A Guide to Automotive Software Development in Vietnam

The automotive industry is experiencing a significant change. From traditional hardware-reliant models, it now witnesses the growing popularity of software-defined vehicles (SDVs). In SDVs, software is not simply an add-on. Instead, it functions as the foundational architecture that revolutionizes mobility. Such software covers in-vehicle infotainment (IVI) and electric vehicle (EV) systems, to advanced driver-assistance systems (ADAS). They integrate notable features like over-the-air (OTA) updates, cybersecurity measures, and autonomous driving capabilities. 

Compared to traditional software, automotive systems are more complicated. Therefore, automotive manufacturers and their suppliers have to look for global talents proficient in meeting the complex requirements of such software, while ensuring cost-effective solutions. And Vietnam is one of the best destinations for outsourcing automotive software development. So, why should you choose Vietnam as a go-to place for automotive software? What is the key expertise of Vietnam-based companies in this realm? Let’s find the answers in today’s article!

Why is Vietnam a Go-To Hub for Automotive Software?

Vietnam has become an attractive destination for automotive software development as an inevitable result of its strategic advantages. They include: 

1. Cost-Effectiveness & High Quality

Compared to Western countries and some other established Asian outsourcing hubs, Vietnam offers more competitive labor costs. This makes Vietnamese tech companies provide leaner project pricing while ensuring the quality of the entire project and final deliverables. This focus on cost-effectiveness and high-quality outputs not only significantly reduces your operational costs but also ensures every dollar spent on software development in Vietnam can go further. 

2. Growing Talent Pool

Vietnam has a significantly abundant talent pool that grows nonstop over the years. According to the Vietnam IT Market Report 2024-2025 by TopDev, between 55,000 and 60,000 students enroll in Computer Science and IT-related majors at key universities and colleges. 

The Vietnamese labor force is well-equipped with foundational knowledge in programming, system design, and algorithms. Further, they’re quick learners, eager to learn new technologies, and adept at problem-solving. Many tech companies like FPT Software also make investments in IT education and training by supporting their staff’s learning journey in automotive software development. Beyond technical skills, we’ve witnessed a remarkable increase in English proficiency among software engineers. This ensures smoother and more effective communication with international clients. 

3. Strong Government Support

The Vietnamese government has released pro-business initiatives and policies to attract foreign direct investment (FDI) into high-tech industries, as well as promote AI, automobile, and semiconductor development. These policies often involve Corporation Income Tax (CIT) incentives, huge investments in high-tech parks, and simplified licensing procedures. Essentially, Vietnam provides a stable socio-political environment. This opens a secure door for long-term and sustainable business operations. 

4. Thriving Tech Ecosystem

Robust government support and other advantageous conditions have contributed to creating a dynamic and continuously thriving tech ecosystem in Vietnam. Various global tech giants like Samsung, Intel, and Nvidia have significantly invested in R&D centers and manufacturing facilities. Their presence, coupled with the rapid growth of the broader IT industry, has created a robust tech ecosystem and ensures a strong approach to advanced technologies like AI/ML or IoT. These technologies play a crucial role in defining the next phase of automotive software solutions, from connected car systems to smart autonomous driving. 

5. Commitment to Standards & Innovation 

Vietnamese automotive software developers also focus on holding globally recognized certifications to demonstrate their compliance with software quality and security. Some of them include: 

• ISO 9001 ensures their commitment to consistent quality throughout the software development process.
• CMMI (CMMI Level 3 or higher) evaluates, manages, and improves development processes consistently.
• ASPICE assesses and improves automotive-specific software development. 
• ISO 26262 guarantees automotive functional safety, especially for electrical and electronic systems in vehicles.
• AUTOSAR develops standardized ECU (Electronic Control Unit) software.
• ISO/SAE 21434 identifies requirements for cybersecurity engineering and management in road vehicles.

Besides, several Vietnamese tech companies like VinAI or FPT Software have made significant investments in R&D. This strategic approach allows them to actively explore and develop innovative solutions that integrate emerging technologies like advanced AI algorithms for autonomous driving. 

Key Areas of Expertise in Vietnamese Automotive Software Development

Backed by a growing talent pool and dynamic tech ecosystem, Vietnamese companies are capable of handling the different demands of modern vehicle architecture. Here are some of their core areas of expertise in automotive software development.

1. Embedded Software

Every modern vehicle needs a complicated network of embedded systems to perform certain functions; for example, Engine Control Units (ECUs) monitor fuel injection, ignition timing, emissions, and so on, while Airbag Control Units identify collisions and trigger airbags. 

