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According to an industry report, Vietnam’s digital economy is projected to expand significantly to reach approximately US$ 45 billion by 2025. This forecast includes an annual growth rate of 20% between 2023 and 2025, mainly driven by expectations of strong economic growth.
The report said that Vietnam’s digital economy is not only fueling economic growth but also generating fresh employment prospects and improving the quality of life for its residents.
Although these projected figures are US$ 4 billion lower than those in the 2022 edition report, which envisions Vietnam’s digital economy leading in Southeast Asia with an annual average growth of 31% and reaching US$ 49 billion by 2025, the digital economy in Vietnam is still on track for substantial growth.
The report highlights the increasing popularity of digital payments, which are becoming more prominent due to government support and investments from commercial banks. Recent surveys indicate an increasing trend among Vietnamese users in embracing digital banking and new payment methods like mobile banking apps, e-wallets, QR code-based payments, e-commerce payment platforms, and mobile wallet debit or credit cards. In fact, approximately four out of five consumers use e-wallets at least once a week.
The increase in online payments can be partly attributed to a remarkable surge in online shopping and e-commerce, which has experienced an annual growth rate of 41% over the past three years. Digital payments now account for over 50% of the region’s transaction value.
Furthermore, Vietnam’s central bank and other national financial institutes have been actively advocating for cashless payments in rural regions. In August, the National Payment Corporation of Vietnam (NAPAS) and the Vietnam Bank for Social Policies (VBSP) jointly introduced new features on the VBSP Smartbanking application. They can now make transfers between their VBSP accounts and 45 NAPAS member banks and vice versa. They can also generate personalised QR codes to receive funds and scan QR codes from other banks for easy money transfers.
Despite fluctuating export demand, Vietnam’s manufacturing and export sectors are considered vital for growth. The total revenue of the IT industry during the first seven months was estimated at US$ 72.9 billion, reflecting a 7.1% decrease compared to the same period last year. This decline was attributed to a significant reduction in revenue from the export of hardware and electronics, which typically accounts for a substantial portion of the industry’s revenue structure.
The report also emphasises the importance of securing public investment to address infrastructure limitations, with wages and employment also playing a pivotal role in shaping the digital economy’s trajectory.
Meanwhile, the tourism industry in Vietnam is anticipated to achieve a complete recovery this year, mainly due to the rapid growth in domestic travel. The Vietnam National Authority of Tourism (VNAT) has collaborated with domestic and international partners to implement cutting-edge technologies to boost tourism activities. It launched an exhibition project that enabled people to explore art, history, and the wonders of Vietnam on an online platform. New airlines and an increase in international routes have also contributed to the sector’s recovery.
Vietnam is pursuing international collaboration to strengthen its digital economy, aiming to facilitate digital businesses’ entry into broader and more varied markets, technology transfer, and attract foreign investment. A recent example of this commitment was seen in Vietnam’s joint conference with Laos and Cambodia, where they deliberated on digital economic development trends and their capacity to boost trade and investment across the nations. They also addressed the opportunities and challenges posed by digital transformation in enhancing trilateral relations and discussed strategies to advance their collaborative endeavours in the digital age.
