Digital economy boosts Vietnam’s economic growth

A study of Google and Temasek from Singapore reports that Vietnam’s digital economy reached 3 billion USD in 2015 and 9 billion USD in 2019, and will reach 30 billion USD in 2025.

Digital economy boosts Vietnam’s economic growth

Another study by Australia’s Data 61 forecasts that Vietnam’s GDP may add an additional 162 billion USD in 20 years if the country’s digital transformation is successful.

Vietnam’s digital economy has grown since 2010 when smart phone coverage surpassed half of the population. It was boosted by the Industrial Revolution 4.0 in the last decade, when Vietnam’s infrastructure and business environment developed rapidly.

Dao Dinh Kha, Director of the IT Department of the Ministry of Information and Communications, said: “IT companies have grown rapidly. In the digital economy, creativity, competition, and sharing are implemented on the basis of digital technology, models, and skills.”

E-commerce, the most crucial factor of Vietnam’s digital economy, has grown strongly in terms of revenues and market scale totaling around 5.2 billion USD. In 2017, more than 83 million USD worth of foreign investment was poured into 21 Vietnamese e-commerce startups.

 

Mergers and Acquisitions (M&A) between e-commerce enterprises in Vietnam increased in value and number of transactions. The innovation startup ecology has grown. More than 3,000 innovative startups and 40 venture capital funds and angel investors were set up during the last 2 years.

According to the Ministry of Science and Technology, 78 financial technology (fintech) companies have been established in Vietnam. Vietnamese and foreign transport companies have launched several competitive apps like Grab, Uber, FastGo, Be, and VATO. Vietnamese travel startups have launched their applications like Mytour and Luxstay to compete with Booking, Agoda, and AirB&B.

Vietnam has basically completed connection of the data management of ministries, sectors and localities with the Government Office, moving up 10 places in the UN’s e-government rankings.

Minister and Head of the Government Office Mai Tien Dung said “In the 4th quarter of this year, we will complete the public service portal connecting public services from the central to local levels. Some public services will be piloted during the initial period to gain experience. We will assign ID codes to enable connection and sharing between organizations and individuals.”

The growth of Vietnam’s digital economy has been attributed to Vietnam’s sound IT infrastructure, wide user coverage, and Vietnamese people’s passion for technology. A young and well-trained Vietnamese population of hard-working and quickly adaptable people is the primary factor in the rapid growth of the digital economy. VOV5

Policy key to boosting Vietnam’s digital economy, say experts

Policy key to boosting Vietnam’s digital economy, say experts

The Ministry of Industry and Trade (MoIT)’s key task is to evaluate the building and adjustment of policies to support the development of the digital economy, according to Deputy Minister Cao Quoc Hung.  

Digital industry to contribute a quarter of Vietnam’s GDP by 2025

Digital industry to contribute a quarter of Vietnam’s GDP by 2025

A pending project on national digital transition aims for the digital industry to contribute 25 percent of Vietnam’s GDP by 2025 and for the country to be placed fourth among ASEAN member states in terms of national digital ranking.  

Vietnam outlines possible scenarios for digital development

Vietnam outlines possible scenarios for digital development

Vietnam outlines possible scenarios for digital development

 
 

Other News

.
Vietnam budget deficit forecast at 3.6% of GDP in 2021
Vietnam budget deficit forecast at 3.6% of GDP in 2021
FEATUREicon  12/01/2021 

Fitch Solutions holds a more optimistic view on Vietnam’s economic rebound in 2021, with its real GDP growth forecast at 8.6%, against the government’s 6.5% target.

Building materials market forecast to be robust in 2021
Building materials market forecast to be robust in 2021
BUSINESSicon  12/01/2021 

The building materials market is forecast to be robust this year, with the demand fuelled by the increase in infrastructure development investment and the recovery of the property market, according to the Ministry of Construction.

Vietnamese ports on pace to post banner year
Vietnamese ports on pace to post banner year
BUSINESSicon  12/01/2021 

Vietnam’s port sector will flourish this year as trade in goods is expected to thrive on the back of recovery in production, domestic consumption, and export markets, according to industry analysts.

Bright future tipped for Vietnam’s e-commerce market
Bright future tipped for Vietnam’s e-commerce market
BUSINESSicon  12/01/2021 

Vietnam’s e-commerce market is forecast to continue growing strongly in the time to come thanks to a big population with high rates of young people and internet users.

Resolution on switching investment format of North-South Expressway’s component projects adopted
Resolution on switching investment format of North-South Expressway’s component projects adopted
BUSINESSicon  12/01/2021 

The National Assembly Standing Committee yesterday adopted a resolution on the switching of investment format of some component projects on Eastern North-South Expressway project in 2017-20 period, which failed to find investors through biddings.

