Production teams for tech startups are commonplace in Vietnam. Offshoring and nearshoring has become the norm for tech products as companies in high-income countries like the United States, Singapore, Australia and others seek to overcome local challenges, including costly labour and talent shortfalls.
This article links to a number of our more detailed guidances on issues relevant to foreign tech startups in Vietnam. Click through for more extensive content on any particular issue.
Why produce tech in Vietnam?
Vietnam is seen favorably in comparison to many other countries, including Indonesia, the Philippines, Thailand and China. The country is attractive for many reasons, but particularly the low cost of labour, the ready availability of development talent and the political stability. Vietnam offers the range of skill sets that might be required for a tech startup’s product, including developers, designers, testers and project managers.
What kind of tech teams foreign tech startups preferes?
Having your own team to build your product offers some significant advantages. While some startups may be tempted to outsource the production of their product, there is much to be said for internal capability and know-how; this, in addition to the familiarity with your users/customers is the approach that will encourage. Outsourcing will also cost significantly more than an internal resource.
The type of team really depends on the complexity and budget of the project.
- Some startups will begin with a very small team, often a talented full stack developer working closely with an experienced CTO (or similar).
- Other startups with more complicated or larger products will require a small team of 4-5, at least initially. Startups working with an Agile philosophy may choose to work as a Squad of 6-8 team members.
- Teams can often grow to 30+ members if the startup has significant revenue.
Each type of tech team presents different strengths and weaknesses!
How much does it cost to get a tech team started?
Startup costs will vary depending on the specific requirements. Administrative costs typically include company registration and a lease for an office. Once the company is operational, accounting costs and taxation will become relevant.
Lett’s consider the labour costs also in the outset. After including taxes and insurance, full-time developers can be hired for under $1,000 USD per month, but specific technical skills, high levels of English or additional years of experience can add to this amount. More detail on salaries for production teams are available here.
What are the first steps to get a tech team?
You’ll need to prepare some material for company registration. The exact list will vary depending on your ownership structure and the type of company preferred by your startup. Approval may also depending on the industry you will focus on.
Setting up an office using a standard commercial lease in Vietnam can be complicated and risky, particularly for a startup. However, it’s relatively simple to get a small team started if you know how, particularly if a flexible space (such as coworking) will be suitable. This approach avoids lengthy lease terms and large costs for deposits and fits-outs.
Finding your first employees in Vietnam will no doubt offer a new challenge for founders and executives from high-income countries. Nonetheless, these challenges can be overcome. If you’re hiring developers, you should also consider the issues specific to this job type.
Metasource has built many offshore software development teams for foreign entrepreneurs and can rapidly accelerate your commencement date, reduce your administrative overheads and the costs you are exposed to for company registration. Enquire for more information.
How do tech startups achieve success?
Foreign tech startups should be guided by some general rules to ensure the team is successful. This is a complex and expansive topic that includes the preparation to offshore, the initial commencement and subsequent operation of the team. You should pay close attention to the structure of your project and, as well, the management of the team.
Teams that operate remotely have specific considerations. The selection of remote team members, the management of the remote team and communication within the remote team are all exceptionally important to the team’s success. The right tools are also vitally important to ensure the remote team can perform as expected.
Need more help?
Metasource greatly simplifies and accelerates the commencement of your team in Vietnam. Take advantage of our expertise to get your production team started in Vietnam as soon as possible.