Page 7 - JT1-SalaryReport-2024

Besides, the IT industry in Vietnam used to be dominated by large enterprises, which accounted for 0.3% of the
businesses and 58.25% of the revenue. They had high expectations for their IT workers regarding technical and
behavioral competencies.

The recent economic downturn has created a positive feedback loop for the IT talent market in Vietnam, as it has
necessitated them to become more competitive and attractive to employers. In 2023, Vietnamese IT professionals have
upgraded their technical and business skills, gained more practical experience, and become more adaptable and
multitask-oriented to work more effectively.® This boosts their chance of meeting employers’ evolving requirements.

VIETNAM, INDONESIA AND THE PHILIPPINES ARE MOST
LIKELY TO ATTRACT MORE INVESTORS OVER THE LONGER-TERM
Moreover, the IT market has changed in recent years, with the emergence of Vietnamese unicorn start-ups that create
IT products and overseas product IT companies that establish their teams in Vietnam. This supports the balance of
outsourcing and long-term product development opportunities for Vietnamese IT professionals. With different
expectations and cultures than the traditional IT outsourcing companies, these influential players have created more
opportunities and challenges for Vietnamese IT professionals. They require IT professionals to adapt and learn new skills
and mindsets, such as product thinking, agile methodology, and user-centric design.
By the end of 2023, large-scale IT outsourcing and product development firms have seen a significant increase in the
number of Vietnamese IT talent who meet their standards. The mismatch in the past has been reduced by the
difficulties of 2023 (i.e., lower compensation and advanced skill sets) that have prompted professionals to upgrade
themselves.
By aligning the IT talent supply and demand, both employers and job seekers have gained substantial advantages.
Employers have reduced their hiring costs and risks, while job seekers have improved their work quality and
satisfaction. However, this also means that the tech market has become more competitive and dynamic, which
requires IT professionals to constantly update their skills and knowledge to stay relevant and valuable.

"Long-T erm Deal Activity Expectations "Long-T erm Deal Activity Expectations
(2025-2030) for Selected Countries”
(2025-2030) for Selected Countries”

Vietnam, Indonesia and the Philippines are most
likely to attract more investors over the longer-term

Vietnam 83%
Indonesia 73%
Philippines 73%
Singapore 50%
The economic downturn has slowed down the recruitment Thailand 47%
market this year, creating an oversupply of candidates for
limited jobs.§ Businesses need to restructure and adapt to Malaysia 30%
digital transformation and new technologies.¨ Together, Rest of ASEAN 17%
these factors increase the competition and challenges for
job seekers and employers.

When it comes to Vietnam’s IT industry, it previously faced
recruitment challenges due to the gap between the supply Source: Bain, SEA Venture Capital Investors Survey
and demand of IT personnel. According to a 2022 report,
only 30% of IT graduates met the job requirements.©

4 A Strategy for Developing Human Resources in the Digital Era - FPT Digital
5 [Vietnam – a hub of nurturing tech talent] Prospects soar for Vietnam’s tech talents (hanoitimes.vn)

06