Vietnam and Indonesia lead Southeast Asia with internet economy growth rates of more than 40 percent, according to a recent report (Photo: VNA) HCM City (VNS/VNA) — The Southeast Asian internet economy hasexpanded by 39 percent this year to hit 100 billion USD for the first time, according to a recent reportby Google, Temasek and new partner Bain & Company.
Vietnam and Indonesia lead with growth rates of more than 40 percent, whileSingapore, Malaysia, Thailand, and the Philippines registered 20-30 percentgrowth.
The e-Conomy Southeast Asia report for 2019 highlightsthe most significant industry trends observed in 2019 and analyses the currentand future potential of the Southeast Asian internet economy across its sixlargest markets (Indonesia, Malaysia, the Philippines, Singapore, Thailand, andVietnam).
This surge across the region is attributed to aninflux of around 100 million new online citizens in the last four years.
This growing market of customers has incentivisedbusinesses in the region, from established ‘unicorns’ like Gojek to smallerenterprises, to adopt and leverage digital tools to expandrapidly.
Vietnam's digital economy has topped 12 billion USD this year and is expected to surge to 43 billion USD by 2025, withe-commerce, online tourism, online communications and media, and ride-hailingbeing among the driving forces.
Vietnam has 61 million Internet users, and aVietnamese spends an average of three hours and 12 minutes daily on theinternet on mobile devices such as smartphones.
As a region, Southeast Asian users spend most of theirtime on social networks and OTT apps (52 percent), video apps (20 percent),games (11 percent), and other working utilities apps.
Vietnam has become the third largest destination inthe region for digital investment, with 600 million USD flowingin in 2018 and the first half of 2019, thanks to Hanoi and HCM City, which areamong the seven major internet economy developing cities in the region.
International investments in local tech firmsincluding MoMo, Sendo and Topica have contributed to making Vietnam adestination for investors.
As the world’s most engaged internet users, SoutheastAsia is shaping technology trends.
When it comes to services like ride hailing and fooddelivery, the region is growing as fast as anywhere in the world, and thatmomentum is only going to continue as a new generation comes of age and peopleoutside big cities come online.
By 2025 the regional Internet economy will havetripled to 300 billion USD, closing the gap with more developed markets in termsof GDP contribution.
Stephanie Davis, managing director, Google SEA, said,“Southeast Asia has an incredibly exciting digital economy as consumers areturning to digital to complete millions of tasks daily, resulting inunprecedented growth.
“However, there’s more to be done to realize digital’sincredible potential. Whether it’s providing support for small businesses togrow, teaching Southeast Asians digital skills, expanding Internet access tomore people or advocating for smart policy and regulation.”/.
VNA
