Vietnam’s digital economy to reach 14 billion USD this year

- Vietnam's digital economy is expected to reach 14 billion USD in 2020, a year-on-year increase of 16 percent, and will likely reach 52 billion USD in 2025, re-accelerating to nearly 29 percent in compound annual growth rate, according to a report from Google, Temasek and Bain & Company. With its various stages of social distancing, Vietnam turned to the internet for solutions to sudden challenges and a number of users tried new digital services, says the report. E-commerce has driven significant growth in the country, at 46 percent, alongside strong growth across most sectors, except for travel, it said.

The report also said that Southeast Asia’s digital economy remains resilient at 100 billion USD in gross merchandise value (GMV) despite headwinds and is on track to cross 300 billion USD in GMV by 2025. Indonesia and Vietnam continued to grow at double-digit rates, and Singapore remains a regional enabler for growth, despite a short term GMV decline due to the online travel sector.

Source: VOV5