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Experts have highlighted that specific sectors within Vietnam’s digital economy could experience substantial growth if they receive appropriate investments. Minister of Information and Communications Nguyen Manh Hung recently outlined Vietnam’s targets for the upcoming years. The country aims to have its digital economy contribute 20% of its GDP by 2025, increasing to 30% by 2030. Furthermore, each field and sector’s digital economy index is targeted to reach at least 10% by 2025 and 20% by 2030.
Minister Hung made these remarks at the inaugural national forum on the digital economy and digital society. According to data from the Ministry, the digital economy’s contribution to GDP in the second quarter was estimated at 15.26%, and for the first half of 2023, it stood at 14.96%. Vietnam will need to exert significant efforts over the next seven years to achieve its objectives.
As per an industry report, Vietnam’s digital economy is the fastest growing in Southeast Asia. The Gross Merchandise Value (GMV) is projected to increase by 28%, rising from US$ 18 billion in 2021 to US$ 23 billion in 2022, primarily attributed to the impressive 26% growth rate in the e-commerce sector.
While Vietnam’s digital economy’s growth is predominantly reliant on e-commerce, there are numerous other sectors within the digital economy where Vietnam possesses significant untapped potential. It is estimated that 90% of consumers who engage with digital products intend to continue and even increase their usage of e-commerce platforms.
Vietnam secured the top spot in the 2022 ranking for the most rapidly growing digital economy and e-commerce sector in Southeast Asia. Despite prevailing challenges in the region and globally, it is anticipated that Vietnam’s Gross Merchandise Value (GMV) will reach US$ 50 billion by 2025.
The main driving force behind Vietnam’s e-commerce sector is the strong consumer interest in food delivery services (60%) and online grocery shopping (54%). Among urban digital users in Vietnam, the adoption levels are the highest, with e-commerce, food delivery services, and online groceries leading the way at 96%, 85%, and 85%, respectively.
According to the report, 23% of the surveyed individuals mentioned that they watch video on demand at least once a week, with 19% stating they play online games, and 16% listening to music. The data underscores the substantial long-term potential in Vietnam for these digital entertainment and media activities.
Vietnam is also exploring international cooperation to bolster the digital economy by providing digital businesses with access to larger and more diverse markets, exchanging knowledge, expertise, and technology, and attracting foreign investors.
Recently, Vietnam jointly held a conference with Laos and Cambodia to discuss digital economic development trends and their potential to enhance trade and investment among the countries, opportunities and challenges arising from digital transformation for the growth of trilateral ties, and strategies to advance their cooperative efforts in the digital era.
As OpenGov Asia reported, experts at the event recommended that the sides establish and improve institutional and legal environments that align with the demands of the international integration era within the context of the digital economy. Additionally, the nations should invest in developing digital infrastructure to foster their national digital economies.
