Vietnam's digital economy is maintaining double-digit growth, driven mainly by e-commerce and online travel, according to a report by Google, Temasek, and Bain & Company released on Nov 12.

The country’s gross merchandise value (GMV) is projected to grow at a compound annual growth rate (CAGR) of 16 percent, reaching US$36 billion by 2024, with e-commerce and online travel as the primary growth drivers. Online travel alone is expected to grow 16 percent year-over-year, reaching $5 billion in 2024, significantly contributing to the overall GMV.

Vietnam also leads Southeast Asia in online media growth, with its GMV forecasted to reach $6 billion in 2024 (a 14 percent CAGR), and anticipated to reach $11 billion by 2030.

The ride-hailing market in Vietnam is increasingly competitive, particularly with the emergence of local companies and electric vehicle (EV) options. GMV in transportation and food delivery is expected to reach $4 billion in 2024, a 12 percent increase over the previous year.

Mr. Marc Woo, Google Asia-Pacific’s Managing Director for Vietnam, commented: “Over the past five years, we have seen strong and steady growth in Vietnam’s digital economy, and 2024 continues to affirm this potential. Vietnamese users have also shown keen interest in AI this year, and it is encouraging to see the Vietnamese government prioritizing this sector.”

The report also highlights strong interest and demand for AI in Vietnam’s urban centers, particularly Ho Chi Minh City and Da Nang, which lead the country in AI-related interest. The education, marketing, and healthcare sectors drive the highest volume of AI searches in Vietnam.

On November 12, Google, Temasek, and Bain & Company released the ninth Southeast Asia Digital Economy report, “Profit on the Rise: Harnessing Southeast Asia's Advantage.” The report covers digital growth in six countries—Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam—across e-commerce, food delivery, transportation, online travel, online media, and financial services. Southeast Asia’s digital economy is projected to reach $263 billion in GMV and $11 billion in profits by 2024. Since 2023, GMV and profits have grown at a CAGR of 15 percent and 24 percent, respectively.

For the first time, this report emphasizes the profitability outlook for Southeast Asia’s digital economy. Profitability has become a key focus, with companies achieving 2.5-fold profit growth over the past two years through streamlined commissions, targeted incentives, and new revenue sources.