Viet Nam is projected to continue to lead digital economy growth in the region between 2023 and 2025, according to the 8th edition of the e-Conomy SEA Report released on November 7 by Google, Temasek and Bain & Company. Despite global macroeconomic challenges, Viet Nam is projected to achieve 20% digital economy growth in two years, on par with the Philippines, followed by Thailand (17%), Indonesia (15%), Malaysia (14%) and Singapore (13%).
Viet Nam's gross merchandise value (GMV) is projected to reach $45 billion by 2025, the third highest in the region after Indonesia ($109 billion) and Thailand ($49 billion). Key drivers of Viet Nam's digital economy growth include the e-commerce sector, which is expected to grow by 22% to reach $24 billion by 2025, while the online tourism sector is expected to grow by 21% to reach $7 billion, and the online media sector is expected to grow by 15% to reach $7 billion.
Interestingly, Viet Nam is also experiencing the fastest growth in digital financial services (DFS) in the region, according to the report. Strong government support as well as investments from commercial financial institutions have been the key drivers for the country's growing digital payments growth. The growing popularity of QR codes has also accelerated this trend.
This development is expected to accelerate further, especially after the State Bank of Viet Nam emphasized the importance of using cashless payments in rural and remote areas.
According to Marc Woo, Managing Director of Google Viet Nam and Asia Pacific, the development of Viet Nam's digital economy is showing positive progress, and Google is committed to continuing to provide comprehensive support for the growth of the country's digital economy. This includes efforts to support the development of Viet Namese startups and investment in human resources training.
In particular, among the six countries in the report (Philippines, Thailand, Indonesia, Malaysia, Viet Nam, and Singapore), Viet Nam has shown outstanding performance in terms of digital economy, with its leading position in the highest growth of e-commerce in the Southeast Asian region by 2022.