return icon

Vietnam should redefine scope and scale of the digital economy

The current method of calculating the scale of the digital economy only reaches the core, while digital transformation is spreading strongly into many industries and fields.

That is the opinion raised by Dr. Can Van Luc, Chief Economist of the Bank for Investment and Development of Vietnam (BIDV), at a recent seminar.

Việt Nam nên định nghĩa lại phạm vi và quy mô kinh tế số

Dr. Can Van Luc, Chief Economist of the Bank for Investment and Development of Vietnam (BIDV).


Luc said the criteria and measurement of the digital economy in Vietnam are still simple. He said the Ministry of Information and Communications has made a preliminary calculation of the digital economy, but it is not enough, because this result is only measured in terms of the core economy (ICT). Meanwhile, digital transformation has been taking place in all sectors of the economy.

According to Luc, the scale of Vietnam's digital economy is much larger. The proof is that with the banking industry, revenue from digital payments accounts for 20% of this segment. Meanwhile, the digital payments sector should clearly be counted as part of the digital economy.

In fact, each agency and organization has its own way of understanding and statistics about the scale of Vietnam's digital economy.

According to the ICT White Paper 2021 of the Ministry of Information and Communications, by the end of 2020, the total revenue of Vietnam's IT - electronics and telecommunications industry was 124.7 billion USD.

This revenue consisted of the hardware and electronics industry (111 billion USD), software industry (5.4 billion USD), digital content industry (888 million USD) and IT services (7. 3 billion USD).

Meanwhile, at a recent talk on digital economy, a representative of the Department of E-commerce and Digital Economy (Ministry of Industry and Trade) cited indicators on e-commerce development related to the growth of Vietnam's digital economy.

According to the Ministry of Industry and Trade, since 2016, the growth rate of e-commerce in Vietnam is 25-30%/year. B2C revenue of Vietnamese e-commerce rose from 5 billion USD in 2016 to 11.8 billion USD in 2020.

Việt Nam nên định nghĩa lại phạm vi và quy mô kinh tế số

E-commerce is booming in Vietnam. Photo: Trong Dat


The representative said that by 2025, the scale of B2C revenue in Vietnam's e-commerce will be 35 billion USD, accounting for about 10% of the country’s retail sales.

From an international perspective, reports from Google, Temasek and Bain & Company only mention Vietnam's Internet economy. Accordingly, the total value of Vietnam's Internet economy in 2021 is expected to reach 21 billion USD, up 31%.

Forecasts by Google, Temasek and Bain & Company show that by 2025, the entire Internet economy in Vietnam will be worth 57 billion USD. The compound annual growth rate (CAGR) will be 29%.

With these various perspectives, it can be seen that there are many different interpretations when it comes to Vietnam's digital economy.

The narrow meaning of digital economy is the field of IT – Communication, including the production of IT equipment (hardware, software), semiconductor equipment, telecommunications and Internet services (digital content), data processing.

In a relatively narrow sense, the digital economy can be understood to include the ICT sector and industries and business models associated with digital technology (digital services, online platforms, a part of the sharing economy).

Meanwhile, the digital economy in its broad meaning consists of all industries and sectors of the economy formed and taking place on a digital platform (including traditional economic sectors).

Digital economy in a broad sense also includes industries and fields that use digital technology such as e-commerce, digital tourism, digital health, digital agriculture, digital education and e-government.

Dr. Can Van Luc said that Vietnam needs to measure the size of the entire digital economy. In particular, the first thing to do is to give a clear definition of the scope and scale of the digital economy.

Trong Dat

Three scenarios to help the digital economy make a breakthrough by 2025

Three scenarios to help the digital economy make a breakthrough by 2025

Under the normal development scenario, the Vietnamese digital economy will only reach 10.5 per cent of GDP by 2025.

E-commerce - important pillar of Vietnam’s digital economic development

E-commerce - important pillar of Vietnam’s digital economic development

The Fourth Industrial Revolution is taking place around the world with a boom in digital technology, creating great opportunities for but also challenges to the development of each country, enterprise, and person.



Additionally-registered and share-purchased FDI soars sharply in first half of 2022

Despite newly-registered FDI dropping in the first half of the year, additionally-registered and share-purchased investments increased significantly on-year.

Vietnam joins hands with France to renovate Hanoi’s Long Bien bridge

Vietnamese and French experts will join hands to renovate Hanoi City’s deteriorating Long Bien Bridge in the coming months.

Lessons learned from urban railway projects

The urban railway projects that have been and are under construction are all behind schedule, so the total investment must be adjusted.

Prices hit record high, Vietnam earns big money from catfish

Export prices have been escalating in all markets and hitting new records in the US. Vietnam’s catfish export turnover is expected to reach $2.6 billion this year, the highest in history.

Phu Dien Cham Tower in Vietnam sets world record

The central province of Thua Thien – Hue on June 27 held a ceremony to mark WorldKings’ recognition of Phu Dien Tower built by the Cham people as a world record.

Explosive e-commerce growth drives demand for logistics

The rapid growth in e-commerce is driving an unprecedented increase in demand for logistics services, including express delivery services, according to industry insiders.

Local authorities warned of easy discipline when receiving FDI

Experts have pointed out that many localities accept small-scale foreign-invested projects which don’t have much significance to the localities, and allocate too much land to these projects.

Cashew industry faces huge challenges

Vietnam exported over 206,000 tonnes of cashew nuts worth 1.19 billion USD in the first five months of 2022, down 7.81% in volume and 6.81% in value, the Vietnam Cashew Association (VINACAS) reported.

After failed deal with MobiFone, AVG finds new owner

AVG has changed hands, but it has not made an official announcement about the deal.

Hue's Dong Ba Market revamped to lure tourists

Returning to Thua Thien Hue after over two years of lockdown, Luu Hoang Long and his wife, a Vietnamese Australian, chose first to visit Dong Ba Market, the biggest traditional local shopping centre in the ancient royal city of Hue.

Retail giants to sell low-cost products

With powerful financial resources, big retailers are organizing retail chains that sell a wide variety of lower priced goods.

Five directions for internet development in Vietnam

Deputy Minister of Information and Communications Pham Duc Long pointed out five major directions for internet development with an aim of creating a safe, modern and humanitarian digital society at the VNNIC Internet Conference 2022 last week.

Vietnam proposes to issue ID cards to people without Vietnamese nationality

Non-Vietnamese nationals living in Vietnam will likely be granted an electronic identification account to perform public administrative procedures.

VN, Hungary’s parliaments sign new cooperation agreement

A new cooperation agreement between Vietnam and Hungary’s national assemblies was assigned by National Assembly (NA) Chairman Vuong Dinh Hue and his Hungarian counterpart László Kövér in Budapest on Monday.

Australia pledges to continue fostering strategic partnership with Vietnam

Australian Foreign Minister Penny Wong has affirmed that her nation always attaches importance to Vietnam's role in the region, and pledges to continue strengthening its strategic partnership with the Southeast Asian nation.