The solution to Vietnam’s digital economy in the new normal

The growth rate of e-commerce in Vietnam is very high. However, when the Covid-19 pandemic is over, Vietnam’s e-commerce market will witness a completely new picture.

Vietnam has an e-commerce growth rate of 25-30%/year

Speaking at the Digital Economy Summit held today, Mr. Nguyen Duc Hien, Deputy Head of the Central Economic Commission, said Resolution 52 of the Politburo on “A number of key undertakings and policies participating in the Fourth Industrial Revolution” has identified digital economic development as a pillar and strategic focus in the development process of national digital transformation in the coming years and set goals by 2025. Vietnam’s digital economy accounts for 20% of GDP.

According to Mr. Nguyen Duc Hien, digital economic activities in Vietnam are developing strongly, especially in the fields of financial technology (Fintech), telecommunications, computer and electronic manufacturing, and ICT services.

Mr. Nguyen Duc Hien, Deputy Head of the Central Economic Commission.

However, the general reality shows that our country is facing a number of difficulties and obstacles such as: The legal and institutional environment is still weak, not tight, not synchronized, the economy uses a lot of cash, New business forms develop rapidly, making state management agencies quite confused in managing digital economic activities. These are barriers to digital economic development that need to be quickly removed.

According to Mr. Nguyen The Quang – Deputy Director of the Department of E-commerce and Digital Economy (Ministry of Industry and Trade), e-commerce in Vietnam has never been as developed as it is today.

Evaluation of the Ministry of Industry and Trade shows that, from 2016 to now, the growth rate of e-commerce in Vietnam is from 25-30%/year. B2C revenue of Vietnamese e-commerce has increased from 5 billion USD in 2016 to 11.8 billion USD in 2020.

These are very optimistic figures of Vietnam’s digital economy. A representative of the Ministry of Industry and Trade said that by 2025, the scale of B2C revenue in Vietnam’s e-commerce will be 35 billion USD, accounting for about 10% of retail sales across the country.

The solution to Vietnam's digital economy in the new normal
Mr. Nguyen The Quang – Deputy Director of the Department of E-commerce and Digital Economy (Ministry of Industry and Trade).

The amount of money spent on online shopping by each Vietnamese citizen in 2020 is 240 USD/person/year. However, this number is predicted to increase to 600 USD/person/year in 2025.

Not only business on a developed digital platform, healthcare, education and other fields are all taking advantage of digital technology to promote their production and business activities, especially when the Covid-19 epidemic has spread. wide.

In that context, a seminar on the Digital Economy was held to seek opinions from associations and businesses to find out the key to growth for the Vietnamese economy in the new normal.

After the pandemic, it will be a completely new picture of Vietnam’s e-commerce

Sharing at the seminar, Mr. Nguyen Ngoc Dung – Vice Chairman of the Vietnam E-commerce Association said that in the past time, due to the impact of the pandemic, all chains in the economy have been broken.

In an entire supply chain of the economy, e-commerce has contributed a lot to the circulation of goods. However, during the period of social distancing, many problems have arisen and affected the operations of e-commerce companies.

According to Mr. Dung, in the opposite direction, also due to Covid-19, everything related to online was developed. The time of the epidemic has accelerated the progress of e-commerce application by 1-2 years compared to the Association’s plan.

The solution to Vietnam's digital economy in the new normal
Mr. Nguyen Ngoc Dung – Vice Chairman of Vietnam E-commerce Association.

At the moment, e-commerce companies are being hit hard. In that context, the Vietnam E-commerce Association is making recommendations for shippers to move, circulate and deliver goods across districts.

Many localities have supported and given special favor to the activities of the shipper team, so that the business of many businesses has been smooth again. However, those are still very limited.

Looking to the future, Mr. Dung said that the current growth rate of e-commerce is about 30-35%/year. But after the pandemic is a completely different picture, all predictions and calculations will no longer be accurate.

However, the activity of e-commerce will turn to a new page. Everyone has been educated about e-commerce during the pandemic, so next time, after controlling and planning to live with the pandemic, we will receive a new wave of commerce. e-commerce. This will depend a lot on the policies to support the development of the digital economy of ministries, branches and localities

According to Mr. Dung, many businesses in the blockchain segment have been very successful in raising a large amount of capital during the pandemic through the Internet. This is a new point of Vietnam’s digital economy.

Proposing public-private cooperation in anti-epidemic and digital economy development

At the Digital Economy seminar, Ms. Nguyen Thai Hai Van – Managing Director of Grab Vietnam made suggestions on promoting public-private cooperation between the government and businesses, applying the technology platform to maintain the quality of life. maintain anti-epidemic activities and promote the digital economy.

Ms. Van said that in the past time, Ho Chi Minh City has had many challenges in maintaining the supply chain. According to Grab’s leader, if the public-private partnership is better integrated, such as operating a trial market in Thu Duc like now, this business will be able to support the government more in its work. fight the epidemic and restore the economy.

Many businesses have made proposals for ride-hailing platforms to cooperate with the government to maintain the supply chain.

Ms. Nguyen Thai Hai Van also suggested that there should be unity in the recognition of the role of shipper in the supply chain. In many countries, the shipper team is seen as a frontline force, Vietnam should also learn from that experience

Sharing more, this expert said that cashless payments will be a big step forward and be leverage in maintaining the economy during the pandemic. The number of people using Grab’s cashless payment for the first time has increased by 30% in 2020. This is a testament to the potential and growth rate of this economic segment.

Trong Dat

Vietnam's growth potential lies in the digital economy

Vietnam’s growth potential lies in the digital economy

The development potential of the Internet and digital economy components is still quite large.


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