Vietnam to be key digital hub by 2025

22 Apr 2022

Vietnam may become the second largest digital economy in South-East Asia in 2025, and the e-commerce market can attract more large-scale businesses, according to experts at an online seminar this week in Ho Chi Minh City.

They added that online businesses would be prevalent in more economic sectors in future.

General Director of AccessTrade, Đỗ Hữu Hùng, maintained e-commerce should be the initial step, followed by logistics and delivery services, in order to bolster consumer confidence and enhance the overall shopping experience.

Hùng added that with improved logistics and delivery services, Vietnam’s digital economy could account for up to 50-60% of the country’s economy in the long-term.

The findings also revealed that there were unprecedented changes in 2020 and 2021, with online businesses in the country reporting unparalleled growth in domestic and overseas markets.

The global revenue from B2C e-commerce business is forecast to increase by 1.5 times between 2019-2023, according to the ‘E-Commerce White Book 2020’, from $1.94 trillion to over $2.88 trillion, reports The Star. In addition, the report shows South-East Asia, including Vietnam, would witness an increase in growth.

According to J&T Express Vietnam director, Phan Bình, businesses need to focus on high quality products to be delivered to online shoppers, rather than having large retail spaces.

As it stands, a large number of foreign businesses have sought opportunities in Vietnam, within the ‘Think Global, Act Local’ campaign. However, online business has attracted an increasing number of firms, households and individuals in rural areas and in cities.

Moreover, online businesses in the country have been advised by experts to seek support in terms of consultations and solutions, as well as the need for larger coverage when it comes to delivery services to cater to the demand of the flourishing e-commerce sector.