70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Vietnam’s digital economy to value US$220 billion by 2030
Phi Nhat 22:36, 2021/11/10
Digital financial services have seen healthy growth, especially in the adoption of e-wallets and account-to-account, fueled by both merchant adoption and consumer usage.

Vietnam’s digital economy is estimated to grow 11 times to reach US$220 billion in gross merchandise value (GMV) by 2030, the highest one among the Southeast Asian (SEA) countries.

 Source: Google, Temasek and Bain & Company

This year, SEA internet economies including Vietnam are forecast to enjoy double-digit growth, according to the latest e-Conomy SEA Report-Roaring 20’s: The SEA Digital Decade released by Google, Temasek and Bain & Company.

The size of Vietnam’s digital economy would be $21 billion in GMV, a 31% year-on-year increase  underpinned by a 53% growth in e-commerce, despite the shrinking online travel market due to ongoing travel restrictions.

Looking at 2025, the country’s internet economy will likely reach $57 billion in value, growing at 29% compound annual growth rate (CAGR). 

From the start of the pandemic to the first half of 2021, the country has seen eight million new digital consumers with more than half of them coming from non-metro areas. Stickiness of adoption remains high as digital consumption has become a way of life. About 97% of the new consumers are still using the services and 99% intend to continue going forward. 

Pre-pandemic users, those who used the services before the pandemic, have consumed an average of four more services since the pandemic, and amongst all users, satisfaction with the services sit at 83% across verticals. 

In Vietnam, digital financial services are also becoming critical enablers, with 99% of digital merchants now accepting digital payments and 72% having adopted digital lending solutions. Many of them are also embracing digital tools to engage with their customers, with 72% expecting to increase usage of digital marketing tools in the next five years, according to the report.

Some 30% of surveyed digital merchants in Vietnam believe that they would not have survived the pandemic if not for digital platforms. While digital merchants use an average of two digital platforms, profitability remains a top concern. 

  Source: Google, Temasek and Bain & Company

The report highlighted digital consumption is now ingrained as a way of life in SEA. Early adopters have deepened usage-pre-pandemic users are consuming four more digital services than they did before 2020-and the 60 million consumers who joined since the pandemic started are here to stay, with nine in 10 consumers who tried a new digital service in 2020 continuing to use the service in 2021.

While SEA’s internet economy was resilient in 2020, a resurgence in 2021 has propelled the region upwards to $170 billion GMV. E-commerce, food delivery and digital financial services remain primary growth drivers and the internet economy is expected to reach nearly $360 billion by 2025.

Continued shifts in consumer and merchant behaviour, matched with strong investor confidence, have ushered SEA into its ‘Digital Decade’ - and the region is on its way towards $1 trillion GMV by 2030.

Florian Hoppe, Paner and Head of Digital Practice in Asia-Pacic, Bain & Company said: “The region has generated tremendous investor interest over the past two years, and we believe the ‘roaring 20s’ will really put Southeast Asia’s internet economy on the global map, as it chas a unique growth path and reshapes all industry sectors in the region. Managing this growth sustainably in the interest of all stakeholders will be a key mission for all ecosystem paicipants."

TAG: digital economy Vietnam internet economy online payment digital consumers
Other news
16:01, 2024/02/26
VCCI hosts 14 international investors to study Vietnam's potential
With a population of 100 million, a young workforce, a stable political system and attractive policies, Vietnam has attracted the interest of many global companies.
15:32, 2024/02/22
Enhanced local trade finance in Vietnam: A potential US$55 billion annual trade boost
International trade is an important driver of productivity, jobs, and development – but to be effective, adequate trade finance is essential.
16:31, 2024/02/15
Vietnam’s corporate bond market could grow to US$100bn: Finance Minister
The Ministry of Finance is expected to establish a separate bond market, strengthen inspection and auditing, and create conditions for businesses to raise capital.
20:08, 2024/02/14
Vietnam’s banking sector set to turn the corner in 2024
The fact that the Vietnamese dong depreciated by a modest 2.9% year on year in 2023 indicated high stability and improved foreign exchange reserves compared to the end of the previous year.
14:02, 2024/02/02
Vietnamese Gov’t remains steadfast in upgrading stock market to emerging status by 2025
The Ministry of Finance is expected to ease pre-transaction deposit requirements for foreign investors this year.
12:06, 2024/01/31
USD/VND exchange rate set to stabilize in second half of 2024
The central bank achieved some success in managing the foreign exchange market as the USD/VND exchange rate maintained a sliding rate of about 3.1% in 2023, despite some periods approaching the VND24,800 threshold.