The digital economy is booming at unprecedented speed, reshaping global business models but also raising warnings that without persistent innovation, countries may easily fall into the “middle-income trap.” This was the central message at the 25th International Conference on Electronic Business (ICEB 2025), held in Hanoi from August 21 to 25.

At the conference, scholars and experts examined both opportunities and challenges for e-business in a world where information systems are being fundamentally redefined.

According to Professor Eldon Y. Li, Honorary President of ICEB and professor at National Chung Cheng University (Taiwan, China), e-commerce has expanded two to three times compared to pre-pandemic levels. From Amazon and Alibaba to emerging platforms, online shopping has become a global habit over the past 25 years.

“Consumers now shop online as a default, and this shift not only changes individual behavior but also forces the finance and banking sector to reinvent itself,” said Professor Li.

He cited cryptocurrency as a striking example: Bitcoin, once worth only $1, has surpassed $100,000, spurring an explosion in digital transactions. Around the world, banks must digitize or risk being left behind. In China, cash has nearly disappeared within a decade, replaced by mobile payments like WeChat Pay and Alipay. Vietnam, too, is catching up quickly, with digital banking and QR code payments becoming common.

Regarding Vietnam’s prospects of building an international financial hub, Professor Li emphasized: “Vietnam has moved from a low starting point to strong growth. The potential is there, but the decisive factor is internationalization.”

From a broader perspective, Associate Professor Ta Van Loi, Rector of the School of Business at the National Economics University, stressed that digital technology not only creates new business models but also enhances customer experience, operational efficiency, and competitiveness. “History shows that the rise of the US, Europe, Japan, South Korea, and Taiwan all stemmed from innovation. Without it, nations risk being trapped in middle-income status,” he said.

He noted that even before formal policies, many Vietnamese businesses were already adopting digital technologies. Upcoming policies, including tax incentives for innovation and funding for basic research, will provide a stronger push. “This can remove bottlenecks that have long worried both enterprises and the scientific community,” he added.

Experts also warned of challenges such as cybersecurity, data integration, regulatory pressures, sustainability demands, and risks from artificial intelligence. For Vietnam, the takeaway is clear: in the face of rapid digital growth, escaping the middle-income trap requires unwavering commitment to innovation. Otherwise, the country risks being left behind.

PV