Viet Nam’s digital economy is expected to grow 20 percent a year in the 2023-2025 period and is on track to reach around US$45 billion by 2025, the fastest pace in Southeast Asia along with the Philippines, an annual industry report showed.

The report, published by Google, Singapore state investor Temasek Holdings, and global business consultant Bain & Company, said, digital payment continues to grow in Viet Nam driven by strong support from the government, investment from commercial banks, and the widespread popularity of QR codes.

The trend is projected to accelerate as the country’s central bank promotes cashless payments in rural and remote areas, it added.

Full recovery in the travel sector is expected this year, driven primarily by sharp growth in domestic travel. The launch of new airlines and an increase in the number of international routes have enabled this uptick.

The weakening of export demand severely moderated growth momentum in the first half of 2023.

While Viet Nam will continue playing a significant role as global companies diversify their supply chains, securing public investment to address infrastructure constraints will be key to unlocking growth, the report noted. 

Wages and employment will continue to have a cascading impact on the digital economy. 

The report also said the Southeast Asian region’s internet economy is seen at US$295 billion by 2025, down from a previous estimate of US$330 billion.

The region’s internet economy is expected to grow 11 percent year-on-year in 2023. The region of 11 countries has more than half a billion people, with a predominantly young population, widespread smartphone usage, and a growing middle class, making it one of the world’s fastest growing internet markets.

VGP