IT industry suffers from lack of high-level talent, surfeit of entry-level coders

According to a 2025-2026 trend report released by TopCV, IT and software ranked second in the list of most in-demand sectors, accounting for 8.64% of total recruitment needs. The five hardest-to-fill roles in the industry were AI engineer (12.2%), bridge software engineer (9.92%), solutions architect (9.16%), mobile developer (7.63%), and software architect (6.87%).

But companies struggle to find suitable candidates. The report found that 53% of employers face shortages in terms of advanced skills, while 34.3% cite limited availability of high-quality applicants.

Many IT candidates also lack essential soft skills such as communication (57.3%), critical thinking (39.7%), and product mindset (33.6%).

A programmer coding on dual monitors. Photo by Pexels

The 2025-2026 recruitment trend report by ITViec suggests the market is recovering but becoming increasingly selective. Around 66.1% of companies plan to expand IT hiring in 2025, and 69.6% expect continued growth in 2026.

But 34.3% say AI-driven productivity gains reduce the need for additional hires.

The 2026 Labour Market Report by Navigos Group highlights the ability to understand and apply technology, including AI, as the most sought-after skill (76.8%).

But it also shows that in high-tech sectors such as AI and fintech, companies are favouring candidates with specialised expertise rather than new graduates.

For young programmers like 23-year-old Le Nam of Ho Chi Minh City, rising expectations around AI skills have made the job search increasingly challenging.

After graduating in August 2025 with a good IT engineering degree and practical part-time experience, Nam believed he was entering a talent-hungry field. But after six months of sending CVs and attending nearly 10 interviews, he has been repeatedly rejected or offered lower-than-expected salaries.

"One company told me they were cutting back on junior hires because AI allows senior developers to work faster," he says.

As a student, he earned VND10-15 million (USD$380-570) a month freelancing and using AI tools for what he describes as "above-basic" levels, but that has not been enough to convince employers.

Vietnam’s IT market is not shrinking, but is evolving.

As AI handles more routine coding tasks, companies are shifting their focus toward engineers who can design systems, solve real-world problems and think beyond syntax.

In other words, the market is not short of coders, but is short of adaptable, high-level tech talent.

Khanh Linh, who graduated with a computer science degree in 2025, represents this shift.

From her third year at university, she began experimenting with AI coding tools and rethinking how she worked.

"During my internship, I didn’t write all the codes myself but mainly guided AI to generate them and then refined them," she says.

"Back then, the tools weren’t as advanced as they are now, but helped me understand my role in the AI era and adjust accordingly."

Even so, the transition proved more difficult than expected.

"When I first started working, my main tasks were writing prompts and reviewing outputs," she says.

"After two months, I realised I didn’t truly understand how the system worked or where to debug errors. It felt like using a ‘black box.’ The biggest pressure wasn’t the workload, it was the feeling that four years of university knowledge wasn’t enough."

Recent data shows a clear decline in job opportunities for newly graduated programmers.

A study by the Stanford Digital Economy Lab published late last year found that employment among programmers aged 22-25 had fallen by nearly 20% compared to the 2022 peak, highlighting the growing impact of automation and AI on entry-level roles.

In 2025, the Future of Jobs Report from the World Economic Forum showed that 41% of global employers expect to reduce roles that AI can automate.

Data from investment firm SignalFire further indicated that hiring of new graduates at the world’s 15 largest tech companies has declined by more than 50% since 2019.

These figures reflect a clear reality: AI is not eliminating programming as a profession, but is reshaping hiring practices.

Phan Duc Thang, CEO of a mobile software company in Da Nang, says that until 2020 he had prioritised newly graduates.

"We used to scout for talented programmers while they were still at university. But since the middle of last year, we’ve focused more on training our existing team in AI skills."

Nguyen Duc Hoai, co-founder and CEO of Bizino, the company behind the AI-assisted coding platform Bizino AI, believes the job market is undergoing a sea change.

Tasks that once took junior developers hours, such as writing sample code, debugging, documentation, and creating test cases, can now be done by AI in minutes, he says.

More importantly, AI has evolved from merely "suggesting code" to autonomously receiving requests, analysing requirements, writing code, and running tests with minimal human intervention, he points out.

From a business standpoint, he argues that AI proficiency is no longer an added advantage, but is becoming a mandatory skill.

"At Bizino, workflows that previously required three to four juniors can now be handled faster by one senior working with AI, improving the speed by 55%."

He also points out a paradox in Vietnam’s market: While more companies are integrating AI, high-quality AI talent remains scarce.

"The market lacks highly skilled AI professionals but has a surplus of people who can only write basic code.

"AI isn’t ‘stealing jobs,’ but it is raising the hiring bar."

He says newcomers face three main barriers: Many roles labelled "entry-level" still require two to five years of experience, graduates must compete not only with one another but also prove their value beyond what free AI tools can deliver, and employers now test candidates on their ability to collaborate effectively with AI, not just their algorithmic knowledge.

"AI is compressing the traditional career ladder for programmers, forcing them to rethink required skills.

"The role of a junior developer is shifting from ‘low-level coder’ to ‘AI coordinator with product thinking’."

Hoang Minh Bau, production director at Rikkeisoft, says the company has integrated multiple AI agents across the entire software development lifecycle in the last one to two years.

"This shift has significantly changed our HR strategy.

"Demand for basic-level roles is gradually decreasing, while the need for experienced professionals who can oversee AI output quality and design effective AI-driven workflows is rising.

"Recruitment is shifting from ‘doing’ to ‘controlling and optimising’."

Beyond technical expertise, Báu emphasises the importance of emotional intelligence, including empathy and emotional management, skills that AI cannot replace in teamwork and client understanding.

For young programmers, adaptation is becoming essential.

Le Nam has enrolled for a second degree in data processing and AI systems, while attending AI workshops whenever possible.

Compared to some classmates who have either changed careers or accepted unpaid internships for experience, he feels he is "still on track."

Meanwhile, Linh continues working in a probationary role and has not yet secured a permanent contract, but believes she has learned far more on the job than during her university years and has quickly adapted to the new environment.

Every day, she learns additional skills to improve her performance and shares her learning journey on social media, hoping to help guide other newcomers navigating the same shifting landscape.