Hanoi (VNA) – Vietnam’s fast-growing digitaleconomy is likely to help the country become a high-income economy by 2045,according to an article established on eastspring.com on February 10.

Namely ‘Vietnam’s digital boom to lift the economy’, thearticle noted while there will be challenges to overcome, such development willalso present many opportunities for investments across sectors.

According to the author, Vietnam is popular for its goldendemographic population, with nearly 56 percent of its people are under 35, thehighest among countries in the region with similar income levels. “With Gen Xsand Gen Ys forming most of the country’s labour force and consumer markets, andGen Zs rapidly emerging as the next wave of consumers, Vietnam is set to climbeight places to 18th position in the global ranking of top 30 largest consumermarkets by 2030.”

The article also wrote Vietnam’s middle-income class earningabove 700 USD a month is estimated at one third of the population and expectedto double its size by 2030. Such growth will underpin domestic consumption forservices and higher value-added products, it said. “As the young middle classare ever ready to embrace new trends such as digitalisation and sustainability,this will likely present new investment opportunities in financial services,information technology, consumer goods and green products.”

The author continued to say that digitalisation is becomingan integral part of consumers’ daily life in Vietnam. The country’s digitaleconomy is growing by double digits and the total market value is expected tohit 57 billion USD in 2025. Vietnam’s digital market is fast growing driven bystrong growth in e-commerce, fintech, and education.

The article said with increasing internet penetration, wideradoption of smartphones and various online shopping platforms, the e-commercemarket is expected to generate a higher growth of 25 percent per annum and havea market value of 35 billion USD by 2025 – one tenth of total retail salesaccording to the country’s long-term vision. An increasing number of foreigninvestors have been seeking investment opportunities in many Vietnamesee-commerce platforms. Vietnam’s e-commerce, boosted by the digitalisation trendand compounded with fast growing funding, is on track to achieve high growthrates.

The author noted the financial services are capitalising thedigitalisation trend in Vietnam. Following the State Bank of Vietnam’s plan fordigital transformation by 2025, the industry has been designated to take apioneering role in establishing an entirely digitalised, human-centered system.Given this, Vietnamese banks are pursuing notable strategies for digitaldevelopment.

The article added that active users of select banking appsin Vietnam recorded a growth of 73 percent on-year in the first nine months of2020, which is the highest region wide. It also stated there is plenty of roomfor growth in the nation’s digital financial services over the coming years./.