According to the latest Google report, Southeast Asia’s Internet economy will hit $ 105 billion this year thanks to the Covid-19 translation.
|A phone user in Vietnam on August 29, 2017. Photo: Reuters|
Covid-19 promotes a wave of telework, online shopping, home food delivery and entertainment in Southeast Asia. New reports by Google, Temasek and Bain & Co show that the region, including Indonesia, Malaysia, Vietnam, Singapore and the Philippines, added 40 million new Internet users this year, bringing the total to 400 million. Thus, 70% of Southeast Asian’s population is online.
Online retailers have emerged as major beneficiaries of the Covid-19 blockade as people increase home shopping instead of going to stores for fear of infection. E-commerce in the region increased 63%, reaching 62 billion USD in 2020. According to the report, the Internet economy of Indonesia and Vietnam continues to grow at two digits.
Not surprisingly, the online travel industry has been hit hardest. Trading value fell 58%, to $ 14 billion. Transportation and food delivery – where Grab and Go-Jek dominate – were also affected, down 11 percent to $ 11 billion. Demand for on-demand ride-hailing has plummeted globally, prompting Grab and Go-Jek to cut staff.
In addition, the epidemic also accelerated the reception of online financial services as many users prioritized touch-free payments over cash.
Southeast Asia’s online industry could triple to $ 309 billion by 2025, of which online shopping is expected to reach $ 172 billion, higher than the previous estimate of $ 153 billion. With an 11% increase in users online, Southeast Asia is the fastest growing Internet market in the world. Currently the world has 4.7 billion Internet users, up 7.4% from a year ago, according to wearesocial.com.
The increase in internet usage has helped form technology unicorns like Grab, Go-Jek. Southeast Asian startups also attract billions of dollars from tech companies and global investment. According to the report, the region’s startup raised $ 6.3 billion in the first six months of the year, down from $ 7.7 billion in the same period in 2019. Investment transactions in startups are not unicorn on the rise.
Du Lam (According to Reuters, Bloomberg)
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