PROMOTING DIGITAL ECONOMY IN VIET NAM

The digital economy has been identified as one of Vietnam’s new growth drivers, with the ambitious goal of contributing around 30% of GDP by 2030. To realize this vision, Vietnam must accelerate support for small and medium-sized enterprises (SMEs), develop e-commerce and logistics, and build a sustainable digital ecosystem that reaches all areas of life. In the context of globalization and the Fourth Industrial Revolution, the digital economy has become a key indicator of national competitiveness. Vietnam’s National Digital Transformation Strategy sets the target for the digital economy to account for 20% of GDP by 2025 and 30% by 2030—a goal that reflects both ambition and strong political commitment to comprehensive economic transformation.

According to the Ministry of Information and Communications, Vietnam’s digital economy reached a scale of US$30 billion in 2024, growing at more than 20% annually, ranking among the fastest-growing in Southeast Asia. Key sectors such as e-commerce, digital finance, telemedicine, and online education are expanding rapidly, shaping a technology- and knowledge-driven economy. The digital economy not only generates direct economic value but also drives structural changes in production, business operations, and social governance. As public services move online, cashless payments become widespread, and data systems are increasingly interconnected, the overall efficiency and productivity of society are significantly enhanced.

However, Vietnam still faces many challenges in achieving its digital economy goals. The digital divide between urban and rural areas remains substantial; the legal framework for data protection and electronic transactions is still incomplete; and issues of cybersecurity and data breaches are becoming more complex. Most importantly, SMEs—which account for 97% of all businesses—still struggle with limited access to digital technology, insufficient capital, and a lack of high-skilled labor and structured digital strategies, making their participation in the digital economy relatively weak.

SMEs currently contribute nearly half of Vietnam’s GDP and over 30% of the state budget, serving as the backbone of the national economy. Yet, they face multiple barriers in digital transformation. Supporting this business segment to engage more deeply in the digital economy is therefore essential. Policy measures such as preferential credit programs, incentives for research and development, and digital skills training for both business owners and employees must be implemented synchronously. Empowering SMEs will generate powerful spillover effects, as they are the foundation for job creation, innovation, and inclusive growth.

At the same time, e-commerce has become one of the most dynamic engines of Vietnam’s digital economy. In 2024, the market reached nearly US$20 billion, expanding at more than 25% per year. Millions of enterprises and household businesses now sell online, reaching customers not only domestically but also internationally. Consumers are increasingly familiar with online shopping, digital payments, and digital services—marking a fundamental shift in consumption behavior and contributing to the modernization of the national economy.

Nevertheless, e-commerce can only grow sustainably with a strong logistics infrastructure. Currently, logistics costs in Vietnam account for 16–17% of GDP, much higher than the 8–10% seen in developed economies. This remains a major obstacle to competitiveness in goods and services. To overcome it, Vietnam must invest in integrated logistics infrastructure, adopt smart warehouse management and intelligent transport technologies, and optimize supply chains. As logistics become more efficient, business costs will decrease, markets will expand, and consumers will benefit from faster, more transparent, and more reliable services.

The digital economy—together with its three key pillars: SMEs, e-commerce, and logistics—is becoming the lifeblood of Vietnam’s modern economy, deeply integrated into every sector from industry and agriculture to services, transforming how the country produces, manages, and consumes. To achieve the goal of the digital economy contributing 30% of GDP by 2030, Vietnam must act decisively and cohesively. Priorities include strengthening the legal framework for data protection and privacy, investing in modern digital infrastructure, developing national data centers, expanding high-quality broadband coverage, and promoting cashless payments. At the same time, the country must foster innovation and commercialization of new technologies, support SMEs’ access to digital platforms, and encourage the growth of green and sustainable logistics linked with e-commerce.

Developing the digital economy is not only an inevitable global trend but also a strategic choice for Vietnam’s breakthrough. When SMEs are digitalized, e-commerce operates sustainably, and logistics systems are modernized, Vietnam’s economy will gain strong momentum to integrate deeply into global value chains, enhance its international standing, and move closer to its vision of becoming a prosperous, developed, and happy nation.