50 Years On: Vietnam’s Remarkable Journey from Reunification to Tech Outsourcing Powerhouse

Jakub Wachocki
May 2, 2025
5 min read

Updated: Aug 23, 2025

Fifty years. Half a century since the war ended on April 30th, 1975—a day etched into history as Reunification Day here in Vietnam. Having travelled to Asia for the last 9 years, and lived in for the past 6,5years, including five years in vibrant Singapore, I've now spent the past year immersed in Vietnam’s dynamic ecosystem. The bustling streets filled with motorbikes, gleaming skyscrapers, and trendy cafés reflect an incredible transformation from the images of half a century ago.

Through my work at vitX, briding the gap between the international clients and hundreds of vetted Vietnamese IT service vendors, I am experiencing firsthand Vietnam's evolution into a global technology and outsourcing powerhouse. This anniversary isn't just about looking back; it's a testament to Vietnam’s impressive rise and its strategic importance for Vietnam’s impressive rise and its strategic importance for global technology services investment and acquisitions.

From Ashes to Ambition: Đổi Mới and Economic Miracle

The years following 1975 were undeniably challenging. Rebuilding a war-torn nation, integrating disparate economic systems, and overcoming international isolation required monumental effort. A turning point arrived in 1986 with Đổi Mới, Vietnam’s market-oriented economic reforms. These reforms sparked entrepreneurial activity, dismantled state monopolies, and integrated Vietnam into global markets.

7% average GDP growth

1.26 M IT pros

his transformation propelled Vietnam to decades of remarkable growth, averaging nearly 7% annual GDP increases over the past thirty years—a feat recognized by global institutions like the World Bank. The resilience, vision, and determination that made this possible are evident daily in the Vietnamese colleagues and partners I interact with.

Vietnam’s Digital Revolution

Vietnam’s rise in the digital landscape is astonishing. The digital economy, expanding at over 20% annually, is the fastest-growing in Southeast Asia and projected to accelerate even further (31% between 2022 and 2025). By 2024, Vietnam’s ICT sector reached nearly US$166 billion in revenue, driven by government support, substantial infrastructure investments, and a dynamic young workforce. The sector employs over 1.26 million professionals and is home to nearly 74,000 digital technology enterprises, 10,000 of them are focusing on IT/tech services —an increase of 10.1% from the previous year

Vietnam’s digital economy grew 31% between 2022 and 2025 — fastest in Southeast Asia

The energy here is palpable. Annually, universities produce almost a hundred thousand of IT graduates, eager to contribute. Walking through Hanoi’s business districts or Ho Chi Minh City's tech hubs, you see a vibrant ecosystem that includes global players like Samsung, Intel, and LG. Vietnam's rapid adoption of technologies like AI and cloud computing is driven by an ambition not just to keep pace but to lead.

This explosive growth is fueled by a confluence of factors: strong government commitment through initiatives like the National Digital Transformation Program, significant investments in digital infrastructure (aiming for nationwide 5G coverage and universal broadband access), and, crucially, a young, dynamic, and increasingly tech-savvy population.

It's this ambition and talent that makes working with the tech ecosystem here so exciting.

Vietnam as a Premier Global Outsourcing Destination

Vietnam’s attractiveness as an IT outsourcing destination stems from its competitive costs, abundant skilled talent, political stability, and supportive government policies. Ho Chi Minh City regularly ranks among the world's top outsourcing destinations. There are now over 650,000 IT engineers in Vietnam (up from 530,000 in 2021), and the median age of the workforce is 32.5 years

ICT revenues reached US$166 billion by 2024.

1.26 million IT professionals across ~74,000 digital enterprises.

... of which 10,000+ focused on IT/tech services

10.1% YoY increase in number of IT enterprises

Initially attracted by cost savings (up to 90% compared to the US rates, according to CIO magazine, and often more competitive than other Asian hubs), global companies now stay and expand due to Vietnam’s increasing reliability and high quality of work. At vitX, we collaborate with hundreds of vendors specializing in diverse IT services—from software development to ERP services—demonstrating Vietnam’s evolving capability to handle sophisticated, high-value projects.

We see this trend reflected in the sheer number of international firms, from tech giants to specialized SMEs, setting up development centers or partnering with Vietnamese outsourcing providers.

Strategic Partnerships: Japan and South Korea

Japanese and Korean companies have significantly invested in Vietnam, particularly in IT services. South Korea alone invested over $92 billion by early 2025, seeing Vietnam as essential for their global operations. Similarly, facing severe IT talent shortages, Japan increasingly relies on Vietnam’s skilled workforce. Over 400 Vietnamese firms now collaborate with Japanese companies, moving beyond simple outsourcing to engage in complex R&D, design, and the implementation of cutting-edge technologies like AI and blockchain. Japanese firms, in particular, appreciate the Vietnamese engineers’ “ppalli ppalli” (swift-swift) mindset, meeting their demanding quality and security standards.

Record FDI and Thriving M&A Market

Foreign direct investment surged to $36.6 billion in 2023, marking a significant increase and fueling a vibrant M&A environment- in 2023 registered foreign investment jumped 32%. With global companies shifting operations from China, Vietnam’s market is ripe for strategic acquisitions. At vitX, our "Managed Acquisition" service helps international buyers identify optimal IT service companies in Vietnam, aligning with their strategic goals and ensuring seamless transitions.

NVIDIA picks Vietnam after California and Taiwan

NVIDIA's decision to establish its third global AI Research and Development (R&D) center in Vietnam—following its flagship facilities in Santa Clara, California, and Taiwan—marks a significant milestone underscoring Vietnam's growing prominence in the global AI landscape and its potential as a hub for technological innovation. The new Vietnam R&D center aims to leverage the country's robust pool of STEM talent and its supportive governmental policies to accelerate AI adoption across various sectors.

The establishment of the Vietnam center signifies a deliberate effort to tap into emerging markets with high growth potential and to build resilient, globally distributed innovation networks.

Vietnam’s Future: A Bright Tech Horizon

The Vietnamese government continues emphasizing digital transformation, artificial intelligence, and green technology. Plans for advanced semiconductor manufacturing highlight Vietnam’s determination to climb the global tech value chain.

Fifty years post-reunification, Vietnam stands at the brink of another transformation—poised to solidify its role as a leading technology hub, global outsourcing center, and strategic M&A destination. Its journey offers profound lessons in resilience, innovation, and economic pragmatism for emerging economies.

Reflecting on an Extraordinary Journey

Reflecting on Vietnam’s incredible transformation, optimism and potential stand out vividly. The journey from war recovery to global tech powerhouse is extraordinary. Its trajectory reminds me of my birth country Poland, now the fastest growing economy in Europe, and home to the best software developers in the world. My past year in Vietnam, building upon five years in Singapore and extensive travels across Asia, has reinforced my admiration for this country's boundless energy and ambition.

Working on vitX, connecting global businesses to Vietnam’s extensive network of IT service providers, I witness daily Vietnam’s capacity for strategic innovation and high-quality execution. This isn’t merely about cost-effective labor; it’s about engaging deeply skilled teams capable of significant technological advancement.

The trust placed in Vietnam by sophisticated markets such as Japan and Korea—and increasingly Europe and North America—underscores its global significance. The coming decades promise further growth and innovation, driven by ongoing investments in education, infrastructure, and technology.

The spirit of reunification continues—economically, technologically, and culturally—guiding Vietnam towards a prosperous, globally integrated future.