In 2025, Viet Nam will continue to affirm its position as an attractive destination for Foreign Direct Investment (FDI) in Southeast Asia. One of the factors that has created a strong change in investment trends is the remarkable development of the digital economy and e-commerce. In the following article, DNP Viet Nam Law Firm will analyze the outstanding impacts, opportunities and challenges that this trend brings to the FDI environment in Viet Nam.
1. The context of digital economic and e-commerce development in Viet Nam:
1.1 Market size and growth:
– For e-commerce platforms:
- In 2024, the size of Vietnam’s e-commerce market is estimated to exceed 25 billion USD, an increase of about 20% compared to the previous year, according to the Ministry of Industry and Trade and e-Economy SEA 2024 reports (Vietnam Investment Review, Vietnam’s e-commerce market surpasses $25 billion in 2024, January 3, 2025).
- Four major platforms – Shopee, Lazada, TikTok Shop, Tiki achieved a total GMV of about 13.8 billion USD, up 40% over the same period (VNExpress International, Vietnam’s e-commerce explodes in 2024, January 30, 2025).
– For the digital economy in general:
- Viet Nam aims to have the digital economy contribute 20% of GDP by 2025 and increase to 30% of GDP by 2030. Accordingly, the proportion of the digital economy in each industry and field will reach at least 10% by 2025, doubling by 2030. Along with that, Vietnam also aims to be in the top 30 leading countries in information technology, competitiveness index, and innovation by the end of this decade (VnEconomy, Digital economy contributes 30% of GDP by 2030, what should Vietnam do? 24/6/2025).
- 5G is growing rapidly and becoming popular globally, accounting for 22% of total global mobile subscribers. From the current 1.9 billion subscribers, it is forecast to increase to 5.6 billion 5G subscribers, accounting for 60% of global mobile subscribers (VnEconomy, Digital economy contributes 30% of GDP by 2030, what should Vietnam do? 24/6/2025).
1.2 Infrastructure and legal corridor:
- Law on Electronic Transactions 2023 and guiding decrees in progress create a transparent legal environment for digital investment and business activities.
- Investment in telecommunications infrastructure, data centers and digital payment ecosystems is attracting the attention of many international investors.
2. Impact of digital economy on FDI trends in Viet Nam:
- Technology growth: Vietnam has become an attractive destination for investors in the technology sector, especially e-commerce and fintech.
- Support policy: The government has implemented many policies to encourage investment in the digital economy, including tax incentives and technology infrastructure development.
- Supply chain transformation: Many international companies invest in Vietnam to take advantage of competitive labor costs and favorable investment environment, especially in electronics manufacturing and renewable energy.
- Challenges and opportunities: Vietnam needs to improve the quality of infrastructure and human resources to effectively attract FDI in the context of a growing digital economy.
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3. Opportunities and challenges for FDI enterprises in the field of e-commerce in Vietnam:
| Opportunity | Challenge |
| – Large domestic market: nearly 80 million Internet users, high proportion of young population, increasing online shopping habits. –Investment attraction policy: Viet Nam applies many tax incentives and supports investment procedures for digital and high-tech enterprises.- Strategic geographic location: Convenient connection with technology centers of China, Korea, Singapore… – Young and flexible human resources: Many good engineers, low labor costs, easy to train. | – The legal framework is still being completed.:Although Viet Nam has made much progress, regulations on personal data, taxes in the digital economy, and consumer protection are still in the process of being finalized. – Competition is getting fiercer:The strong presence of the “big guys”like Shopee, Lazada, Tik Tok Shop pose a big challenge for new investors in the e-commerce sector. – Cybersecurity and data privacy:FDI enterprises need to strictly comply with the Law on Cyber Security, standards on security, encryption and domestic data storage. |
4. Orientation to attract FDI in the digital economy:
- Perfecting the legal framework: It is necessary to update legal regulations in line with the rapid development of technology, while enhancing network security and safety and controlling high-tech crimes.
- Digital Human Resource Development: Promote digital skills training at all levels, especially at universities and within agencies and businesses.
- Digital infrastructure investment: Building modern telecommunications, data and digital payment infrastructure to meet digital transformation needs and attract investment.
- Administrative reform: Moving towards a smart administrative apparatus, synchronizing digitalization of State activities at all levels.
- Priority to attract high-tech FDI: Focus on attracting investment in high-tech industries such as AI, IoT, cloud computing, and building FDI plans associated with local strengths.
The strong development of the digital economy and e-commerce is opening a new chapter for FDI attraction in Vietnam, not only in terms of quantity but also in terms of quality and technology content. To seize this opportunity, Viet Nam needs to continue to improve its institutions, invest in infrastructure, develop human resources and comprehensively reform the business environment, thereby affirming its position as a strategic destination for FDI capital flows in the digital age.
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