HCMC digital economy estimated to be worth $8B

By Vien Thong March 25, 2022 | 07:22 pm PT

Shippers make deliveries during Covid-19 lockdown in HCMC, Sept. 16, 2021. Photo by VnExpress/Quynh Tran

The digital economy accounted for around 15% of Ho Chi Minh City’s gross domestic product, or VND191.8 trillion (US$8.27 billion) last year, according to a study.

The ratio of e-commerce was estimated at 13.71-15.72%, said the study,released by the HCMC Institute for Development Studies Friday. The study is based on data from Google, Temasek and Bain & Company and from the city Department of Information and Communications on hardware and software production, digital content and IT services.

In 2020, the city set a goal of raising the ratio to 25% by 2025 and 40% by 2030.

The city’s GDP was worth VND1.3 quadrillion last year after contracting by 6.78%, the most in 35 years, as the fourth wave of Covid-19 hit.

Lam Dinh Thang, head of the department, said the digital economy has great potential since the city has the highest number of smartphone and internet users in the country.

The city has prioritized digital transformation in 10 sectors -- healthcare, education, transportation, finance - banking, tourism, agriculture, logistics, environment, energy, and human resources -- he added.

To achieve its targets, the institute has recommended that the city should become a fintech hub and complete its digital transformation support center.