Digital Economy in Vietnam – BORGEN – Borgen Project

HO CHI MINH CITY, Vietnam — During the COVID-19 pandemic, Vietnam’s gross domestic product (GDP) growth rate managed to rise by 2.9% or the highest in Asia. Nevertheless, since the Delta variant permeated the country in the third quarter of 2021, Vietnam’s economy has become slack while detrimentally impacting businesses and the people. To adapt to the situation, the Vietnamese people shifted to a digital economy. The digital economy in Vietnam has opened up opportunities for the nation to recover from COVID-19’s economic effects and to boost global exchanges.
A digital economy is any kind of economic activity that occurs through digital technology and online platforms. The Internet is a primary operational space of the economy.
There is a total of three elements in a digital economy including:
The obstacles of the pandemic, especially in late 2021, have enabled digital incorporation in ministries, agencies and organizations across Vietnam. Below are impressive sectors that have reaped benefits from the digital economy in Vietnam:
With its rapid development, the digital economy in Vietnam has proved to be worth investing in.
In 2021, the sum of foreign investments made into Vietnam startups was more than $1.3 billion. Fintech (Digital Banking) was the most invested sector, with two contracts worth more than $100 million each. The digital economy in Vietnam has facilitated a rising startup hub with high technological applications in Southeast Asia.
Thanks to the improvement in quality with aid from technologies, Vietnam’s agricultural products are currently welcomed in various demanding markets, especially the U.S., the EU and Australia. “Australians are very open to Vietnamese farm produce, which means the chance for Vietnam to export more agricultural products to the market is high,” said David John Whitehead from the Australian Business Association in Vietnam (Auscham) at the Vietnam Agriculture Digital Transformation International Forum 2021.
Since Vietnam citizens jumped into e-commerce as sellers or buyers, foreign e-commerce apps have enjoyed a substantial profit opportunity. As of October 2021, on Lazada (a Chinese e-commerce platform), the figure for new sellers went up by 30% monthly. Additionally, its revenue and orders were twice as high as they were in 2020. Grab (a Malaysian e-commerce company) saw a high growth rate in orders for GrabFood and GrabMart, the firm’s two branches.
The digital economy has paved a new path for Vietnam to economically thrive in both domestic and global markets.
Lan Nguyen
Photo: Flickr
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