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Vietnam's digital economy estimated to reach $36 billion in 2024
Vietnam's digital economy is continuing to show solid double-digit growth, and is forecast to reach $36 billion in gross merchandise value (GMV) in 2024, propelled by e-commerce and travel.
The information was revealed in the e-Conomy SEA 2024 report released by Google, Temasek, and Bain & Company on November 5.
The report pointed out that Vietnam's leadership has unveiled an ambitious digital roadmap for the year, which emphasises AI and semiconductor technologies alongside economic growth and improved public services. This proactive approach by the government sets Vietnam up well for significant digital advancements, despite previous limitations in infrastructure investment.
Meanwhile, the country's ride-hailing sector is undergoing a period of intensified competition, driven by the emergence of domestic and electric vehicle (EV) players. This increasingly competitive landscape has led to the exit of some regional players. As the sector continues to evolve, competition is expected to further intensify, reshaping the industry and potentially accelerating EV adoption.
Another trend is that Vietnam is rapidly going cashless, fuelled by public initiatives and innovative financial solutions. The rise of e-wallets, coupled with the widespread adoption of QR code payments, has significantly reduced cash transactions. Government initiatives have standardised payment systems and enhanced interoperability, further encouraging the shift away from cash.
Vietnam's e-commerce market is estimated to reach $22 billion GMV in 2024, an increase of 18 per cent on-year. Vietnam's e-commerce market ranks third in Southeast Asia, trailing behind Indonesia ($65 billion) and Thailand ($26 billion). By the end of the decade, the market is projected to reach $63 billion.
Overall, the report projects that in 2024, the digital economy will reach $263 billion in GMV, a 15 per cent increase over last year. Revenues have grown 14 per cent and are projected to reach $89 billion in 2024. This suggests that the digital economy can achieve both profitability and growth in tandem, marking a significant step towards achieving sustainable economic value.
Meanwhile, the region's e-commerce growth has surged 15 per cent on-year, propelled by video commerce – which now accounts for 20 per cent of e-commerce GMV, up from less than 5 per cent in 2022.
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