Vietnam may become Southeast Asia’s second fastest-growing digital economy in 2025 as its gross merchandise value (GMV) is projected to rise 17% on-year to US$39 billion, according to the 10th e-Conomy SEA report.

Non-cash payment has become an irreversible trend in Vietnam. Photo: Viet Linh/Kinh te & Do thi Newspaper

The e-Conomy SEA 2025 report by Google, Temasek and Bain & Company said all major components of the Vietnamese digital economy continue growing at strong double-digit rates, driven by consumer adoption, supportive policies and wider use of AI-powered services.

E-commerce remains the country’s largest digital sector, accounting for two-thirds of total GMV and expected to grow more than 17% on-year to $25 billion in 2025.

Its momentum comes from rising online shopping demand, nationwide digital infrastructure upgrades and platforms expanding logistics and payment solutions.

Beyond online shopping, Transport and Food delivery are Vietnam’s fastest-growing digital segments. These two sectors are projected to rise 20% on-year to $5 billion next year.

The report links their growth partly to the rapid adoption of electric vehicles, supported by government incentives and demand from major ride-hailing platforms.

Online media is projected to expand more than 16% on-year to $6 billion, covering Advertising, Gaming, Video-on-demand and Music-on-demand. Gaming stands out as a major strength, with Vietnam home to three of the world’s top 15 developers by downloads.

Online Travel is also set to increase 16% to $4 billion, reflecting the tourism sector’s recovery on the back of favorable visa policies, better connectivity and strong domestic demand.

Marc Woo, Managing Director of Google Vietnam, said the country’s fast-changing digital landscape shows “robust resilience,” driven by widespread AI access and usage.

With daily AI engagement at 81%, he said Vietnam is becoming a pivotal market in Southeast Asia’s digital transformation.

The report also shows that Vietnam now ranks first in Southeast Asia in AI user readiness and trust, topping three core indicators: 81% of users engage with AI tools daily, 83% join AI learning or upskilling programs and 96% are willing to share data with AI agents.

AI-enabled apps have posted 78% revenue growth over the past year, driven by users seeking time savings (44%), 24/7 support (35%) and access to better deals (30%).

Vietnam is home to more than 40 active AI startups, which attracted $123 million in private funding in the past year, equal to 5% of total regional AI investment. Investor sentiment remains strong, with 79% expecting continued funding growth.

Digital finance and video commerce drive inclusive growth

The report shows that Digital Financial Services (DFS) continue expanding quickly. The gross transaction value (GTV) of Digital Payments is projected to reach $178 billion in 2025, reflecting wide consumer adoption.

Digital lending is also gaining speed, rising 22% over the past year and becoming the region’s second fastest-growing financial vertical.

Government initiatives support this rise through nationwide e-ID rollout and increased use of e-wallets, which now have 30 million active accounts.

VietQR and interoperable QR systems with Thailand and Cambodia are creating smoother cross-border payments and boosting tourism.

Video commerce has emerged as a standout growth engine. Vietnam is now the second-largest and second-fastest-growing video commerce market in Southeast Asia, posting 60% year-on-year growth in both sellers and transactions.

The sector now handles 1.3 billion transactions from 650,000 sellers, showing strong consumer adoption of content-driven shopping.

Erik Pot, Partner at Bain & Company, said Vietnam is “one of the region’s most dynamic markets,” leading in AI trust and adoption while sustaining strong growth across e-commerce, digital finance and video commerce.

With the digital economy on track to reach US$39 billion in 2025, Vietnam is demonstrating how “trust and technology can drive inclusive growth at scale,” he said.