Digital Economy Could Add USD 169 Billion to Vietnam’s GDP by 2045

May 2019

On 15 May 2019, CSIRO’s Data61, the data and digital specialist arm of Australia’s national science agency, CSIRO (Commonwealth Scientific and Industrial Research Organization) and Vietnam’s Ministry of Science and Technology launched Vietnam’s Future Digital Economy, a report that examines the trends affecting the development of Vietnam’s digital economy until 2045. The report is part of the Australian Government’s Aus4Innovation program, an AUD 10 million (USD 7 million) strategic initiative designed to strengthen links between the Australian and Vietnamese innovation systems.

Data61 has worked with the Ministry of Science and Technology’s team to identify seven megatrends affecting Vietnam’s future digital economy. These include the impact of emerging digital technologies, new export markets for Vietnam, the development of modern digital Infrastructure, the push to smart cities, the rise of digital skills and services and changing consumer behaviors. Four potential future scenarios were developed on the basis of these trends, to provide a blueprint for decision makers to plan for Vietnam’s future digital economy. 

According to the best case scenario in the report, Vietnam’s GDP which is currently at around USD 224 billion, could rise by USD 168.6 billion by 2045 due to the impact of digital technologies. In this scenario,  Vietnam is a net seller of digital products and services,  and also has a high domestic level of adaptation to new digital products and services across government, the community and industry. However, 38% of current jobs would be at risk of transformation or disruption in this scenario. The workforce would need to upskill as jobs are automated across the agriculture and Manufacturing sectors.

Vietnam’s digital economy grew by over 25% in 2018, and it is expected to maintain this growth for the next 2-3 years. Currently, the Ministry of Planning and Investment in Vietnam is working on a national strategy in order to capitalize on the fast-growing digital economy, supporting businesses to take advantage of the new opportunities being created. At the same time, the Ministry of Information and Communications is drawing up a roadmap for the country’s digitization. The plan proposes having 50% of businesses carrying out business digitally by 2025 and the digital economy contributing 20% of the nation’s GDP. Moreover, the plan sets a target for the government to conduct at least 80% of its interactions with the public and businesses on digital platforms by 2025.

(Source: VN Express; Data61)

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