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Vietnam has the fastest digital economic growth rate in Southeast Asia in 2023 (compound annual growth rate - CAGR for the period 2022-2023 is 19%) and will continue to be one of the fastest growing digital economies in the period 2023-2025.
This assessment was recently published by Google, Temasek and Bain & Company in the 8th Southeast Asia Digital Economy Report with the theme "Conquering New Heights: Towards a Journey of Profitable Growth".
Fastest growing in Southeast Asia
The report shows that the region’s gross merchandise value continues to grow and is expected to reach US$218 billion, up 11% year-on-year. Revenue from the Southeast Asian digital economy is expected to reach US$100 billion this year. Vietnam continues to have the fastest digital economic growth rate in Southeast Asia and is forecast to maintain this position in 2025 (tied with the Philippines). Vietnam’s gross merchandise value is expected to grow at a compound annual growth rate of 20%, from US$30 billion in 2023 to nearly US$45 billion in 2025. Growth in the value of goods in the next two years will be led by e-commerce, online travel and digital payments, which will play an important role.
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Self-pay for purchases at Fahasa Bookstore, District 7, HCMC. Photo: HOANG HUNG |
“Vietnam’s digital economy has the potential to grow even further as the popularity of digital applications and a highly skilled, self-trained domestic technology workforce are driving innovation,” said Fock Wai Hoong, Head of Southeast Asia at Temasek Group.
Meanwhile, Mr. Andrea Campagnoli, Head of Office and Founding Partner of Bain & Company in Vietnam, said: “It is remarkable that the growth rate and revenue of the Southeast Asian digital economy continue to maintain double-digit growth momentum, with revenue expected to surpass the US$100 billion mark by 2023. In particular, Vietnam shows positive growth in investment volume in the first half of 2023 compared to last year.”
Support from online payment
In the development of the digital economy, online payment is indispensable. In which, QR code payment has become the most popular trend and has an increasing proportion. According to the Napas payment system, in the third quarter of 2023, QR code payment via VietQR has doubled in quantity and reached more than 100 million transactions/month.
A representative of the Payoo online payment system informed: On the Payoo system, QR code payments on the online platform in the third quarter of 2023 increased by 6% in quantity and 30% in value compared to the previous quarter. At the counter, QR code payments increased by 8% in quantity and nearly 20% in value, reaching an increase of 44% compared to the first 3 months of the year. In particular, if QR codes were previously only popular in shopping and self-employed dining transactions of stores, they are now also popular in the field of bill payment. The number of QR code transactions for bill payment in the third quarter of 2023 increased 2.6 times compared to the second quarter of 2023.
Mr. Nguyen Ba Diep, co-founder of MoMo e-wallet, commented: “With their sensitivity and quick grasp of trends and modern technology, young people are a key factor in the journey to promote digital transformation and digital payment trends in Vietnam. By actively using digital payments in their daily lives, young people are contributing to creating and spreading a new consumer trend and forming a digital economy.”
Currently, there are about 2.5 million users paying via MoMo for more than 90% of public administrative services on the National Public Service Portal and 1 million users for public services. At the same time, 4,260 schools nationwide, including most schools in Ho Chi Minh City, accept tuition payments via MoMo. Similarly, 148 hospitals and clinics nationwide, including all major hospitals in Ho Chi Minh City, also implement payments via MoMo.
Based on this data, Mr. Nguyen Ba Diep emphasized that young people are the core force in promoting the digital economy, contributing to the implementation of the policy of accelerating national digital transformation. Mr. Marc Woo, Managing Director, Vietnam, Google Asia Pacific, said that Vietnam's digital economy is developing in the right direction, and important areas are expected to continue to develop despite facing many difficulties.
Sectors that promote digital economy
E-commerce in Vietnam is expected to grow by 11% from 2022-2023 and grow at a compound annual growth rate of 22% through 2025, targeting a gross merchandise value of US$24 billion in 2025. The tourism industry is expected to fully recover this year, driven largely by strong domestic tourism growth. Online travel grew by 82% last year and is expected to grow at a compound annual growth rate of 21% from 2023-2025, with a projected gross merchandise value of US$7 billion. Other key sectors that continue to grow and contribute to Vietnam’s digital economy include transportation, food (food delivery services), and online media.
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