Digital economy in Vietnam welcoming impressive growth

Economic specialists have confirmed the great potential of technological businesses as well as the digital economy in six major Southeast Asian countries, including Vietnam. Being the second fastest growing digital economy in the region, Vietnam is eager to reach further heights.

Vato, a new taxi service recently operating in Vietnam and is a typical example of a business in the digital economy. (Photo: SGGP)

Vato, a new taxi service recently operating in Vietnam and is a typical example of a business in the digital economy. (Photo: SGGP)

Accordingly, following Indonesia, Vietnam has achieved remarkable breakthroughs in its digital economy, especially in the fields of e-commerce, online tourism, online media, and e-taxi.

Standing at the second position, Vietnam’s digital economy is estimated to obtain US$12 billion this year and $43 billion in 2025. The country is also ranked the third in attracting global investment capital, gaining around $600 million from 2018 to the first half of 2019.

Although the number of investment project has decreased in 2019, the value of those projects have been much higher. Some significant cases include the international investment in MoMo, Sendo, and Topica.

This year, there are 61 million Internet users in Vietnam, many of whom are spending a large amount of time on their smartphones to communicate (accounting for 52 percent), watch videos (20 percent), play games (11 percent), and work. This is a strong and lucrative foundation for the further development of the national digital economy.

According to Mr. Rohit Sipahimalani, Head of the Temasek Investment Team, mobile technologies are gradually changing working methods and living styles as they provide more flexible chances for market approaches, continuously altering consuming models.

Experts in digital economy state that when technology ecosystems are complete, companies in the digital economy are going to change their focus from seeking new customers to caring more for current ones. Technological businesses are then ready to deliver a wide range of services and products such as promotions in the form of interactive games, attractive digital content, or live news. As a result, consumers are going to enjoy more advantages since they are able to access more options with more reasonable prices.

It is these features that make the digital economy much more popular than the traditional one in the future.

By BA TAN – Translated by Thanh Tam

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