Many Vietnamese tech companies like VTI or Rikkeisoft are proficient in programming firmware and microcontrollers to directly control the physical hardware components (e.g., sensors, injectors, or spark plugs) within these embedded systems. Some also excel in integrating and customizing Real-time Operating Systems (RTOS) to ensure instant responses to events and the safety of key functions in automobiles.

2. In-Vehicle Infotainment (IVI) Systems

IVI systems integrate essential features to offer access to music streaming, Bluetooth connectivity, phone integration, GPS navigation, etc. Vietnamese software development companies like LTS Group or FPT Software are adept at creating and testing IVI systems, from designing an intuitive and visually appealing interface to developing features like audio-video navigation, telematics, etc. 

3. Advanced Driver-Assistance Systems (ADAS)

ADAS, as the name suggests, is developed to guarantee safety and assist drivers. Accordingly, these systems leverage sensors, cameras, RADAR, LiDAR, and algorithms to observe an automobile’s surroundings, analyze real-time data, and offer warnings for safe driving. As of late 2024, the Vietnam ADAS market is valued at $490 million. The market is predicted to thrive in the next five years, primarily propelled by the increasing concerns about road safety and the government regulations to minimize traffic-related fatalities. 

Along with the rapid growth of this market are the endeavors of various tech companies like FPT Software or Ban Vien Corporation in creating effective ADAS. Their solutions allow vehicles to integrate data from multiple sources (like camera or radar sensors) to better understand a vehicle’s surroundings. The companies also create complex algorithms for different features (like automatic emergency braking or parking assistance) to ensure safety and convenient driving. Further, they ensure automotive functional safety by complying with international standards like ISO 26262. 

4. Electric Vehicle (EV) Software

Electric vehicles in Vietnam are in high demand, with Vietnam’s EV market value experiencing an annual growth rate of 18% (2025-2030). Additionally, KPMG also claimed that most consumers (36%), primarily aged 24-44, will choose full EVs in the future. These statistics are inevitable results of the increasing concerns about environmental protection among young people and the release of policies like reduced import taxes. 

The surge of EVs has led to the growing demand for relevant software. Vietnamese companies have broad competency in crafting and testing software for crucial EV components, like Battery Management Systems and Charge Station Management Systems. They also have expertise in integrating with charging infrastructure to ensure smooth communication between charging stations and EVs.

5. Cybersecurity in Automotive

When automobiles are more connected and software-centric, cybersecurity measures are accordingly becoming more crucial than ever before to protect vehicle systems from any threats. Vietnamese software developers, therefore, have extensive capabilities in creating secure communication protocols, secure boot processes, and intrusion detection systems. They also develop automotive software with cybersecurity in mind and adhere to international cybersecurity standards in the automotive industry, like ISO/SAE 21434. 

6. AI/ML in Automotive

Recently, we’ve witnessed the success of various AI-powered automotive software made by Vietnamese development companies. 

Typically, VinAI – a member of VinGroup – introduced its AI-powered solutions in late 2022, including Driver Monitoring System (DMS) and Advanced Surround View Monitoring (ASVM). 

DMS uses AI to analyze a driver’s attentiveness based on the data collected from high-quality cameras installed in a vehicle. In the future, this solution is expected to identify the presence of children or pets in the vehicle or monitor the driver’s health status. ASVM, meanwhile, uses advanced algorithms to analyze high-resolution images from cameras installed around the vehicle. This solution helps drivers navigate through busy or narrow streets and park their cars more smoothly. 

Beyond driving, AI and MO are widely adopted to personalize in-car experiences, through features like voice commands or smart climate management. 

Top 5 Notable Players for Automotive Software Development in Vietnam

So, what are the notable Vietnam-based companies in automotive software development? Let’s discover the five best candidates in this section:

1. FPT Automotive

FPT Automotive is a subsidiary of FPT Software. It’s also one of the leading automotive software developers in Vietnam. The company has collaborated with various top automotive manufacturers like Honda, Hyundai, Volvo, and Ford. With nearly 20 years of experience, the company has assisted its clients in accelerating and transforming SDVs (Software-Defined Vehicles) to deliver the highest-level security and superior driving experiences. 

FPT Automotive offers end-to-end engineering services, covering: 

• Automotive Software empowers next-gen automobiles. FPT Automotive has extensive expertise in AUTOSAR, ADAS & Autonomous Driving, Cockpit Domain Controllers (e.g., IVI, Telematics, and Navigation), Functional Safety & Cybersecurity, etc.
• Digital Services enhances connectivity experiences. Accordingly, the company provides solutions for EV monitoring, fleet management, predictive maintenance & safety, and cloud services.
• Mechanical Engineering improves development processes with AI-powered CAD/CAE services.
• Electrical Engineering focuses on design consultation, schematic design/PCB layout, software development, testing, and mechanical engineering. 

