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Vietnam is the Fastest-Growing Digital Economy in Asia-Pacific

Fastest Growing Digital Economy in Asia Pacific

Vietnam is believed to be the fastest-growing digital economy in the Asia Pacific (APAC), a press release has claimed.

The country is making efforts to make digital transformation a key strategy to boost the national economy.

Over the past years, Vietnam has set ambitious goals for the digital economy, for example, contributing 30% to the country’s gross domestic product (GDP) by 2030.

The Dean of the Diplomatic Academy of Vietnam’s Faculty of International Economics, Dang Hoang Linh, said that if the sector keeps up with its current growth rate, the e-commerce market is likely to hit US$ 33 billion in value by 2025.

The release quoted a report that stated Vietnam’s Internet economy reached some US$ 12 billion in 2019 on a 38% annualised growth rate since 2015.

With the gross merchandise value (GMV) of its Internet economy accounting for over 5% of the country’s GDP in 2019, Vietnam is emerging as the most digital of all economies in the region.

E-commerce is a key driver behind the impressive numbers, where homegrown marketplaces like Sendo and Tiki compete with regional players like Lazada and Shopee.

According to another report, Vietnam will solidify its position as an e-commerce leader just behind Indonesia with US$ 100 billion and Thailand with US$ 43 billion.

Over the past year, Vietnam has built itself into an attractive destination for global investors and its efforts are paying off, tech giants like Nokia, Samsung, and Olympus have moved some operations into the country.

The high return on investment (ROI) in Vietnam’s digital-related economy is most apparent in the e-commerce sector, receiving approximately US$ 1 billion in funding, Techwireasia reported.

The sector is growing robustly, producing successful e-commerce platforms such as Tiki, Thegiodidong, and Sendo.

Vietnam’s regulators played a large part in propelling the country’s e-commerce industry forward.

A solid regulatory framework is set in place to ensure that safeguards are enacted, preventing the exploitation of the e-commerce industry.

Specific regulation was recently passed in order to create favourable conditions that can support the high growth rate of the retail e-commerce market, and at the same time, ensure a fair business environment.

In a world where virtually every industry is disrupted by technology, Vietnam’s priority to boost digitisation is a wise move, the release said. It also serves as a good exhibit of the integral role regulators play in digital-related fields such as e-commerce, AI, or fintech.

It added that ultimately, governments and businesses alike must recognise that digital transformation is inevitable. The only way forward is to embrace it and develop strategies that can best help them thrive against such a backdrop.

Another target for the country is to have at least 100,000 digital technology firms by 2030.

As OpenGov reported earlier, Vietnam needs at least 100,000 digital technology businesses over the next few years to develop the digital economy, smart cities, and e-government. With 50,000 technology firms, the IT industry maintains a 10% growth rate.

The firms will help utilise the achievements of digital technology widely in socio-economic fields and carry out national digital transformation.

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