Minh Tuan, 28, used to earn 20–35 million VND (roughly $800–$1,400) a month taking freelance projects on the side, building websites and small apps for local businesses. Since late 2025, new contracts have nearly dried up. His former clients now simply describe what they want to an AI tool and get a working app without hiring anyone.

He is not alone. The rise of AI coding agents – tools like Claude Code, GitHub Copilot, Cursor and OpenAI Codex that can plan and execute multi-step development tasks autonomously – is reshaping the job market for software engineers across Vietnam.

For junior developers, the squeeze is particularly sharp. Entry-level work such as fixing small bugs, writing basic scripts and cleaning up old code has traditionally been how new hires build experience. That is now precisely what AI handles best. Thanh Hoai, 23, graduated in 2025 with a software degree and has sent out dozens of applications without success. “The basic tasks that used to go to juniors – AI can do those now,” he said.

Even experienced engineers are feeling the pressure. A Cornell University study found that senior developers using AI tools reviewed code 6.5% more often while their original coding output dropped 19%, as they spent more time fixing AI-generated errors than writing their own.

Industry experts say the profession is shifting from writing code to supervising it – designing system architecture, verifying outputs, managing risk and translating business problems into precise technical requirements. “The standout developer of the next era will need both solid programming fundamentals and mastery of orchestration, evaluation and governance,” said Dr. Le Duy Tan of Vietnam National University in Ho Chi Minh City.