Now Vietnam software development business comes to a turning point. By using a recruitment web service, roughly approximate Salary and Pricing of Vietnam Software Development Business. Pessimistic or Realistic, I don't know.

1. Salary and pricing
analysis in Vietnam
Lab. Type development
kura@LFTV 14/10/2019
kura’s feeling: wake up , guys!

2. Summary of this report
- for 2019.
- Very roughly approximated.
- Based on public data only (any specific company’s data are
not included)
- My personal analysis and opinion, not describe corporate
plan or policy (I’m based in HCMC and Tokyo.)
- October is not the golden season for recruitment.
- Just for reference

3. Java 679
.Net 435
C, C++, C# 315
PHP 186
Python 139
Node.js 86
Golang 21
Ruby 16
Java
.Net
C, C++, C#
PHP
Python
Node.js
Golang
Ruby
0 175 350 525 700
Number of Recruitment
* via Vietnamworks, IT-Software category, 10/10/2019
* Golang and Ruby are just for reference(too small)
kura’s feeling: Acceptable

4. Java .Net C, C++, C# PHP Python Node.js Golang Ruby
-500 146 110 90 34 45 9 4 3
500-1,000 173 147 82 52 21 19 2 2
1,000-1,500 269 179 119 87 39 28 5 6
1,500-2,000 257 158 114 73 45 45 10 6
2,000-3,000 164 96 65 35 36 24 9 5
3,000- 50 25 17 9 24 8 4 3
Average Median Mode
Java 1,462 1,000-1,500 1,000-1,500
.Net 1,371 1,000-1,500 1,000-1,500
C, C++, C# 1,372 1,000-1,500 1,000-1,500
PHP 1,403 1,000-1,500 1,000-1,500
Python 1,561 1,500-2,000 1,000-1,500
Node.js 1,628 1,500-2,000 1,500-2,000
Golang 1,816 1,500-2,000 1,500-2,000
Ruby 1,700 1,500-2,000 1,500-2,000
Java
.Net
C, C++, C#
PHP
Python
Node.js
Golang
Ruby
0% 25% 50% 75% 100%
-500 500-1,000 1,000-1,500 1,500-2,000 2,000-3,000 3,000-
Salary Mapping
(USD Gross)
(Number of Recruitment)
* via Vietnamworks, IT-Software category, 10/10/2019
1,440 USD
kura’s feeling: A little bit higher?

5. 300
850
1,400
1,950
2,500
22 23 24 25 26 27 28 29 30 31 32
Age
Salary(USDGross)
Upper
*Job Hopping every 2 years
Normal
*Change company every 2.5 years
Lower
* Never change company
Target from Salary vs Age(experience)
Recruitment Main Target zone(~1,440~) is
around 29 years old with 7 years experience
* start from 400 USD, 22 years old.
* Annual salary growth rate:
- 20%(up to 1,000)
- 10%(up to 2,000)
- 6%(over 2,000)
* Change company: 20% up
Time
Fair zone
kura’s feeling: Acceptable

6. Allocation Cost - Assumption: Number of Staffs
PM etc (5%) Admin(5%) Developer
Total Number Total
Manager
(1/10)
Staff Total working
Stand by
(10% of Total
Dev)
50 3 3 1 2 44 39 5
100 5 5 1 4 90 81 9
200 10 10 1 9 180 162 18
300 15 15 1 14 270 243 27
500 25 25 2 23 450 405 45
1000 50 50 4 46 900 810 90
Salary base
(USD)
5,000 - 3,000 1,000 1,440 1,440 1,440
kura’s feeling: Acceptable

7. Allocation Cost - Assumption: Considered expense
- Salary of non-sales: PM + Admin + Stand by Developer
- Office Rent: 25USD/m2 x 10m2/person
- Income Tax, Insurance: 31.5% vs Total Salary
- Recruiting fee for Replace: Annual Salary x 20%, Turnover: 20%
- Bonus: 1month
- etc: +200USD/person/month (Acquisition cost + party, trip, IT…)
- Ignore Corporate Tax (IT: Free for 4 years, less tax afterward)
- Salary Increase rate: 10%/year
- Total number of employee will not change
kura’s feeling: Acceptable

