Released on Tuesday by Google, Temasek and Bain & Company, the report projects Vietnam’s digital economy to reach US$39 billion in gross merchandise value this year, marking a 17% growth from 2024.

AI applications on a smartphone.

The report, which surveyed some 7,200 users, shows that Vietnam tops the region in AI engagement, outpacing Indonesia (80%) and Thailand (74%) in daily interactions.

The main drivers for AI usage include time-saving in research and comparisons, 24/7 customer support availability and finding deals to save money.

Some 42% of Vietnamese users expressed concerns about privacy and data security related to AI, but 96% are still willing to share data with AI agents.

The surge is also fueling the growth of the AI industry in Vietnam. The report shows that revenues from AI-integrated applications grew by 78% year-on-year, and more than 40 AI startups operate in the country.

Vietnam ranks second in the region in expecting increased investment in AI in the long term, with 79% anticipating more money to flow into segments like software, services, AI, and deep-tech, behind only Singapore’s 100%.

Marc Woo, Google Vietnam's managing director, attributes the widespread use of AI in daily life and work to the acceleration of Vietnam's digital economy.

"With 81% of Vietnamese users engaging with AI tools daily, it shows that Vietnam's digital environment is becoming increasingly dynamic and adaptable, keeping up with modern trends," he says.

"Vietnam is becoming one of the most important markets in Southeast Asia’s digital technology development, boosting productivity and adding value across various sectors."

Erik Pot, partner at Bain & Company, also highlights Vietnam's growing influence, noting that the country has emerged as "one of the most dynamic markets in SEA."

The report also highlights the growth in key segments of Vietnam’s digital economy. E-commerce continues to contribute the largest share to Vietnam’s total gross merchandise value, accounting for two-thirds of the digital economy, and projected to grow 17% this year to $25 billion.

Digital content, including advertising, gaming, on-demand video, and music, is expected to grow by over 16% to $6 billion. The gaming industry is playing a crucial role in this growth, with three Vietnamese game developers in the global top 15 for downloads. Digital payments are forecast to reach $178 billion this year.

Pot says Vietnam’s success demonstrates the power of combining trust and technology to drive growth.

"The real opportunity lies in how businesses leverage AI as a catalyst for value creation, skillfully balancing the country’s economic structure."

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