Photo: weforum.org

Google, Temasek and Bain & Company on November 6 announced the 8th E-Conomy SEA 2023 report. This report updates the digital economy trends of six countries including Indonesia, Malaysia, Philippines, and Singapore, Thailand and Vietnam.

Despite fluctuations in the global macro economy, the report shows that the region's gross merchandise value (GMV) continues to increase and is expected to reach US$218 billion, up 11% over the same period last year (YoY).

The report also shows that revenue from the digital economy of Southeast Asia is expected to reach US$100 billion this year.

Vietnam leads in digital economy growth

The report clearly shows that Vietnam has the fastest digital economy growth rate in Southeast Asia for the second consecutive year (2022 and 2023) and is forecast to hold this position in 2025 (tied with the Philippines).

Vietnam's total merchandise value (GMV) is expected to reach a compound annual growth rate (CAGR) of 20%, from US$30 billion in 2023 to nearly US$45 billion in 2025.

GMV growth over the next two years will be led by e-commerce and online travel.

E-commerce in Vietnam increases by 11% in the period from 2022 to 2023 and the compound annual growth rate (CAGR) is expected to increase by 22% by 2025, aiming for a total merchandise value of US$24 billion.

The driving force of Vietnam’s e-commerce is the consumer focus on food delivery services (60 percent) and online grocery purchases (54 percent). Urban digital users in Vietnam have the highest adoption level, of which e-commerce, food and foodstuff, and groceries top the list with 96, 85, and 85 percent, respectively.

The tourism industry is forecast to fully recover this year, mainly thanks to the strong growth of domestic tourism.

Online travel has grown 82% in the past year and is expected to grow by 21% compound annual growth rate (CAGR) from 2023 to 2025, with GMV expected to reach US$7 billion.

Overview of the launching ceremony of the 8th E-Conomy SEA 2023 report. Photo: Google

According to the report, other important sectors that continue to grow and contribute to promoting Vietnam's digital economy include the transportation and food industries (food delivery services) and online media.

From 2022 to 2023, this field has grown by 10%, CAGR is expected to increase by 16% in the period from 2023 to 2025 and is forecast to reach US$4 billion by 2025.

Marc Woo, managing director, in charge of Vietnam, Google Asia-Pacific spoke at the event. Photo: Google

Digital payment in Vietnam will continue to grow thanks to strong support from the Government, investment activities of commercial banks, and the popularity of QR codes. This trend is forecast to accelerate when the State Bank encourages non-cash payment services in rural and remote areas.

Marc Woo, managing director, in charge of Vietnam, Google Asia-Pacific, said, "Vietnam's digital economy is developing in the right direction. Google will continue to comprehensively support the national digital economy through many programs nationwide, promoting Vietnamese technology startups.

Google invests in local talent from basic training for students and the workforce through the digital talent development program to in-depth training for technology startup leaders."

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