Vietnam's digital economy to reach US$14 billion this year

Vietnam's digital economy is expected to reach US$14 billion in 2020, a year-on-year increase of 16%, and will likely reach US$52 billion in 2025, re-accelerating to nearly 29% in compound annual growth rate, according to a report from Google, Temasek and Bain & Company.

Source: Internet

Source: Internet

According to the report, In Vietnam, with its various stages of social distancing, users turned to the internet for solutions to their sudden challenges. A significant number tried new digital services: 41% of all digital service consumers were new (higher than the SEA average), with 94% of these new consumers intending to continue their behaviour post-pandemic.

E-commerce has driven significant growth in the country, at 46%, alongside strong growth across most sectors, except for travel, it said.

The report also said that Southeast Asia’s digital economy remains resilient at According to the report, In Vietnam, with its various stages of social distancing, users turned to the internet for solutions to their sudden challenges. A significant number tried new digital services: 41% of all digital service consumers were new (higher than the SEA average), with 94% of these new consumers intending to continue their behaviour post-pandemic.Indonesia and Vietnam continued to grow at double-digit rates, and Singapore remains a regional enabler for growth, despite short term GMV decline due to the online travel sector.

The report, which covered Indonesia, Malaysia, Vietnam, Singapore, Thailand and the Philippines, showed that Internet usage in the region continues to multiply, with 40 million new users this year alone. That pushed the total number of internet users in these Southeast Asian countries to 400 million or nearly 70 % of the population.

The coronavirus brought about a permanent and massive digital adoption spurt, with more than one in three digital service consumers (36% of total) new to the service. Of the number, 90% intend to continue their newfound habits post-pandemic, it said.

Many of the new users came from non-metropolitan areas in Malaysia, Indonesia and the Philippines.

The report looked at seven internet economy sectors in Southeast Asia, including e-commerce, transport and food delivery, online travel, online media, financial services, health technology and education technology, with health and education technology added to the 2020 version.

E-commerce is expected to grow by 63% to US$62 billion in 2020 and is poised to hit US$172 billion in 2025.

Digital financial services are also gaining momentum as more small-and-medium-sized businesses have become receptive to accepting online payments. Digital payments are set to grow from US$600 billion in 2019 to US$620 billion in 2020 and could reach US$1.2 trillion by 2025.

The health technology and education technology sectors received a boost from the pandemic as many people turned to online health consultations while schools shifted to remote learning. Investments in those sectors are growing.

Online travel and transport sectors were hit the hardest as the pandemic ground international travel to a halt while many people began to work from home or became concerned about sharing transport. Still, the report predicted online travel to rebound to US$60 billion by 2025.

VNA

Other News

SBV raises short-term capital lending cap to 40%

SBV raises short-term capital lending cap to 40%

The new circular will help credit institutions have more room to provide capital to businesses and investment projects to support high economic growth in the next few years, while increasing flexibility in the SBV’s monetary policy management.

Business confidence in Vietnam rebounds strongly: UOB

Business confidence in Vietnam rebounds strongly: UOB

The study found that 85% of Vietnamese enterprises reported positive business sentiment, a sharp increase from 48% in 2025, when business confidence was weighed down by uncertainties surrounding US tariff policies and related trade developments.

Bac Ninh seeks high-quality foreign investment for sustainable growth

Bac Ninh seeks high-quality foreign investment for sustainable growth

According to Vice Chairman of the provincial People’s Committee Pham Van Thinh, the province aims to maintain stable and sustainable growth, improve the competitiveness of both the economy and local businesses, and make better use of free trade agreements (FTAs) to expand and diversify export markets.

Green building trend flourishes in Ho Chi Minh City's real estate landscape

Green building trend flourishes in Ho Chi Minh City's real estate landscape

The International Finance Corporation (IFC) highlighted the city's dominance in green-certified building floor space in Vietnam, reflecting the rapid expansion of the green building market with 780 completed green buildings encompassing over 18.69 million sq.m by 2025, predominantly certified by EDGE and LEED.

UK supports Vietnam in wind power and green finance development

UK supports Vietnam in wind power and green finance development

The United Kingdom officially announced two new climate cooperation initiatives to support Vietnam in its energy transition and green growth journey. These programs focus on offshore wind power development and the creation of a sustainable green financial ecosystem.

Ample room remains for Vietnam–India logistics cooperation

Ample room remains for Vietnam–India logistics cooperation

The GTTCI expert noted that alongside logistics and integrated warehousing, e-commerce is expected to be a particularly high-growth sector in the coming years. He described it as a multi-billion-dollar market with significant untapped opportunities for cooperation between Vietnam and India.

Exports gain momentum from high-tech growth drivers

Exports gain momentum from high-tech growth drivers

According to the Ministry of Industry and Trade, Vietnam’s exports reached 215.66 billion USD in the first five months of 2026, up 19.5% year-on-year. Twenty-six export items generated more than 1 billion USD in revenue each, including seven with turnover exceeding 10 billion USD.

Vietnam–China crossings see spike in ASEAN fresh produce

Vietnam–China crossings see spike in ASEAN fresh produce

Since the start of the summer harvest season, China's two major border gates with Vietnam, Youyi Guan in Pingxiang and Beilun 2 Bridge in Dongxing, have entered their peak period for handling imports of fresh agricultural and seafood products from member states of the Association of Southeast Asian Nations (ASEAN).

Cargo handling operations at Berths 3 and 4 of the Hai Phong International Gateway Port. (Photo: VNA)

AI reshapes logistics, raising bar for workforce skills

According to the Vietnam Logistics Business Association (VLA), the logistics sector will require around 2.2 million workers by 2030, including 1.6 million employees for logistics service providers and nearly 600,000 personnel supporting logistics operations in manufacturing and trading enterprises.

Robust dispute resolution framework key to Vietnam's IFC ambitions

Robust dispute resolution framework key to Vietnam's IFC ambitions

The development strategy for VIFC-HCMC envisions a comprehensive financial ecosystem encompassing green finance, carbon credits, financial technology (fintech), blockchain technology, digital assets, digital banking and other innovative business models. These highly internationalised sectors involve complex cross-border transactions and sophisticated legal structures.