax Law and a new Law on Tax Administration in 2025, plus landmark legislation on the digital economy and AI, changes that directly affect UX and tech studios. Staying on top of this is not optional. It requires an experienced local accountant, regular engagement with your compliance situation, and ideally a professional network you can cross-reference with.

Vietnam is still writing its next chapter, and that is exactly what makes it interesting. The gaps in the market are real. The pace of change is real. And the reward for showing up prepared and staying consistent is real too.

Know the rules, even the unwritten ones. Find your people early. And when the system pushes back, because it will, lean on the community and the specialists you have built around you. That is what makes the difference between surviving here and actually building something worth staying for.

Sources:
Politburo Resolution No. 57-NQ/TW, December 2024 · Vietnam Ministry of Science and Technology · TopDev Vietnam IT Market Report 2023 · Statista / TopDev IT Outsourcing Revenue Vietnam ·