Vietnam’s internet economy forecast to hit US$12 billion this year
Vietnam’s internet economy forecast to hit US$12 billion this year
Vietnam’s internet economy is expected to reach US$12 billion in 2019 and US$43 billion in 2025, with a boom in ecommerce, online tourism, online communications and ride-hailing, according to a report on Southeast Asia’s digital economy in 2019.
The report released in HCMC on October 3 by Google, Singapore state investor Temasek Holdings and global business consulting firm Bain & Company highlighted some major trends of the digital economy industry this year, according to the Vietnam News Agency.
Besides this, the report analyzed the current potential and future prospects of the internet economy in the six largest economies in the region. It indicated that Vietnam and Indonesia are the two leading markets that have made a significant breakthrough for the growth of the digital economy, at over 40% per year.
Meanwhile, Malaysia, the Philippines, Singapore and Thailand have seen growth rates ranging from 20% to 30% each year.
This year, Vietnam will have 61 million internet users, who spend three hours and 12 minutes per day on average using the Internet on their mobile devices, such as smartphones.
The strong growth of the digital economy in Hanoi City and HCMC has made Vietnam the third most attractive investment destination of the region, attracting US$600 million in investment from 2018 to June 2019.
A number of foreign investors have poured a large amount of capital into ewallet service provider MoMo, ecommerce platform Sendo and Topica over the past few months, contributing to Vietnam’s growth in this area.
The report also indicated that the region’s internet economy has hit a new high of US$100 billion this year, up US$72 billion against the 2018 figure.
The fast pace of the digital economy in the region stems from an increase in internet users. The figure soared by 100 million users from four years earlier.
The rising number of internet users has encouraged regional firms to utilize digital equipment to expand their business operations as fast as possible.
Southeast Asia’s internet economy is forecast to hit US$300 billion by 2025, as it aims to bridge the gap with other developed markets.
