Vietnam emerged as most digital of all ASEAN economies: Google & Temasek

Vietnam’s internet economy is booming, as it reaches for US$12 billion in 2019 on a 38% annualized growth rate since 2015, and projected to increase to US$43 billion by 2025.

Vietnam emerged as most digital of all ASEAN economies: Google & Temasek
Source: e-Conomy SEA report 2019.

With the gross merchandise value (GMV) of internet economy set to account for over 5% of the country’s GDP in 2019,10 Vietnam is emerging as the most digital of all economies in ASEAN, according to a research report by Google, Temasek and Bain. 

According to the report, Vietnam’s Internet economy is booming, as it reaches for US$12 billion in 2019 on a 38% annualized growth rate since 2015, and projected to increase to US$43 billion by 2025. 

Overall, the Southeast Asian Internet economy has leapt nearly 40% from last year to exceed $100 billion in GMV in 2019 across the online travel, e-Commerce, online media and ride hailing sectors.

The region is on track to hit US$300 billion in 2025, US$60 billion more than previously estimated.

With all sectors taken into account, the GMV of the Internet economy amounted to 3.7% of Southeast Asia’s gross domestic product (GDP) in 2019, up from 1.3% in 2015.

It is projected to exceed 8% by 2025. Southeast Asia is closing the gap with developed markets like the US, where the Internet economy had made up 6.5% of the GDP in 2016.

While the region has grown at an average rate of 33% a year since 2015, the two pacesetters in the region are Indonesia and Vietnam, which lead the pack with growth rates in excess of 40% a year.

Vietnam emerged as most digital of all ASEAN economies: Google & Temasek
Source: e-Conomy SEA report 2019.

“e-Commerce is a key driver behind Vietnam’s impressive numbers, where homegrown marketplaces like Sendo and Tiki compete with regional players like Lazada and Shopee,” stated the report. 

These dynamics are unlocking opportunities for entrepreneurial Vietnamese small and medium-sized businesses, which have jumped onboard the Internet economy to do business.

 

Investor confidence in Vietnam, the third most-funded economy in the region after Indonesia and Singapore, is on the rise.

Over the last four years, Vietnam’s Internet economy has attracted almost US$1 billion in funding, with 2019 in line to be a record year.

Vietnam emerged as most digital of all ASEAN economies: Google & Temasek
Source: e-Conomy SEA report 2019.

Economic growth in ASEAN has averaged 5% a year in the last five years and has exceeded the global growth average by approximately 2 percentage points over the past decade.

This is indicative of a stable and rapidly developing region that is on its way to becoming a major economic powerhouse.

By 2030, Southeast Asia is expected to become the world’s fourth largest economic bloc. Hanoitimes

Hai Yen

Unlocking Vietnam’s digital future

Unlocking Vietnam’s digital future

With its great potential, Vietnam is marching towards becoming a modern nation with a digital economy amid the Industry 4.0 unfolding far and wide, which has major impacts on the business community.  

Vietnam’s digital economy likely to hit $30 billion in 2025

Vietnam’s digital economy likely to hit $30 billion in 2025

Vietnam's digital economy was valued at 9 billion in 2018 and is expected to reach 30 billion by 2025, according to Open Gov Asia.  

Digital the only way forward

Digital the only way forward

It's clear that digitalization is a prerequisite for local banks to survive and develop in the new era.

 
 

Other News

.
Quang Ninh looks to become a strong marine-based economic hub
Quang Ninh looks to become a strong marine-based economic hub
BUSINESSicon  13/02/2021 

The northern province of Quang Ninh has outlined key measures to develop its marine-based and coastal economy, with a focus on eco-friendly tourism, maritime services, and coastal industry.

Vietnam automobile industry on recovery path despite Covid-19
Vietnam automobile industry on recovery path despite Covid-19
BUSINESSicon  13/02/2021 

Vietnam’s rising income per capita would soon move cars from a luxury product with a passenger vehicle density of 34 per 1,000 to a more ordinary one with a density level comparable to countries in the region.

Real estate appeal remains amid tumult
Real estate appeal remains amid tumult
BUSINESSicon  13/02/2021 

Vietnam has more real estate investment opportunities than other more mature Asia-Pacific markets, though certain difficulties remain.

