Vietnam’s $33 billion digital economy attracting big players
VietNamNet Bridge - Vietnam’s digital economy is promising, with value expected to reach $33 billion by 2025, according to the e-Conomy SEA 2018 Report released by Google and Temasek.


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Food delivery is expected to have the value of $33 million by 2018



The report shows in-depth analysis in the fields of travel (taxi, ride hailing, goods delivery and food delivery), e-commerce, online ads and online tourism. The four fields are estimated to have value of $8 billion in 2018. Of these, the travel sector is valued at $500 million.

Food ordering and delivery, which has just begun developing, is expected to have value of $33 million by 2018 and $38 million by 2020.

In the e-commerce sector, big foreign players such as Lazada, Shopee, Robins and Lotte are struggling for market share with Vietnam’s rivals such as Tiki and Sendo.

Tiki and Sendo are considered Vietnamese businesses. However, the foreign ownership ratio in the companies is relatively high. Tiki received investment capital from JD.com, while Sendo got $51 million worth of capital from SBI Holdings from Japan.

E-commerce and travel are the two busiest sectors in the digital market. The competitors all have accepted to take losses for a long time to obtain bigger market share.

In the region, Vietnam is the among top three markets. However, in terms of growth, Vietnam is second below Indonesia and may become the second largest market in Southeast Asia.

The losses reported by Lazada reached trillions of dong in the last few years, while Shopee and Tiki’s was nearly VND1 trillion.

The travel sector in 2018 was controlled by two foreign names Grab and Uber. After Uber merged with Grab, a newcomer Go-Viet was launched, backed by Indonesian Go-Jek.

The e-hailing market in Southeast Asia is now valued at $8 billion, but the figure is expected to climb to $30 billon by 2025, including over $20 billon for travel and over $8 billion for food delivery.

In the region, Vietnam is the among top three markets. However, in terms of growth, Vietnam is second below Indonesia and may become the second largest market in Southeast Asia.

While the startups providing online hotel room booking service in Vietnam remain fledgling, booking.com, the big player from the US, is present in Asia with Agoda.com, the website for booking hotel rooms.

Meanwhile, Airbnb has reached every medium- and high-end apartment block in HCMC, Hanoi and Da Nang, enlarging its accommodation sharing network.

Airbnb doesn’t not have a representative office and branch in Vietnam, but its services are well known to Vietnamese.

Vietnamese businesses are weakest at online tourism. To date, no Vietnamese business has developed an ‘all in one’ app like Airbnb from the US.


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Mai Chi

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