Vietnam’s Internet economy is forecast to become the second largest in Southeast Asia over the next decade, with it being anticipated to reach a figure US$220 billion by 2030.
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This information was unveiled in the “Roaring 20s: The SEA Digital Decade” report produced on November 10 by Google, Temasek and Bain & Company.
This year the Vietnamese digital economy is expected to grow by 31% to reach US$21 billion thanks to a growth rate of 53% in e-commerce activities compared to the same period from last year.
Despite the online travel market being in the process of shrinking due to travel restrictions, the Internet economy is expected to continue to reach US$57 billion by 2025, according to statistics set out in the report.
The country has seen eight million new digital consumers since the start of the pandemic up to the first half of the year, with 55% of them coming from non-metropolitan areas. Adoption remains high due to digital consumption rapidly becoming a way of life, with 97% of new consumers still using services and 99% intending to continue to make use of them going forward.
Pre-pandemic users, those who used the services before the pandemic, have consumed an average of four-times more services since the pandemic, and amongst all users, satisfaction with services sits at 83% across verticals.
With regard to small and medium-sized enterprises (SMEs) in Southeast Asia, a total of 30% of digital merchants in the nation believe that they would not have survived the pandemic if not for digital platforms.
The report outlines that digital financial services in the country are also becoming critical enablers, with 99% of digital merchants now accepting digital payments and 72% having adopted digital lending solutions. Many are also in the process of embracing digital tools to engage with their customers, with 72% expecting to increase usage of digital marketing tools over the next five years.
The nation also remains a highly attractive innovation hub, with more incubators, accelerators, and innovation labs compared to most other markets throughout the region. Despite market uncertainty, global capital continues to pour into the country given its strong growth fundamentals and growing digital ecosystem. As a result, investment appetite remains strong in digital services, many of which surged as a result of COVID-19, such as e-commerce, fintech, telehealth, and edutech.
Tram Nguyen, country director for Laos, Cambodia and Vietnam at Google Asia-Pacific, highlighted Vietnamese people’s resilience in overcoming challenges brought about COVID-19 and becoming fast adopters of new technology.
She emphasised Google’s commitments to help the country develop digital technology through a range of latest projects, such as “Vietnam Digital 4.0 Launchpad” and “Coding for the Future with Google”, both of which have effectively provided nearly a million people in the nation with digital skills.