Vietnam's digital economy continues to show robust double-digit growth, primarily fuelled by e-commerce and online travel, as noted in a recent report by Google, Temasek, and Bain & Company. 

The e-Conomy SEA report, entitled “Profits on the Rise, Harnessing SEA’s Advantage,” projects Vietnam’s gross merchandise value (GMV) to grow at a 16% compound annual growth rate, reaching $36 billion by 2024, with online travel and e-commerce being the main contributors. 

Indeed, online travel is forecast to increase by 16% annually, reaching $5 billion in 2024, making a substantial impact on the total GMV.  

Additionally, Vietnam is at the forefront of online media growth in Southeast Asia, with its GMV expected to hit $6 billion in 2024 (a 14% CAGR) and grow to $11 billion by 2030, Vietnam Plus reports. 

Furthermore, the ride-hailing market in Vietnam is becoming more competitive, especially with the rise of local companies and the introduction of electric vehicle (EV) options. The GMV for transport and food delivery is projected to reach $4 billion in 2024, a 12% rise compared to the previous year. 

Marc Woo, Google Asia-Pacific’s Managing Director for Vietnam, highlighted that Vietnam's digital economy has experienced strong and consistent growth over the past five years, with 2024 further reinforcing this potential. 

He also noted that Vietnamese users have shown a growing interest in AI this year, and expressed encouragement at the Vietnamese government’s focus on prioritising this sector. 

The report also notes the high demand and interest in AI within Vietnam’s urban centres, especially in Ho Chi Minh City and Da Nang, which are at the forefront of AI-related interest in the country. The education, marketing, and healthcare sectors are the main drivers of AI-related searches in Vietnam.

Moreover, the report provides an update on the digital economic trends across six Southeast Asian countries, namely Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam, covering six key sectors: e-commerce, food delivery services, transport, online travel, online media, and financial services. 

Overall, the report projects that in 2024, the digital economy in the region will reach a GMV of $263 billion, reflecting a 15% increase from the previous year. 

Revenues have grown by 14% and are expected to reach $89 billion in 2024, indicating that the digital economy is capable of achieving both profitability and growth simultaneously, representing a significant step toward sustainable economic value.