Vietnam has experienced the most rapid growth in its digital economy across Southeast Asia for the past two years. This update was shared by Deputy Minister of Industry and Trade, Nguyen Sinh Nhat Tan, during the Vietnam Digital Industry and Trade Summit held in Hanoi on Tuesday.
Tan highlighted that e-commerce and the digital economy are significant contributors to Vietnam’s socio-economic progress. He referenced a report by Google, Temasek, and Bain & Company, which indicated that Vietnam has led the region in digital economic growth for 2022 and 2023 and is anticipated to maintain this lead through 2025 alongside the Philippines.
The country’s digital platforms are projected to see a 20 percent annual growth in gross merchandise value (GMV), increasing from $30 billion currently to an estimated $45 billion by 2025. E-commerce is expected to drive this growth over the next two years.
The Ministry of Industry and Trade (MoIT) has actively promoted digital transformation within the industry and trade sectors by implementing various policies and strategies. These initiatives have included the advancement of e-government within the ministry and the promotion of digital economic and e-commerce development across the country.
As a result, Vietnam’s e-commerce sector grew by 20 percent last year, with a consistent growth rate of 16-30 percent in recent years. MoIT’s data predicts the e-commerce market will reach $20.5 billion this year.
Looking ahead, Deputy Minister Tan is optimistic that Vietnam’s e-commerce market growth will propel economic advancement and aid businesses in their recovery efforts. He stressed the importance of developing new business models and strategies to help companies rebound and expand post-challenges.
For sustainable growth in the digital economy, Tan underscored the need to identify technological trends for digital transformation and to devise strategies to enhance e-government in crucial sectors like energy, smart manufacturing, logistics, and sustainable e-commerce, while also addressing the digital divide.
At the summit, Le Hoang Oanh, director of the MoIT’s Vietnam E-commerce and Digital Economy Agency (iDEA), suggested several measures in key areas. For digital government, the focus should be on creating a unified digital infrastructure, generating socio-economic data for governance, and establishing an open, secure, and confidential database.
To foster the digital economy, initiatives should include establishing an electronic contract framework, a paperless trading platform, developing digital economic indicators, and enhancing smart power grids and network security.
For societal digital development, strengthening consumer protection in e-commerce, setting a code of conduct for online businesses, and prioritizing in-depth digital skill training for officials and university students are crucial. The aim is to provide digital skills and e-commerce training to one million individuals from various businesses within the next five years.