FPT Automotive has a rich and constantly growing talent pool of 5,000+ engineers, including software development engineers, AUTOSAR professionals, testers, and LSI/CAD/CAE engineers. They have deep expertise, along with a flexible delivery model and quality certifications (e.g., ISO26262, A-SIL A/B/C/D, and A-SPICE Level 3), to deliver cost-effective, but highly efficient solutions in compliance with global standards.  Also, they adopt AI capabilities to assist drivers and increase their engagement by up to 35%.

2. TMA Solutions

TMA Solutions has over 8 years of experience in delivering automotive software development services. From R&D prototyping and embedded software to app development and MiL/SiL testing, the company has the right resources to meet your unique and evolving requirements. 

TMA’s engineers have deep expertise in automotive technologies to create high-rated, advanced solutions that help you stay ahead of the market. These solutions include: 

• In-vehicle systems (e.g., infotainment embedded software and HMI apps)
• Door and window power syýtems
• Car controller systems
• CarPilot diagnostic
• Navigation for the Android automotive operating system
• Car mobile remote
• Traffic image processing
• Automotive NAD (Network Access Device)
• V2X (Vehicle-to-Everything) stack

3. Ban Vien Corporation

Ban Vien Corporation is one of Vietnam’s leaders in automotive software and embedded system development, established in 2010. Employing customer-centric development processes, the company commits to offering top-notch digital solutions to address your existing problems and optimize operations. 

Ban Vien’s highly skilled and certified engineers have a big passion for automotive technologies and a long-term commitment to excellence. This mindset helps them create tailored, cutting-edge solutions in this dynamic industry, advancing automotive safety, efficiency, and sustainability. They have deep technical capabilities in: 

• Software-defined vehicles (SDVs)
• In-vehicle information
• Connected car solutions
• Model-based design platforms
• Functional safety & security

4. Rikkeisoft

Rikkeisoft is one of the leading Vietnamese tech companies offering IT solutions and services worldwide. They have a large talent pool of 2,200 employees to drive digital success across industries, especially automotive. 

The company offers full-cycle development and testing services for automotive software and hardware to meet your unique needs. These services include:

• Software Development: Covers developing non-AUTOSAR apps, HMI systems, MCAL, diagnostic software, and vehicle communication protocols (e.g., LIN or CAN). 
• Testing: Focuses on software unit testing, systems testing, and integration testing to ensure software performance and integrity. Further, Rikkeisoft offers extensive HMI testing services for functions, performance, usability, safety, and Android compliance. 
• CAD/CAE: Involves modeling 2D/3D automotive electronic systems for exterior light to ensure quality and accuracy.

These excellent services, coupled with deep technical expertise, allow Rikkeisoft to develop advanced IVI and automotive subsystems. Their solutions save you development costs by up to 70% while ensuring the best software quality.  

5. LTS Group

LTS Groups, for Lotus Technology Services, is a top-tier Vietnam IT outsourcing company with nine years of experience in different industries, including automotive. Initially as a quality assurance company in Vietnam, LTS Group has excellently expanded its technology services, from software development and testing to digital BPO. The company has a large talent pool that has domain-specialized technical skills to create industry-customized solutions.   

LTS Group has years of experience in collaborating with 10+ global OEMs on 254 car models (EV, HEV, PHEV, and FCEV). Their solutions are of high quality, delivering safe and pleasing driving experiences for drivers through advanced features. LTS Group now offers the following development services for the automotive industry:

• IVI Systems Development and Testing: Offers features like instrument clusters, telematics, and audio-video navigation for smart middleware and HMI apps. 
• Automotive Software Development: Develops and integrates AUTOSAR and ASPICE-compliant software.
• Data Annotation for Automotive Industry: Offers data annotation services like 2D/3D labeling to boost ADAS and autonomous driving.
• Automotive Testing: Verifies the flawless operations of your telematics, in-vehicle infotainment, and 3D cluster solutions.

Final Words

The automotive industry has been changing a lot, especially due to the growing popularity of EVs and AI integration to enhance driving experiences and ensure safety. This shift has propelled the demand for in-vehicle software, and accordingly, an increase in automotive software developers. 

Vietnam, as we mentioned, is a rising hub for this realm. This nation has favorable conditions – from growing, highly skilled engineers to strong government support – for auto manufacturers to outsource their software projects at a competitive price. Vietnamese tech companies like FPT Automotive or Ban Vien Corporation are adept at automotive technologies to develop a variety of software solutions like IVI systems, ADAS, and embedded software. With huge potential, Vietnam’s automotive software development will continue to thrive, with the growing integration of AI, in the future. 

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