UK trade deal gives Vietnamese consumers greater access to luxury goods
UK trade deal gives Vietnamese consumers greater access to luxury goods
BUSINESSicon  12/01/2021 

Tran Hung Khuong, owner of an automobile shop in HCM City’s Tan Binh District, said people could now save up to VND15 billion by buying a Rolls-Royce Wraith directly imported from the UK, thanks to the Vietnam-UK Free Trade Agreement (UKVFTA).

Da Lat’s largest flower village unusually quiet before Tet
Da Lat’s largest flower village unusually quiet before Tet
BUSINESSicon  12/01/2021 

Van Thanh, the largest flower village of Da Lat, is quiet these days, with no flower collectors, though Tet will start in one month.

2020: black credit pushes people to the wall
2020: black credit pushes people to the wall
BUSINESSicon  12/01/2021 

Black credit grew strongly in 2020 when many people lost jobs because of Covid-19 and faced financial problems.

Railways revenues take $57.4 million hit from COVID
Railways revenues take $57.4 million hit from COVID
BUSINESSicon  11/01/2021 

The Vietnam Railways Corporation has lost VND1.32 trillion (US$57.4 million) in revenues due to the COVID-19 pandemic and flooding in the central region.

Vietnam sees record-high exports in 2020, but worries about trade accusations
Vietnam sees record-high exports in 2020, but worries about trade accusations
FEATUREicon  13/01/2021 

Overcoming lockdowns during Covid-19, Vietnamese goods still reached all corners of the planet.

Fitness chains, gyms face ups and downs during 2020
Fitness chains, gyms face ups and downs during 2020
BUSINESSicon  12/01/2021 

Prior to the pandemic, Lamita, a fitness studio chain, suspended its operation temporarily on January 4 because of unsettled internal conflicts.

Vietnam continues to move forward in 2021
Vietnam continues to move forward in 2021
BUSINESSicon  11/01/2021 

Dr Tran Thi Hong Minh, Director of the Central Institute for Economic Management, talks about Vietnam’s potential for economic development in 2021.

Where to invest your money in 2021?
Where to invest your money in 2021?
BUSINESSicon  11/01/2021 

Traditional investment channels such as stock or real estate markets are set to continue to be the focus for investors in 2021.

What scenario ahead for Vietnamese price market in 2021?
What scenario ahead for Vietnamese price market in 2021?
BUSINESSicon  11/01/2021 

Despite suffering a slowdown in production and business activities as a result of the impact caused by the novel coronavirus (COVID-19) pandemic, the Vietnamese economy enjoyed positive annual growth of 2.91% in 2020, according to economic experts.

Stock market 2021: Positives and risks
Stock market 2021: Positives and risks
BUSINESSicon  11/01/2021 

The stock market ended 2020 with diverse notes, from the selloff in Q1 which sent the VN-Index down to 660 points, the lowest in four years, to the recovery and strong rally, especially in Q4.

Amid favorable conditions, bank listings on the rise
Amid favorable conditions, bank listings on the rise
BUSINESSicon  11/01/2021 

In the context of favorable conditions on the stock market which saw the indices rising sharply over the past eight months, getting listed at the moment will give banks better valuation and make it easier for them to attract greater cash flows,

Insurance firms struggle to attract investors despite good performance
Insurance firms struggle to attract investors despite good performance
BUSINESSicon  11/01/2021 

Insurance companies performed well in Vietnam during the COVID-19 pandemic, but their shares have not attracted much attention from investors.

US newspaper: US, Vietnam working to resolve trade issues
US newspaper: US, Vietnam working to resolve trade issues
VIETNAM & WORLDicon  11/01/2021 

The Inside US Trade has published an article entitled “US, Vietnam working to avoid imposition of Section 301 tariffs”.

Shrimp exporters bring home 3.85 billion USD in 2020
Shrimp exporters bring home 3.85 billion USD in 2020
BUSINESSicon  10/01/2021 

Earnings from shrimp exports reached 3.85 billion USD last year, up 15 percent year-on-year despite difficulties caused by the COVID-19 pandemic.

Flexible, cautious monetary policy management bears fruit
Flexible, cautious monetary policy management bears fruit
BUSINESSicon  10/01/2021 

Vietnam’s economy was adversely affected by the COVID-19 pandemic in 2020, along with natural disasters and the impact of trade conflicts.

 
 
 
Leave your comment on an article

OR QUICK LOGIN