The digital economy is expected to contribute 16 percent of Viet Nam’s GDP in 2023, according to a decision introducing an action plan for the National Committee on Digital Transformation.

For Vietnam to fully tap into the digital future, experts say institutions and policies must be reformed to reflect Government commitments.

Vietnam’s digital economy saw the gross merchandise value (GMV) reaching US$23 billion last year, with e-commerce making up over 60%.

Vietnam’s digital economy is predicted to continue growing with a CAGR (compound annual growth rate) of 31 percent with value reaching $49 billion by 2025, according to a report about e-commerce.

The digital economy in Vietnam has strong growth potential, but faces a number of significant hurdles, including losses in tax revenue, infrastructure challenges, and vast carbon emissions.

'Going together’ is one of the principles the Ministry of Information and Communications (MIC) has suggested to technology firms to reach out to the world market.

Vietnamese enterprises have begun allocating a budget for digital transformation, which shows heightened awareness of the need for the process.

Vietnam is believed to be a lucrative market for digital economy with the second fastest growth pace in the world last year, after India.

The two-year pandemic changed Vietnamese shopping habits and boosted e-commerce.

The Vietnamese Government has asked ministries and localities to focus on promoting the development of digital finance and digital economy in 2023.

Vietnam is speeding up the development of the digital economy, considering this a "breakthrough" step to promote the country's economic growth in the context of the 4th industrial revolution.

The potential of Vietnam's digital economy is estimated at US$40 billion, but only a small part of it has been exploited.

According to the e-Conomy SEA report 2022, 83% of investment funds expect the number of investment projects in Vietnam will continue to grow in the 2025-2030 period.

Vietnam’s e-commerce sector has enjoyed impressive growth in recent years, with the market scale projected to increase to US$49 billion, even $57 billion by Google, by 2025, from only $4 billion in 2015.

Vietnam’s digital economy is the fastest growing in Southeast Asia, with expected gross merchandise value growth rate of 28 percent, from US$18 billion in 2021 to US$23 billion this year, according to the report of Google, Temasek and Bain & Company.

Major tech companies are looking to expand in Vietnam, on the back of strong hardware export and IT figures for the country's telecom industry so far this year.

Huy Nguyen, vice chairman of the Vietnam Blockchain Association, said Vietnam has become an emerging market for blockchain thanks to its achievement in digital transformation and digital economy.

Vietnam is not only an exciting market for the application of Blockchain technology in the digital era, but also one of the leading countries in encouraging research and application of new technology in everyday life.

Under the national post development strategy, which has received the Prime Minister’s approval, the postal service will become an essential infrastructure of the country and the digital economy, especially e-commerce, by 2025.

Deputy Minister of Information and Communications Nguyen Huy Dung said Vietnam has vowed to develop a digital economy and digital society.