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Vietnam Today

iDEA: Internet economy to be worth $15 bn by 2020

Released at: 14:14, 07/03/2019

iDEA: Internet economy to be worth $15 bn by 2020

Photo: Minh Do

Vietnam eCommerce and Digital Economy Agency releases figures at "Policy Aspects for Vietnam's Digital Economy Development" conference on March 7 in Hanoi.

by Minh Do

Vietnam’s internet economy was estimated to have increased in value by 30 per cent in 2018 compared to 2017, reaching $8 billion, according to the latest report from the Vietnam eCommerce and Digital Economy Agency (iDEA) under the Ministry of Industry and Trade (MoIT).

The figures were presented by Mr. Dang Hoang Hai, Director General of iDEA, at the “Policy Aspects for Vietnam’s Digital Economy Development” conference held on March 7 in Hanoi by MoIT in collaboration with the World Bank.

According to a report from Google and Temasek, the figure in gross merchandise value in 2018 was estimated at $9 billion and will be $33 billion by 2025. iDEA forecasts that Vietnam’s total internet economy will stand at $13-$15 billion by next year, following Singapore and Indonesia in the region.

The conference included four key panels, where local management agencies and foreign organizations and enterprises discussed policies in online payments, building trust (private information security, consumer protection, and data flows), logistics, digital skills, and initiatives for the digital economy.

Mr. Ousmane Dione, World Bank Country Director for Vietnam, said the country isn’t lagging behind in breakthrough technology. “I have seen improvements in technology in the country for the last two years, in which there has been the appearance of ride-hailing and accommodation platforms and fintech, increasing the competition with traditional business models,” he said. “Thus, the digital economy will more strongly boost the competitiveness of businesses.”

Policies are a key factor for Vietnam in developing its digital economy, through creating an effective legal environment under which the government will ensure efficient implementation.

The World Bank also released its “State of Play” report, which mentions building platforms for economies and provides comparisons between Vietnam’s economy and other regional economies. Mr. Dione also spoke of five new findings in the report: digital payments, policies to boost participation in the digital economy, improvements in digital skills for people, higher levels of digital in government, and reductions in government procedures.

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