Vietnam's digital economy is experiencing unprecedented growth, projected to reach $39 billion by the end of 2025, up from $34 billion in 2024, according to the latest e-Conomy SEA report by Google, Temasek, and Bain & Company. This remarkable expansion solidifies Vietnam's position as Southeast Asia's fastest-growing digital market for three consecutive years.

Record-Breaking Growth Across All Digital Sectors

The Vietnamese digital landscape is witnessing double-digit growth across every major sector. E-commerce continues to dominate, rising 17% to reach $25 billion, while transport and food services jump 20% to $5 billion. Online travel is expected to increase 16% to $4 billion, and online media shows similar growth at 16%, reaching $6 billion.

What makes Vietnam's digital economy particularly resilient is its dynamic private sector combined with supportive government policies. Robust export growth, fueled by significant foreign investment in manufacturing, has created a strong foundation. The State Bank of Vietnam's flexible monetary policy has maintained crucial macroeconomic stability, enabling the country to navigate global economic challenges effectively.

AI Adoption Accelerates: 47,000 Businesses Embrace Technology

Artificial intelligence is rapidly transforming Vietnam's business landscape. In 2024 alone, approximately 47,000 businesses adopted AI solutions—that's more than five companies every hour. Currently, 170,000 businesses (18% of Vietnam's total) have integrated AI into their operations, representing a remarkable 39% year-over-year growth rate.

The economic impact is substantial: 61% of Vietnamese businesses using AI reported revenue increases averaging 16%, while 58% expect cost savings of approximately 20%. Vietnamese users rank first in Southeast Asia for AI engagement and trust, with 81% interacting with AI tools daily—demonstrating exceptional digital literacy and technological openness.

The Two-Tier Economy Challenge

Despite rapid adoption, most businesses (74%) remain focused on basic AI use cases like process automation and efficiency improvements. Only 17% have advanced to intermediate AI integration, and just 9% have reached transformative implementation where AI drives product development and business models.

Interestingly, startups are outpacing larger enterprises in AI innovation. While 55% of startups use AI and 35% build entirely new AI-driven products, only 41% of large enterprises utilize AI, with merely 11% developing new AI services. This gap reveals a potential "two-tier" AI economy that could shape Vietnam's competitive future.

Digital Infrastructure: Building the Foundation

As part of its national digital transformation agenda, Vietnam has implemented electronic IDs for all residents and businesses, streamlining online public services. Banks recently completed comprehensive verification of all digital payment accounts, standardizing customer information and significantly reducing fraud.

The cashless payment revolution is well underway. Merchant adoption of digital payments and the growth to 30 million active e-wallet accounts have driven a surge in non-cash and VietQR payments in 2024. The government targets 80% cashless transactions in e-commerce by 2030. Notably, Vietnam's QR payments are now fully interoperable with Thailand and Cambodia, creating new opportunities for regional tourism and economic cooperation.

Video Commerce: The Next Frontier

Vietnam's video commerce market demonstrates sustainable growth foundations, with both seller numbers and transaction volumes increasing in tandem. In 2025, Vietnam hosts 650,000 video commerce sellers and stores—a 60% year-over-year surge. Transaction volume is expected to reach $1.3 billion, also up 60% annually.

Fashion and accessories lead video commerce GMV, followed by beauty and personal care, phone electronics, and everyday supplies. The average order value ranges between $5.50 and $7, making digital commerce accessible to a broad consumer base.

Overcoming the Skills Gap Challenge

The primary barrier to deeper AI adoption remains workforce capability. A staggering 55% of businesses cite lack of skilled personnel as their main challenge preventing AI expansion. While companies have the technology and vision, they struggle to find qualified talent to implement solutions.

This skills shortage threatens Vietnam's global competitiveness. AI literacy is expected to be required in 50% of jobs moving forward, yet only 24% of businesses feel their current workforce is prepared. The demand is so high that businesses report willingness to increase salary offers by 40% for candidates with strong AI skills.

