Hanoi (VNA) – Vietnam’s fast-growing digital economy is expected to help the country become a high-income economy by 2045, according to an article based on eastspring.com February 10.
Namely, “Vietnam’s digital boom to revive the economy,” the article notes. Although there will be challenges to overcome, such a development will also present many opportunities for investments in all sectors.
According to the author, Vietnam is popular for its gilded demographic, with almost 56% of its people under the age of 35, the highest among countries in the region with similar income levels. “With Gen X and Millennials forming the bulk of the country’s workforce and consumer markets, and Gen Z rapidly emerging as the next wave of consumers, Vietnam is expected to climb eight spots to reach 18th position in the global ranking of the 30 largest consumer markets by 2030.”
The article also writes that the Vietnamese middle class earning more than $700 per month is estimated at one third of the population and is expected to double by 2030. Such growth will support domestic consumption of higher value-added services and products. , he added. “As the young middle class is always ready to embrace new trends such as digitalization and sustainability, this will likely present new investment opportunities in financial services, information technology, consumer goods and consumer goods. green products.”
The author went on to say that digitization has become an integral part of everyday consumer life in Vietnam. The country’s digital economy is growing by double digits and the total market value is expected to reach USD 57 billion in 2025. Vietnam’s digital market is growing rapidly, driven by strong growth in e-commerce, fintech and online shopping. ‘education.
The article states that with increasing internet penetration, wider adoption of smartphones and various online shopping platforms, the e-commerce market is expected to generate higher growth of 25% per year and have a market value of USD 35 billion by 2025 – one-tenth of total retail sales according to the country’s long-term vision. A growing number of foreign investors are looking for investment opportunities in many Vietnamese e-commerce platforms. Vietnam’s e-commerce, boosted by the digitalization trend and aggravated by rapidly growing funding, is on track to achieve high growth rates.
The author noted that financial services are capitalizing on the digitalization trend in Vietnam. Following the State Bank of Vietnam’s digital transformation plan by 2025, the industry has been designated to play a pioneering role in establishing a fully digitized and human-centric system. Considering this, VietnamThese banks are pursuing notable digital development strategies.
The article adds that active users of selected banking apps in Vietnam saw 73% year-on-year growth in the first nine months of 2020, which is the highest in the region. He also said there is plenty of room for the country’s digital financial services to grow over the next few years.