25 Nov 2021
Vietnam is forecast to be the fastest-growing internet economy in Southeast Asia over the coming decade. This is according to the e-Conomy SEA 2021 report by Google, Temasek, and Bain, Southeast Asia’s Internet economy research program.
Moreover, the report forecasts Vietnam’s overall internet economy may hit US$57 billion in value with a compound annual growth rate (CAGR) of 29%.
The country’s internet economy is predicted to rank second in Southeast Asia, reaching US$220 billion in gross merchandise value (GMV).
Despite a 45% drop in GMV of online travel in 2020-21, the sector is forecast to rise 44% by 2025. In addition, there was double-digit growth in GMV for e-commerce, transport and food, and online media during the same timeframe, with these industries due to remain on an upward trajectory towards 2025.
Since the start of the year. Vietnam has seen an increase of 8 million digital consumers, with 99% planning to continue using online services after the pandemic.
With strong growth fundamentals and a burgeoning digital ecosystem, Vietnam is still an attractive innovation hub, appealing to foreign investment in the digital market.
The coronavirus crisis has set the trend for increasing digital consumption in the country’s e-commerce market, registering the fastest rate of growth in Southeast Asia. Vietnam is the third-largest e-commerce market in Southeast Asia, behind Indonesia and Thailand.
Consumer demand for online purchases has increased considerably since the start of the pandemic. Over 70% of the country’s population has internet access; 50% are regular online shoppers; and 53% have utilised e-wallets or online payments.
As a result, many retailers have embraced digital tools, with 99% now accepting digital payments and 72% implementing digital lending solutions. The industry has received substantial government investment and support, being an important factor in Vietnam’s internet economy.