HANOI, Oct. 7 (Xinhua) -- Vietnam’s digital economy is the second fastest-growing market in Southeast Asia, according to a recent report by Google, Temasek and the U.S.-based global management consultancy Bain.
The internet economy of Vietnam is estimated to reach a value of 12 billion U.S. dollars in 2019, with an annual growth rate of 38 percent since 2015, and expected to total 43 billion U.S. dollars by 2025, local online newspaper VnExpress cited the e-Conomy Southeast Asia 2019 report as reporting on Monday.
The annual report assesses the region’s six largest markets namely Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, across five sectors of online travel, online media, ride hailing, e-commerce and digital financial services.
Indonesia led the region, which has grown at an average rate of 33 percent a year since 2015, with an average growth rate of 49 percent a year.
With the gross merchandise value traded over the internet in Vietnam set to account for over 5 percent of the country’s gross domestic product (GDP) in 2019, the country is emerging as the most digital of all economies of the Association of Southeast Asian Nations (ASEAN), read the report.
E-commerce is a key driver behind the impressive numbers, where such homegrown marketplaces as Sendo and Tiki compete with regional players like Lazada and Shopee.
Over the last four years, Vietnam’s Internet economy has attracted almost 1 billion U.S. dollars in funding, with 2019 in line to be a record year, reflecting investors' strong confidence.
Vietnam is striving to build the digital economy to account for about 20 percent and over 30 percent of its GDP by 2025 and 2030, respectively, according to a resolution issued late September by the Political Bureau under the Communist Party of Vietnam Central Committee.