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Vietnam's digital economy grows the fastest in Southeast Asia

Vietnam's digital economy grows the fastest in Southeast Asia

Many customers have been drawn to online and livestream sales. Tens of thousands of people like and share Facebook postings, while millions of people watch YouTube channels.

Instead of visiting to stores, consumers can order stuff online, from pricey items to everyday necessities.

Vu Dai Village, noted for its fish braising, is located in Ha Nam province in the north, but locals may now sell fish to consumers around the country, including southern areas, thanks to e-commerce.

The increase in the number of online shoppers (from 30.3 million in 2015 to 54.6 million in 2021) and average shopping value per head (from $160 in 2015 to $251 in 2021) demonstrates Vietnam's robust growth in e-commerce.

Analysts predict that by2022, the numbers will have risen to 57-60 million shoppers and$260-285, respectively.

In its reports on Vietnam's e-commerce company index, the Vietnam E-commerce Association (Vecom), which surveyed 6,582 firms in 2021-2022, found a gradual growth in the number of enterprises selling products via social networks, from 28 percent in 2015 to 57 percent in 2021.

The proportion of businesses using e-commerce platforms climbed from 13% to 22%.

To increase sales, businesses have created a variety of business channels. B2B e-commerce has grown in popularity, albeit at a slower rate than B2C.

The proportion of businesses accepting orders through e-commerce platforms increased from 13% in 2018 to 29% in 2020.

In2021, more than 88 surveyed businesses confirmed orders via mobile sales apps (it was 45 percent in 2018).

In 2021, 18% of businesses used websites/e-commerce applications for export activity (32 percent for large enterprises and 17 percent for small and medium enterprises - SMEs).

Year after year, the proportion of businesses that use electronic signatures, contracts, and voices grows.

The digital economy is expanding rapidly.

According to Google, Temasek, and Bain & Company, Vietnam will have the fastest growing digital economy in Southeast Asia between 2022 and 2025.

They estimate that Vietnam's digital economy would be worth $49 billion by 2025, with an annual growth rate of 31% from 2022 to 2025.

The value of e-commerce climbed from $5 billion in 2019 to $14 billion in2022, with a growth rate of 37% predicted to reach $32 billion by 2025.

According to the Ministry of Information and Communications (MIC), the proportion of SMEs using digital platforms has surpassed 30%, and the ratio of digital economy added value to GDP in 2022 is expected to be 14 percent, up from 12 percent in 2021.

The number of digital technology firms is expected to reach 70,000, a 6,200-firm increase from December 2021, or 0.7 firms per 1,000 persons.

The government's Resolution 01 proclaims that 2023 is "the year of digital data", "the year for developing and using data to create new value".

Vietnam aspires to have the most advanced digital infrastructure in Southeast Asia, with broadband internet available in all communes.

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According to the European Center for Digital Competitiveness (ECDC), Vietnam will have achieved the most progress in East Asia and the Pacific in terms of digital transformation by 2021.

Vietnam had a score of 339, with the most improvement in both index areas (ecosystem index increased by 139 and thinking index by 200)

Most governments that have made significant progress in digital transformation have set lofty goals and developed thorough strategies to achieve those goals.

The Vietnamese government has authorized a national digital transformation initiative that aims to make the digital economy account for 30% of GDP by 2030.

Nguyen Manh Hung, Minister of Information and Communications, stated that 2020 would be the year to begin digital transformation, 2021 would be the year for digital transformation rehearsal, 2022 would be the year of general offensive in digital transformation, and 2023 would be the year when digital transformation would bring in practical values.

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