MARKET COMPARISON 2025
Vietnam vs India vs Philippines: Where to Build Your Team?
A brutally honest comparison of the three major Asian outsourcing hubs. We analyze cost, culture, and code quality.
The Verdict
- Choose Vietnam for: Deep technical skills (AI, DevOps, Blockchain), high retention, and stability.
- Choose India for: Massive scale, legacy maintenance, and 24/7 BPO overlap.
- Choose Philippines for: Front-end web dev, customer support, and seamless English communication.
- Buyers comparing destinations but optimizing for delivery risk, not just price
- Teams that care about retention, governance, and predictable throughput
- Organizations choosing a long-term partner, not a “rent-a-dev” marketplace
- Lowest-day-rate decisions with no quality controls
- Teams unwilling to invest in governance (repos, reviews, CI)
- “Ship fast, clean up later” delivery cultures
The Data: Head-to-Head Comparison
| Factor | Vietnam 🇻🇳 | India 🇮🇳 | Philippines 🇵🇭 |
|---|---|---|---|
| Cost Index | $$ (Moderate) | $$-$$$ (Rising) | $ (Low) |
| Turnover Rate | Low (10-15%) | High (20-30%) | Medium |
| Top Specialties | AI, DevOps, Mobile | Enterprise Java, SAP | Web, Support, QA |
| Time Zone | GMT+7 | GMT+5.5 | GMT+8 |
Why Vietnam is Winning in 2025
Vietnam has emerged as the "startup nation" of SE Asia. Government investment in STEM education has produced a generation of engineers who are comfortable with modern tools like Rust, Go, Python, and Kubernetes.
Best for: Companies building new products, modernizing cloud infrastructure, or needing AI R&D.
The State of India
India remains the giant of outsourcing. If you need 500 developers in a month, India is the only place to go. However, competition for talent in hubs like Bangalore has driven salaries up, sometimes matching Eastern European rates.
Best for: Large enterprise maintenance contracts, massive scaling needs.
CITATIONS & RESOURCES
- Kearney Global Services Location Index 2024
- TopDev Vietnam IT Market Report
- Fair Developers Brand Facts