Vietnamese ICT businesses benefit from digital consumption

ABO/NDO – Vietnamese ICT enterprises have benefited greatly from the fast digitalisation trend, with their revenues rising despite the COVID-19 pandemic.

Google’s e-Conomy SEA 2020 report said COVID-19 has led to an acceleration of digital consumption as users tried new digital services for the first time.

According to the report, among users of digital services in Vietnam, new users accounted for 41%, higher than the Southeast Asia’s average. Notably, 94 percent of them intend to continue with the service post-pandemic.

Illustrative image (Photo: vietnamnet.vn).

Before the pandemic, Vietnamese spent an average 3.1 hours per day online. During lockdown, the figure rose to 4.2 hours per day which is expected to stay at 3.5 hours daily post-pandemic.

Vietnam is among countries with the fastest growing digital economies in Southeast Asia. By 2025, the Philippine digital economy’s compound annual growth rate is forecast to reach 30%, followed by Vietnam with 29%, Thailand 25%, Malaysia and Singapore 21%.

Benefiting from the trend, Digiworld JSC earned over VND 12.5 trillion (US$ 543 million) in revenue and more than VND 333.8 billion in pre-tax profit last year, up 47.6% and nearly 59% annually, respectively. The respective figures this year are forecast to grow by 58.5% and over 84%.

Experts from the Bao Viet Securities Company said laptops and tablets in Vietnam hold the potential of strong growth thanks to the work-from-home trend and online schooling till the end of the first academic year.

They added that the mobile phone market will rebound in the fourth quarter thanks to the re-opening of retail outlets nationwide, pent-up demand following lockdown, and launch of new products during peak season.

According to the Mobile World Investment Corporation and the FPT Digital Retail JSC, demand for laptops in August also doubled annually.

(Source: NDO)