The 44-year-old had been out of work since May, when his contract was not renewed by the Victory, despite finishing fourth and reaching the previous year's A-League Men grand final.
Diles, who has previously worked under Socceroos boss Tony Popovic, was announced as the new manager of V.League 1 side Cong An Ho Chi Minh City (CAHCM) on a two-year deal on Wednesday.
He is expected to relocate his family to Vietnam - where Australia great Harry Kewell is coaching Hanoi FC - in the coming days.
"When it all went down with Victory my kids were like, 'Dad, can we go to Asia next?' and I said we don't always pick where we go," Diles told AAP.
"My kids have already been to five or six schools and they're in year eight, they're resilient kids and understand what this journey is about.
"As negotiations have progressed, I've seen how keen they were to get me there, and I did my research and could see that it's a club that's got a bit of ambition.
"They finished fifth in the league and won the cup, so there's a lot of room to grow. I thought it's a nice little project, let's go for it."
Diles arguably has a right to feel aggrieved that he was even on the hunt for a job after kicking off talks with the Victory over an extension, which was pulled following their finals exit at the hands of Sydney FC.
The Sydneysider brought through a young core of home-grown players and helped Victory seal a return to Asian football for the 2026-27 season.
"I think the most bold and unapologetic thing they could've done was back me as an emerging and local Australian coach that transitioned through their club from an assistant to head coach," Diles said.
"I'm really proud of my achievements, getting the club to back-to-back grand finals plus back-to-back finals series, which the club wasn't able to do for many years, and finally qualifying for ACL2."
Diles also helped bring 2010 World Cup winner Juan Mata to the Victory after his frustrating first ALM season at Western Sydney, and the Spaniard has since bought a stake in the Victorian club.
"For me, my highlight was signing Juan Mata at a time when people questioned what he had left to contribute as a footballer, and people even questioning me when I signed him," Diles said.
"I knew what he was capable of, and what he could add to the team, and after my first conversation with him I knew he was an incredible person who was still hungry and motivated.
"I supported him to enjoy his football and enjoy our football style, along with the great team environment we had created. He absolutely blitzed it and he had the whole world tuning into the A-League."
Diles has already been monitoring potential recruits and said he would look at raiding the Australian market as he assembles a squad.
Wellington Phoenix captain Alex Rufer had been in talks with CAHCM before Diles' arrival.