8. Allocation Cost
1st year 2nd year
2 years
average
Profit Profit Profit
0% 5% 10% 0% 5% 10% 0% 5% 10%
50 2,085 2,258 2,430 2,242 2,430 2,618 2,164 2,344 2,524
100 1,868 2,029 2,191 2,004 2,180 2,356 1,936 2,104 2,273
200 1,850 2,011 2,171 1,984 2,159 2,334 1,917 2,085 2,253
300 1,844 2,005 2,165 1,978 2,153 2,327 1,911 2,079 2,246
500 1,847 2,007 2,167 1,981 2,155 2,330 1,914 2,081 2,249
1,000 1,847 2,007 2,167 1,981 2,155 2,330 1,914 2,081 2,249
Average 1,890 2,053 2,215 2,028 2,205 2,383 1,959 2,129 2,299
(USD)
- Profit is not an actual profit amount. It will be used for some purpose such as to keep quality, to
extend company…
- 21% of allocation cost in table is employee’s income tax and insurance.
It can be said that 1,440 + 1,959 -> 1,851 + 1,548
Low
performance
kura’s feeling: Acceptable

9. Pricing of Developer
Profit: 0％ Proft: 5% Profit: 10%
USD kJPY USD kJPY USD kJPY
Java 3,422 377 3,592 396 3,931 433
.Net 3,331 367 3,500 386 3,840 423
C, C++, C# 3,331 367 3,501 386 3,841 423
PHP 3,363 370 3,532 389 3,872 426
Python 3,587 395 3,757 414 4,097 451
Node.js 3,775 416 3,945 434 4,285 472
Golang 3,775 416 3,945 434 4,285 472
Ruby 3,659 403 3,829 422 4,169 459
Average 3,530 389 3,700 408 4,040 445
kura’s feeling: Acceptable

10. Example of Pricing Table 2019
Role Price(USD) Price(kJPY)
SE 4,000 440
LSE 6,000 660
BSE 6,000 660
Com 5,000 550
QA 4,000 440
Tester 3,000 330
Ref: Salary in Japan
- Median salary of
- New graduate: 210k = 1,900 USD/Month
- Full time staff: 290k = 2,600 USD/Month
- Part Time staff: 230k = 2,100 USD/Month
kura’s feeling: Acceptable

11. Ref: Cheaper or not
2019 2020 2021 2022 2023 2024 2025
SE 4,000 4,400 4,840 5,324 5,856 6,442 7,086
LSE 6,000 6,600 7,260 7,986 8,785 9,663 10,629
BSE 6,000 6,600 7,260 7,986 8,785 9,663 10,629
Com 5,000 5,500 6,050 6,655 7,321 8,053 8,858
QA 4,000 4,400 4,840 5,324 5,856 6,442 7,086
Tester 3,000 3,300 3,630 3,993 4,392 4,832 5,315
Team
VN(BSE1, SE3) 18,000 19,800 21,780 23,958 26,354 28,989 31,888
JP(SE3,@7,000) 21,000 21,000 21,000 21,000 21,000 21,000 21,000
- It is said that Vietnamese economic will stably grow up until 2050 (Population will be growing
as well).
- The working-age population will keep good ratio for economic growth until 2041.
* working-age > (Children + Aged)*2
kura’s feeling: I’m not sure where is the peak. But maybe.
(USD)

12. Consideration
- the end of "Cheaper Vietnam”
- the end of “Lab. Type Development”
Pivot Idea
- change customers(from Japan to …?)
- change product;
- Lab -> Normal Outsourcing (Make super efficiency)
- Low end -> High end (Hire Wizard)
* Don’t mistake the advantage of Vietnam is not cheaper price, but rich number of developers
- provide software for SE Asian Market (*Pay, Delivery…)
- enlarge company size 100+
or Exit (buy out)

13. 倉林 寛至 - Kurabayashi Hiroshi
CIO at LIFULL Tech Vietnam Co.,Ltd., HCMC
@kura kura@lifull-tech.vn
wanna know about LFTV? / wanna work with us? / wanna join us?
/ need consulting? / need presentation?
Feel free to contact me :)