Viet Nam’s digital economy to reach US$36 bln this year

Viet Nam’s digital economy is projected to post a compound annual growth rate (CAGR) of 16 percent, reaching US$36 billion in 2024, with e-commerce and online travel as the primary growth drivers. 

The above projection was highlighted in the 9th edition of the e-Conomy SEA report "Profits on the Rise, Harnessing SEA's Advantage" released by Google, Temasek, and Bain & Company.

According to the report, Viet Nam leads Southeast Asia in online media growth, with its GMV forecasted to reach US$6 billion in 2024 (a 14 percent CAGR), and anticipated to reach US$11 billion by 2030.

Online travel alone is expected to grow 16 percent year-on-year, reaching US$5 billion in 2024, significantly contributing to the overall GMV.

The ride-hailing market in Viet Nam is increasingly competitive, particularly with the emergence of local companies and electric vehicle (EV) options. GMV in transport and food delivery is expected to reach US$4 billion in 2024, a 12 percent increase over the previous year.

Marc Woo, Google Asia-Pacific's Managing Director for Viet Nam, said that over the past five years, they have seen strong and steady growth in Viet Nam's digital economy, and 2024 continues to affirm that potential.

Vietnamese users have also shown keen interest in artificial intelligence (AI) this year, and it is encouraging to see the Vietnamese government prioritizing this sector, he said.

The report also highlights strong interest and demand for AI in Viet Nam's urban centers, particularly Ho Chi Minh City and Da Nang, which lead the country in AI-related interest. The education, marketing, and healthcare sectors drive the highest volume of AI searches in Viet Nam.

It predicts that in 2024, the Southeast Asian region's digital economy will reach US$263 billion in GMV, a 15 percent increase over last year. Revenues have grown 14 percent and are projected to reach US$89 billion in 2024.