A recent study by Google, Temasek and Bain & Company has shone a light on the digital e-Conomy in South East Asia with Vietnam showing particularly bright growth prospects. The research leverages primary research, Temasek insights, Bain analysis, Google Trends, expert interviews and industry sources to shed light on the internet economy in Southeast Asia – you can view the full report here.
One of the key findings was the impacts and emergence of South East Asian digital economies from the challenging Covid pandemic period. Despite the economic challenges of these years there was strong growth of digital economies in particular suggesting a pivot from consumers towards digital channels when physical transactions became impossible. Furthermore this stands to lead to ongoing growth in the space with Vietnam showing the strongest potential in the 2021-2025 period where digital is projected to make up more than $50 billion USD, more than double the $21billion estimated value in 2021.
Across South East Asia e-Commerce is the leading driver of growth and is projected to continue to form a major part of the digital e-Conomy through til 2025. Online Travel has had a challenging period obviously but is projected to get back on track in the coming years whilst Transport & Food and Online Media are projected to show continued growth.
Online Media is a growing space in terms of market value with Vietnam showing the largest consumer interest growth in the region. Google trends show 18x more interest in online video streaming services between the beginning of 2017 and now!
We all know that digital technologies are having an increasing impact on day to day lives. The study shows that the value of these digital industries has massive growth to come particularly in Vietnam where a high number of new digital consumers are projected to emerge this decade. According to the study Vietnam’s digital e-Conomy could reach up to $220 billion by 2030, around 11x bigger than it is today!
It’s very clear that a strong digital strategy is essential for every company looking to grow this decade in Vietnam. To review your coming opportunities and challenges contact your Blueseed Group Account Manager today!