VIETNAM BUSINESS NEWS FEBRUARY 13
VIETNAM BUSINESS NEWS FEBRUARY 13
BUSINESSicon  13/02/2021 

 Vietnam receives foreign cargo ships on first day of Lunar New Year

Vietnam continues to move forward in 2021
Vietnam continues to move forward in 2021
BUSINESSicon  14/02/2021 

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

Domestic coffee exporters expect a promising year
Domestic coffee exporters expect a promising year
BUSINESSicon  13/02/2021 

Vietnam’s coffee exports are expected to have a good start to 2021 after a gloomy year due to the severe impacts from the COVID-19 pandemic, according to industry insiders.

2021 GDP to grow 6.72 pct. in optimistic scenario: NCIF
2021 GDP to grow 6.72 pct. in optimistic scenario: NCIF
BUSINESSicon  12/02/2021 

The National Centre for Socio-Economic Information and Forecasting (NCIF) has released a forecast on Vietnam’s economic performance in 2021, with GDP growth of 6.72 percent and CPI of 4.2 percent under an optimistic scenario.

Silver lining found in investment channel risk this year
Silver lining found in investment channel risk this year
BUSINESSicon  12/02/2021 

Investors are pinning their hopes on different investment channels this year despite the many difficulties and risks brought about by COVID-19, analysts have said.

Construction firms urged to apply technology to improve efficiency
Construction firms urged to apply technology to improve efficiency
BUSINESSicon  11/02/2021 

The impacts of the COVID-19 pandemic and Industry 4.0 required construction firms to invest in technology to improve efficiency.

Vietnam promotes export of processed agro-forestry-fisheries products
Vietnam promotes export of processed agro-forestry-fisheries products
BUSINESSicon  11/02/2021 

The project aims at improving the quality and value of agro-exports to meet the regulations of importers.

Struggling shopkeepers at HCM City traditional markets learn to sell online
Struggling shopkeepers at HCM City traditional markets learn to sell online
BUSINESSicon  11/02/2021 

With traditional markets in HCM City struggling amid the COVID-19 pandemic, more and more of their shop owners are looking to sell their goods on online channels such as delivery apps and social media.

Pandemic reveals enterprises’ view of responsibility
Pandemic reveals enterprises’ view of responsibility
BUSINESSicon  11/02/2021 

The unprecedented challenges arising from the COVID-19 pandemic have highlighted more than ever the importance of responsible crisis management and sustainable development at enterprises.

Bad debts of 20 banks up 4.5% in 2020
Bad debts of 20 banks up 4.5% in 2020
BUSINESSicon  11/02/2021 

The non-performing loans (NPLs) of 20 local banks at the end of 2020 rose by 4.5 per cent year-on-year to VND83.4 trillion (US$3.58 billion), according to the banks’ latest financial statements.

Stocks to ride on Vietnam economic recovery in 2021
Stocks to ride on Vietnam economic recovery in 2021
BUSINESSicon  10/02/2021 

Cement, petroleum and retail stocks are those that could see strong rises in 2021.

VIETNAM BUSINESS NEWS FEBRUARY 11
VIETNAM BUSINESS NEWS FEBRUARY 11
BUSINESSicon  11/02/2021 

Ministry to boost trade defence measures in line with int’l commitments

It’s time for private economy to develop
It’s time for private economy to develop
BUSINESSicon  13/02/2021 

Professor Dr. Tran Dinh Thien, a member of the Government Economic Council talks about the important role of private economy in national economic development.

Organic Tet cakes become a hit
Organic Tet cakes become a hit
BUSINESSicon  09/02/2021 

Organic banh chung (square glutinous rice cake) sold in Ho Chi Minh City for the first time for Tet (Lunar New Year) has become very popular.

Vietnam rises two places in Bloomberg innovative economy index
Vietnam rises two places in Bloomberg innovative economy index
BUSINESSicon  10/02/2021 

Vietnam has moved up two places to 55th in the list of the world's 60 most innovative economies compiled by Bloomberg, but lags far behind Asian peers.

Novartis honored as pioneer in digital transformation in healthcare
Novartis honored as pioneer in digital transformation in healthcare
BUSINESSicon  09/02/2021 

Novartis is the sole pharmaceutical firm among a total of 34 units that were honored for their efforts and outstanding contributions to the Digital Transformation of the Healthcare Sector in 2020, at the National Digital Transformation Congress.

The poor, as well as businesses, fall into 'black credit' trap
The poor, as well as businesses, fall into 'black credit' trap
FEATUREicon  09/02/2021 

The poor, who lack financial information and knowledge, are often hurt by black credit. But many businesspeople have also become victims.

 
 
 
Leave your comment on an article

OR QUICK LOGIN