With the gross merchandise value (GMV) of internet economy set to account for over 5% of the country’s GDP in 2019,10 Vietnam is emerging as the most digital of all economies in ASEAN, according to a research report by Google, Temasek and Bain.
Source: e-Conomy SEA report 2019.
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Overall, the Southeast Asian Internet economy has leapt nearly 40% from last year to exceed $100 billion in GMV in 2019 across the online travel, e-Commerce, online media and ride hailing sectors. The region is on track to hit US$300 billion in 2025, US$60 billion more than previously estimated.
With all sectors taken into account, the GMV of the Internet economy amounted to 3.7% of Southeast Asia’s gross domestic product (GDP) in 2019, up from 1.3% in 2015. It is projected to exceed 8% by 2025. Southeast Asia is closing the gap with developed markets like the US, where the Internet economy had made up 6.5% of the GDP in 2016.
While the region has grown at an average rate of 33% a year since 2015, the two pacesetters in the region are Indonesia and Vietnam, which lead the pack with growth rates in excess of 40% a year.
Source: e-Conomy SEA report 2019.
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These dynamics are unlocking opportunities for entrepreneurial Vietnamese small and medium-sized businesses, which have jumped onboard the Internet economy to do business. Investor confidence in Vietnam, the third most-funded economy in the region after Indonesia and Singapore, is on the rise. Over the last four years, Vietnam’s Internet economy has attracted almost US$1 billion in funding, with 2019 in line to be a record year.
Source: e-Conomy SEA report 2019.
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