Vietnam driving force behind growing digital economy and e-commerce in ASEAN

 

Commentators are now attempting to assess how the country took advantage of opportunities from new generation trade agreements to accelerate the process of digital transformation. In terms of regional importance, Vietnam and other member states must strive to achieve closer co-ordination in order to promote inner-bloc economic digitalization in a faster and more efficient fashion, especially amid the ongoing COVID-19 pandemic which has greatly affected the entire bloc.

Nguyen Ky Minh, director of the E-Commerce Center in the Department of E-Commerce and Digital Economy under the Ministry of Industry and Trade, affirms that opportunities are open to the entire ASEAN economic community to enjoy the great potential that exists for digital economic development.

“It is forecast that the scale of the digital economy will reach over US$200 billion by 2025, focusing on services, including ride-hailing, such as Grab, online media with about US$19.5 billion, and online travel and e-commerce with roughly US$88.1 billion. Clearly, Southeast Asia has a chance, but it is important to utilise this in the face of growing interest from the Asia and Pacific region,” Minh notes.

In consecutive years from 2018 to 2019 this sector maintained a growth rate of around 30%, culminating in Southeast Asia this year boasting a "mobile economy" due to the growing number of smart device users. This has led to a diverse range of attractive online shopping options, while startups in the "virtual marketplace" have seen a strong increase in both quantity and income.

Le Hai Binh, chairman of Axys Group and vice chairman of Vietnam E-Commerce Association, explains, “COVID-19 has shown that businesses with digital conversion do exist and those who fail to adapt, will be eliminated. Digitalisation has been applied in all areas of life, so e-commerce digitalisation is a priority and prerequisite area for development that all businesses must follow.”

Due to these factors the nation has been spearheading efforts among ASEAN member states to implement a range of multilateral and bilateral co-operation schemes in an effort to capitalise on the benefits and to unlock the potential of the region’s “digital industry”. It can be considered that the most important task is to try and take advantage of the E-Commerce Agreement signed by Ministers in 2018 within the framework of the 33rd ASEAN Summit.

At the virtual Special Meeting of ASEAN Economic Ministers on COVID-19 Response held in April, ministers once again affirmed their determination to collaborate to cut down and limit existing barriers as a way of creating a favourable environment for e-commerce development.

Minister of Industry and Trade Tran Tuan Anh emphasised that in Hanoi's Action Plan and the statement of ASEAN + 3 ministers, bloc members and partners agreed to carry out strong measures aimed at developing e-commerce, boosting e-commerce infrastructure, and other multi-border e-commerce transactions.

The commitment to promote faster and stronger e-commerce is also a favourable opportunity to enjoy greater economic development within ASEAN, he added.