Vietnam’s digital economy has the strongest growth in Southeast Asia

Ms. Amanda Murphy, Head of Corporate Banking, South and Southeast Asia, HSBC Asia Pacific & Mr. Ahmed Yeganeh, Country Head of Corporate Banking, HSBC Vietnam recently announced a Forecast numbers on the growth of the digital economy in ASEAN and Vietnam.

Vietnam’s digital economy has maintained a high growth rate for many consecutive years

Vietnam has the fastest growing digital economy in ASEAN in 2022 and 2023 and is expected to maintain this position until 2025. Vietnam is also forecast to have 67.3 million smartphone users by 2026, accounting for 96.9% of Internet users. Vietnam has become the leading market in the digital industry for domestic and foreign businesses.

The development of Vietnam’s digital economy continues to impress, last year the sector contributed 16.5% to GDP, with more than 1,500 Vietnamese digital technology businesses recording revenue from the market. foreign markets, an increase of more than 7% compared to 2022.

In a recent HSBC survey, 60% of businesses operating in Vietnam said they planned to invest in technology and digitalization for current business activities, with a focus on digital payments and e-commerce. and artificial intelligence.

According to experts from HSBC, the ASEAN digital economy is entering a bright new phase. However, businesses in this field need to apply a smart strategy to reap the rewards.

The digital market is blooming in ASEAN…

Despite being in what is considered a “capital-raising winter,” Southeast Asia is still home to the world’s fastest-growing digital economy: the region’s digital economy grew 12% last year and is expected to record a compound annual growth rate of 16%, reaching a value of nearly 1 trillion USD until 2030.

This potential is fueled in part by ASEAN’s population of 700 million, which is largely young, educated and tech-savvy, and its growing middle-class consumer base.

At the recent Global Investment Conference, the ASEAN market became more and more attractive to investors. This opinion is also reflected in the results of a recent survey HSBC conducted with businesses operating in ASEAN, 74% of them intend to increase investment in this region in 2024.

The acceleration of digitalization in the region has been driven and supported by government programs, from Singapore to Indonesia, Vietnam, Thailand, the Philippines and Malaysia. A new government funding fund worth $1.3 billion was announced during the ASEAN-Australia Special Summit in Melbourne in early March. The fund will provide loans, financial guarantees, capital and insurance for projects promoting the ASEAN-Australia trade corridor.