Vietnam or India for AI outsourcing? An honest comparison
The short answer
Both countries can build a strong AI team. India has a far larger tech workforce, about 5.95 million people against Vietnam's 1.9 million, though the two countries count it differently. India also shares more working hours with Europe. Vietnam shares more hours with Australia and scores higher on overall English in the EF index for 2025. Published developer pay sits in a similar range in both countries. In my view, Vietnam suits a small, senior applied-AI team. Pick on team size, time zone and who will run the team, not on salary alone.
Side by side
| Vietnam | India | |
|---|---|---|
| Tech workforce | Over 1.9 million in digital technology businesses, hardware and electronics included (Ministry of Science and Technology, via Vietnam News, 11 Sep 2026) | About 5.95 million direct employees (FY2026 estimate; Nasscom Strategic Review 2026, via PTI, 24 Feb 2026) |
| Back-end developer pay, median | 37.8 million VND a month, about USD 1,450 (ITviec IT Salary Report 2025 to 2026, all levels) | USD 22,086 a year, about USD 1,840 a month (Stack Overflow Developer Survey 2025, all levels) |
| English, EF English Proficiency Index 2025 | Score 500, rank 64, moderate. Speaking score 461 | Score 484, rank 74, low. Speaking score 500 |
| Time zone | UTC+7, no daylight saving | UTC+5:30, no daylight saving |
| Personal data law | Law No. 91/2025/QH15 in force since 1 Jan 2026, guided by Decree 356/2025/ND-CP | Digital Personal Data Protection Act 2023; Rules notified 13 Nov 2025; most duties apply from 13 May 2027 |
Read the pay and workforce rows with care. The two pay figures come from different surveys with different methods, so they show the range, not an exact gap. Both are what developers earn, before an employer's extra costs or an agency's margin. The Vietnam report does not say if its figures are before or after tax. The workforce counts differ too: Vietnam's includes hardware and electronics businesses.
Shared working hours, in plain numbers
Counting a 9 to 5 day in the client's city against a 9 to 6 day for the team:
| Your team is in | Vietnam overlap | India overlap |
|---|---|---|
| Sydney, April to October (standard time) | 5 hours | 3.5 hours |
| Sydney, October to April (summer time) | 4 hours | 2.5 hours |
| London, October to March (winter time) | 2 hours | 3.5 hours |
| London, March to October (summer time) | 3 hours | 4.5 hours |
| New York or Vancouver | None in normal hours | None in normal hours |
For North America, both countries need a shifted window: an early start or a late finish on one side. That is a setup question, not a reason to pick one country.
When India is the better choice
- You need a large team fast. A workforce of about 5.95 million gives you more people to choose from at every level.
- Your business runs on European hours. India shares about an hour and a half more of the working day with London.
- Your team will talk to customers out loud. India's speaking score is higher in the EF index, even though Vietnam's overall score is higher.
When Vietnam is the better choice
This part is my judgement, not a data study.
- You want a small, senior team for applied AI: agents, automation and the integrations around them, where a few strong engineers and one clear owner beat a big headcount.
- You work with Australia or Asia Pacific, where Vietnam shares more of the day.
- You want someone on the ground who knows both sides. I studied computer science at SFU and computer systems technology at BCIT, worked as a software engineer in Kyoto, and have spent nearly 20 years building teams in Vietnam. When we took over JWT as well, our agency was 150+ people, and I later led Wunderman Thompson Vietnam as CEO, with 100+ people.
Whichever country you pick
In my experience, the country matters less than the setup. The teams that work have one owner on your side, a fixed daily overlap, and every AI tool treated like a hire, with a job, a cost and a review. Before you hire anyone in either country, check whether an AI tool can do that job in-house first. More on that in How to create an AI team in your business and Building an AI team in Vietnam.
When a Western company asks me to build its AI team in Vietnam, I do the whole job: full advice, architecture, design, setup and implementation, and when needed I build the team. I'm the orchestrator. See Fractional Chief AI Officer and What does an AI consultant actually do?
