With a young population, a strong ability for digital transformation among consumers, and increasing digital consumption, Vietnam is anticipated to achieve digital economic growth of US$45 billion by 2025.
Vietnam's digital economy is expected to grow by 20% per year throughout the 2023 to 2025 period
According to a report released by Google, the nation’s digital economy is expected to grow by 20% per year throughout the 2023 to 2025 period and is on track to reach about US$45 billion by 2025, the fastest in Southeast Asia.
According to details given by Nguyen Binh Minh, member of the Executive Committee of the Vietnam E-Commerce Association (VECOM), this prediction has a solid basis as it shows the results of the robust e-commerce development process over recent times. This is despite being greatly impacted by the difficult economic situation following the global COVID-19 pandemic.
The infrastructure platform has been continuously upgraded, thereby creating many fresh opportunities for businesses to participate within the market.
Furthermore, the country’s legal corridor has also recorded many timely adjustments, which has created optimal conditions for e-commerce to develop smoothly and in the right direction.
With many driving forces in terms of international economic relations and the nation’s growing position in the market, the Vietnamese digital economy will certainly continue to grow rapidly and stably over the coming years, Minh said.
Firms have also become confident in the strong boom recorded in e-commerce coupled with the development of the digital economy. In line with this, Vietnamese digital platforms are increasingly proving their ability to meet the development needs of local businesses.
The digital transformation capacity of businesses has therefore made significant progress, with many technology businesses boasting very good digital evolution capabilities, he continued.
The increasing application of information and communication technology in general and new technologies amid Industry 4.0 such as Artificial Intelligence (AI), the Internet of Things (IoT), and Blockchain shows the good adaptability of Vietnamese businesses to the changing factors within the digital economy and their ability to innovate is clearly improving.
The VECOM representative also underlined the need to continuously fine-tune legal regulations aimed at maintaining growth momentum whilst ensuring the health and sustainability of e-commerce and the digital economy.
Along with continuing to improve the legal corridor, which is an important driving force, orienting and assisting local businesses to widely apply digital technology represents a very important factor in order to help businesses grow stronger in the near future.
Moreover, it can be viewed as necessary to continue to develop and maintain the market's rapid expansion ability, such as creating optimal conditions for digital marketing and digital finance activities in the future, he added.
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