Vietnam’s digital economy is the fastest growing in ASEAN. (Photo: Vietnam+)
In the article “Assessment of the ASEAN Digital Economy”, HSBC experts said that the ASEAN Digital Economy is entering a bright new phase, in which Vietnam has become the leading market in the Digital industry. for domestic and foreign businesses.
60% of businesses plan to invest in Digital technology
Ms. Amanda Murphy – Director of Corporate Banking, South and Southeast Asia, HSBC Asia Pacific, said that Vietnam’s digital economy will grow the fastest in ASEAN in 2022 and 2023 and is expected to maintain its growth. 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.
Also according to Ms. Amanda Murphy, the development of Vietnam’s Digital economy continues to impress. By 2023, this field will contribute 16.5% to GDP, with more than 1,500 Vietnamese Digital technology enterprises recorded. revenue from foreign markets, increasing by more than 7% compared to 2022.
In a recent survey by HSBC, 60% of businesses operating in Vietnam said they intend to invest in technology and digitalization for current business activities, with a focus on digital payments and e-commerce. and artificial intelligence. These companies believe that applying and enhancing Digital services will help them meet customer expectations for convenience and improve operational efficiency.
In this context, capital has become a lifeline for innovative companies. As a result, HSBC has enhanced its services to Digital economy companies through the launch of the USD 1 billion ASEAN Growth Fund. The fund’s purpose is to provide financial support to Digital economy companies that are capable of generating sustainable cash flow, even when traditional financial indicators are not achieved.
HSBC forecasts that there will be 67.3 million Vietnamese people using smartphones by 2026. (Photo: Vietnam+)
“We understand that profits do not always reflect the potential of an early-stage business, so we take a long-term approach when evaluating the growth potential of companies through key performance indicators, growth plans and customer attraction strategies,” Ms. Amanda Murphy emphasized.
The digital market is blooming in ASEAN
Assessing ASEAN’s potential, HSBC leaders said that, although it is in a period considered “capital-calling winter,” Southeast Asia is still home to the fastest growing digital economy in the world with a 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 $1,000 billion by 2030. This potential is partly fueled thanks to ASEAN’s population of 700 million, which is largely young, educated and tech-savvy, and a growing middle-class consumer base.
“Through discussions with clients, most recently at the Global Investment Conference organized by HSBC in April, we have also seen the ASEAN market become more and more attractive to investors. private. 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,” Ms. Amanda Murphy said.
Also according to HSBC experts, the process of accelerating Digitalization in the region has been promoted and supported by Government programs, from Singapore to Indonesia, Vietnam, Thailand, 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. This fund will provide loans, financial guarantees, capital and insurance for projects promoting the ASEAN-Australia trade corridor.
Ms. Amanda Murphy – Director of Corporate Banking, South and Southeast Asia, HSBC Asia Pacific. (Photo: Vietnam+)
All of the above factors create opportunities for digital economy businesses. These are special prospects for e-commerce, digital financial services, medical technology, green technology, clean energy vehicle ecosystems and artificial intelligence.
HSBC experts believe that to maintain growth, Digital economy companies will need to focus on controlling costs and increasing revenue. These companies must also reconsider their approach to capital raising to manage capital costs and ensure long-term sustainability.
In addition, businesses need to increase cooperation with partners in other markets, which also allows businesses to expand the scope of cross-border operations or develop capabilities without having to invest a large amount themselves. Choosing the right partner can also enhance a business’s reputation, increase its appeal to customers, and is especially relevant in the current context, making the business more attractive to investors. potential.
As ASEAN’s digital economy expands, cross-border e-commerce will also create growth opportunities for both new and traditional economy businesses. Making it easy for customers to pay through your digital platforms could be a key revenue generator in the coming years.
“The past two years have witnessed many challenges in finding capital for Digital economy businesses, but we have many reasons to be more optimistic in 2024. Advanced financial approaches and strong regional fundamentals will help boost the growth ambitions of businesses in ASEAN. And Vietnam, as one of the bloc’s members, will definitely benefit,” Ms. Amanda Murphy affirmed.
