Should You Hire Software Developers in Vietnam or Chile?

Vietnam, like many of its neighbors, has long been considered a top market for software developers thanks to its low costs and large tech talent pool. But increasingly, businesses are looking closer to home for tech talent.

One of the top destinations for nearshore software development is Chile, known for its growing pool of engineers, investment in digital initiatives and education, and thriving startup scene. So, should you hire software developers in Vietnam or Chile? Let’s look at the pros and cons of each option.

Time Zone, Cultural Alignment, and English Proficiency

As a nearshore destination, Chile has a significant time zone overlap with businesses in the US. The country’s mainland operates with Chile Standard Time and Chile Summer Time, 1-2 hours ahead of EST. That’s ideal for real-time collaboration, decision-making, standups, and troubleshooting. 

Meanwhile, Vietnam follows the Indochina Time Zone, a 11–14 hour difference from the US. This makes synchronous collaboration near impossible. While offshoring to Vietnam does facilitate the “follow the sun” model—meaning you can have constant coverage thanks to opposite time zones—you may experience communication hiccups and difficulty with immediate problem resolution.

English proficiency is essential for seamless communication. Otherwise, things can literally get lost in translation, which can mean miscommunication and mistakes. While software developers in both Chile and Vietnam often speak English, Chileans tend to have stronger skills in this area. Case in point: Chile ranks 54th in the English Proficiency Index, 10 spots higher than Vietnam (64th).

Education

Chile stands out for educational investment. The government spends 5.4% of its GDP on education, higher than the average for other countries in Latin America. Chile also boasts a high proportion of STEM graduates and a large ecosystem of hands-on bootcamps and programs like 4Geeks Academy and Coderhouse, which have strong job placement rates. Meanwhile, universities such as Pontificia Universidad Católica de Chile and Universidad de Chile graduate skilled software developers annually.

Chile’s commitment to cultivating top engineers is further evidenced by initiatives like the Engineering 2030 Project, which aims to transform engineering and teaching, address challenges, and create a “vibrant ecosystem of entrepreneurship.”

Meanwhile, Vietnam faces numerous inequities in the education sphere. Close to 37% of children aren’t enrolled in upper secondary school, and early school dropout rates are high. And while Vietnam produces tens of thousands of STEM graduates annually, graduate employability is an enormous problem for these new professionals.

That said, Vietnam is taking strides to address these shortcomings. For example, the Politburo introduced a policy to waive tuition fees for primary and secondary school beginning in 2025, meant to improve educational access. Vietnam is also collaborating with organizations like the United Nations to increase accessibility and inclusivity. 

Still, Vietnam struggles with these factors, as well as the quality of education. In fact, some employers complain that despite large numbers of university graduates, many aren’t prepared with essential job skills.

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Data Protection

Data protection is an enormous concern for businesses working with any developers. Chile has more robust data protection laws than Vietnam, although both countries are working to improve their infrastructures.  

Vietnam ranks 12th in the number of internet users globally, but in terms of cybersecurity, it is particularly vulnerable.  Cyberattacks are prevalent and pose an enormous threat to the entire population, as well as those who make their data available to professionals within the country. However, the Vietnamese government is making strides to protect user data, including launching the Law on Personal Data, which seeks to impose a more robust data protection framework.

Chile, meanwhile, comes from a stronger cybersecurity foundation. The country introduced Chile Digital 2035 in 2022 with the ultimate goal of completely digitizing public services by 2035. Among other objectives, the initiative seeks to enhance cybersecurity, as well as improve infrastructure development.

Chile also passed the Chilean Personal Data Protection Act in late 2024, conceptualizing a comprehensive framework for data protection. The law closely resembles the GDPR and is expected to be fully enforceable by late 2026. Its measures include the creation of the Personal Data Protection Agency, which enforces compliance. This law applies to all organizations that operate in Chile and companies outside of the country that handle the data of individuals in Chile.

All in all, Chile has a more mature data protection framework. This is important for US businesses to consider when they determine whom to trust with their information. 

Conclusion: Should You Hire Developers in Vietnam or Chile?

Ultimately, you must consider cost vs. value. Software developers in Vietnam may come at a lower cost, but Chilean developers are a better value. Consider factors like nearshore alignment, English proficiency, education, and data protection. On every count, Chile is ahead of Vietnam. That means you can achieve greater innovation and more seamless workflows with nearshore tech talent.

Looking for software engineers in Chile and beyond? Browse talent across a wide range of roles, from full-stack development to AI engineering.