Huge potential for digital economic development in Vietnam: report
Bain & Company, in association with Tech for Good Institute – TFGI, has released a report on the platform economy in Southeast Asia, focusing on the Vietnamese market.
According to the report, O2O (offline to online) platforms such as Grab, Gojek, AirBnB, Traveloka, Shopee play an important role in the digital economy in general, making people's lives more convenient. Photo: Hai Dang
In general, the report said that Vietnam has adapted well to the digital economy, but there are still areas that have not been fully exploited and have potential for development.
According to the report, O2O (offline to online) platforms such as Grab, Gojek, AirBnB, Traveloka, Shopee play an important role in the digital economy in general, making people's lives more convenient.
In Vietnam, 8 out of 10 people said they used platforms more often than 1-2 years ago. And 77% said platforms have a positive impact on their quality of life on a daily basis.
Most respondents (from 70-90%) agreed that food orders, e-commerce, car-hailing, and digital payment services make life more comfortable, especially during the Covid-19 period.
The report also introduced a New Economic Progress Index for the region to help policymakers get an overview of the platform economy.
There are four factors used to calculate the index, including: digital infrastructure, physical infrastructure, the percentage of small and micro enterprises participating in digitization, and the percentage of people participating on the digital platform.
Combining these four factors, the report evaluates the overall index of Vietnam at 41%, with the highest score belonging to advances in digital infrastructure (51%), as 57% of the population are mobile Internet subscribers, and 77% of them use use e-wallets.
However, the report said that physical infrastructure needs to be improved. Currently, only 18% of the urban population enjoy same-day delivery of goods.
In addition, the scale of the online food industry and retail accounts for only 4% of the total food and retail market, so there is still great potential.
Vietnam has the highest number of people shopping on e-commerce platforms in the Southeast Asia region with some 49.3 million people, according to the E-commerce White Book 2021 released by the Vietnam E-Commerce and Digital Economy Agency.
E-commerce in Vietnam is estimated to grow by 53% in 2021, creating an impetus for the domestic digital economy to reach revenue of US$21 billion this year, according to a report released recently by Google, Temasek and Bain & Company.