Questions people ask
Is Vietnam cheaper than India for software developers? Published surveys put back-end developer pay in a similar range in both countries: a median of about USD 1,450 a month in Vietnam and about USD 1,840 a month in India. The two surveys use different methods, so treat the gap as rough. In my experience, team size, time zone and who runs the team change your total cost more than this gap.
Which country has better English, Vietnam or India? In the EF English Proficiency Index 2025, Vietnam scores 500 and ranks 64th, and India scores 484 and ranks 74th. India scores higher on speaking, 500 against 461. On writing the two are close, Vietnam 508 against India's 504, and Vietnam scores higher on reading, 522 against India's 494. For spoken customer work, India has the edge.
Which time zone works better for teams in the US, the UK or Australia? Vietnam shares more of the working day with Australia: with Sydney, about 5 hours against 3.5 in winter and 4 against 2.5 in summer. India shares more with the UK: about 3.5 hours against 2 in the UK winter and 4.5 against 3 in summer. Neither overlaps normal office hours in New York or Vancouver, so plan a shifted window either way.
Do data protection rules differ between Vietnam and India? Yes. Vietnam's Personal Data Protection Law has been in force since 1 January 2026. Most of India's duties under its Digital Personal Data Protection Act apply from 13 May 2027. This is a plain-English summary, not legal advice. Check the current rules with a local lawyer in the country you choose before you sign anything.
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Sources (opened and checked 26 Oct 2026; re-checked 28 Oct 2026)
- Vietnam News, Digital technology industry employs 1.9 million, 11 Sep 2026 (Ministry of Science and Technology, workshop 10 Sep 2026): https://vietnamnews.vn/Sci-Tech/1799551/digital-technology-industry-employs-1-9-million-targets-global-value-chains.html
- PTI via The Week, Nasscom Strategic Review 2026, 24 Feb 2026 ("59.5 lakh" direct employees in FY26, from 58.15 lakh in FY25): https://www.theweek.in/wire-updates/business/2026/02/24/india-fy26-tech-revenues-seen-6.1-pc-up-at-usd-315-bn-jobs-also-grow-nasscom.html
- ITviec IT Salary and Recruitment Report 2025 to 2026 (median tables, back-end developer 37.8 million VND): https://itviec.com/report/vietnam-it-salary-and-recruitment-market
- Stack Overflow Developer Survey 2025, Work, section 4.3 Salary by developer type, India, "Developer, back-end $22,086": https://survey.stackoverflow.co/2025/work
- EF EPI 2025 fact sheet, Vietnam (rank 64, score 500, speaking 461): https://www.ef.com/assetscdn/WIBIwq6RdJvcD9bc8RMd/cefcom-epi-site/fact-sheets/2025/ef-epi-fact-sheet-vietnam-english.pdf
- EF EPI 2025 fact sheet, India (rank 74, score 484, speaking 500): https://www.ef.com/assetscdn/WIBIwq6RdJvcD9bc8RMd/cefcom-epi-site/fact-sheets/2025/ef-epi-fact-sheet-india-english.pdf
- Tilleke & Gibbins, Vietnam's new Personal Data Protection Law (Law No. 91/2025/QH15, effective 1 Jan 2026; Decree 356/2025/ND-CP): https://tilleke.com/insights/vietnams-new-personal-data-protection-law-a-closer-look
- AZB & Partners, India's DPDP framework comes into effect, 19 Nov 2025 (Rules notified 13 Nov 2025; consent managers 13 Nov 2026; main duties 13 May 2027): https://www.azbpartners.com/bank/update-indias-digital-personal-data-protection-framework-comes-into-effect/
- Time zones, Time in Vietnam (UTC+7, no daylight saving): https://en.wikipedia.org/wiki/Time_in_Vietnam
- Time zones, Indian Standard Time (UTC+05:30, no daylight saving): https://en.wikipedia.org/wiki/Indian_Standard_Time