Investment in Digital Skills Development

Recognizing this challenge, major technology companies are stepping up. AWS (Amazon Web Services) has trained over 100,000 individuals in cloud and AI skills in Vietnam since 2017. In 2023, AWS launched the "AI Ready" initiative, offering free AI and generative AI courses—30 currently available in Vietnamese—to help learners acquire in-demand skills and access career opportunities.

Future Outlook: $130 Billion AI Economy by 2040

Looking ahead, the Vietnam AI Economy 2025 report projects that AI could contribute up to $130 billion to Vietnam's GDP by 2040—equivalent to approximately 25% of the country's current economic scale. This ambitious projection reflects AI's transition from emerging technology to a central pillar of national development strategy.

To achieve this vision, three priority actions are essential: First, invest in industry-specific digital skills programs to develop a workforce capable of driving AI-led innovation. Second, establish clear, predictable, pro-growth regulations that encourage deeper AI adoption across all business sizes. Third, accelerate digital transformation in the public sector, particularly in healthcare and education, using government leadership to inspire private sector confidence.

Key Takeaways for Businesses and Investors

• Market Size: Vietnam's digital economy reaches $39 billion in 2025, with consistent double-digit growth across all sectors
• E-commerce Leadership: $25 billion e-commerce market leads the digital economy with 17% annual growth
• AI Momentum: 47,000 businesses adopted AI in 2024, with 39% year-over-year adoption growth rate
• Revenue Impact: 61% of AI-adopting businesses report average 16% revenue increases
• Regional Leadership: Vietnamese users rank #1 in Southeast Asia for daily AI engagement and trust
• Skills Demand: Companies willing to pay 40% salary premiums for AI-skilled candidates
• Payment Innovation: 30 million active e-wallets drive cashless payment surge toward 80% target by 2030

Frequently Asked Questions

How large is Vietnam's digital economy in 2025?

Vietnam's digital economy is projected to reach $39 billion by the end of 2025, up from $34 billion in 2024. This represents double-digit growth across all major sectors including e-commerce, online travel, transport and food services, and online media.

What percentage of Vietnamese businesses use AI?

Currently, 18% of Vietnamese businesses (approximately 170,000 companies) have adopted AI, up from 13% last year. This represents a 39% year-over-year growth rate, with about 47,000 businesses adopting AI solutions in 2024 alone—more than five companies every hour.

What is the main challenge for AI adoption in Vietnam?

The primary barrier is the lack of skilled personnel. 55% of businesses cite insufficient AI talent as their main challenge. Vietnam produces about 60,000 IT graduates annually, but only around 1,000 have deep AI expertise. Businesses report willingness to increase salaries by 40% for candidates with strong AI skills.

How much could AI contribute to Vietnam's GDP by 2040?

According to the Vietnam AI Economy 2025 report by the National Innovation Center, JICA, and BCG, AI could contribute up to $130 billion to Vietnam's GDP by 2040—equivalent to approximately 25% of the country's current economic scale.

What makes Vietnam's digital economy stand out in Southeast Asia?

Vietnam has been Southeast Asia's fastest-growing digital economy for three consecutive years (2022-2024). Vietnamese users rank first in the region for AI engagement and trust, with 81% interacting with AI tools daily. The country also leads in video commerce growth with 650,000 sellers and $1.3 billion in transaction volume.

Conclusion

Vietnam stands at a pivotal moment in its digital transformation journey. The convergence of rapid AI adoption, robust e-commerce growth, and supportive government policies has created a dynamic ecosystem primed for sustained expansion. While challenges like the skills gap and the two-tier AI economy persist, the trajectory is clear: Vietnam is emerging as a digital powerhouse in Southeast Asia.

For businesses, investors, and technology professionals, Vietnam offers compelling opportunities. The combination of a young, tech-savvy population, increasing digital infrastructure investment, and favorable government policies makes it an attractive destination for digital economy participation. As the country accelerates toward its ambitious 2030 and 2040 targets, those who engage early stand to benefit from this transformative economic shift.