In 2025, Vietnam continues to attract strong inflows of foreign direct investment (FDI). The country strengthens its position as a leading destination in Southeast Asia. One key driver of this shift is the rapid growth of the digital economy and e-commerce. This expansion has reshaped international investment trends toward Vietnam. DNP Viet Nam Law Firm will analyze the major impacts of this emerging trend. The following article will highlight both the opportunities and challenges facing Vietnam’s FDI environment.
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, Vietnam’s e-commerce market continued its strong growth. The market size is estimated to exceed USD 25 billion this year, representing an increase of approximately 20% compared to 2023. These figures come from data released by the Ministry of Industry and Trade and the e‑Economy SEA 2024 report. (Source: Vietnam Investment Review, January 3, 2025)
- The four major platforms—Shopee, Lazada, TikTok Shop, and Tiki—continue to dominate the market. Their combined gross merchandise value (GMV) reached approximately USD 13.8 billion, marking a 40% increase compared to the same period last year. (Source: VNExpress International, January 30, 2025)
– For the digital economy in general:
- Vietnam aims for the digital economy to contribute 20% of GDP by 2025. By 2030, this figure is expected to rise to 30%. Each sector is targeted to have the digital economy account for at least 10% of its value by 2025, with that share doubling by 2030. Vietnam also strives to join the world’s top 30 countries in information technology. Additional goals include improvements in global competitiveness and innovation indexes. The country sets the end of this decade as the deadline to achieve these objectives.
(Source: VnEconomy, June 24, 2025) - 5G networks are expanding rapidly and becoming increasingly widespread across the globe. Currently, 5G accounts for 22% of total global mobile subscriptions, with around 1.9 billion subscribers worldwide. Projections suggest that by next year, this number will rise to 5.6 billion, making up approximately 60% of all global mobile subscriptions. (Source: VnEconomy, June 24, 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 Vietnam
– 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.
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: Vietnam 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.
5. Conclusion
The strong growth of the digital economy and e-commerce opens a new chapter in attracting foreign direct investment (FDI). In Vietnam, FDI is not only increasing in volume but also improving in quality and technological sophistication. To seize this momentum, Vietnam must continue institutional reforms and invest in synchronized infrastructure. At the same time, the country should focus on workforce development and comprehensive business environment reforms. These efforts will help Vietnam strengthen its position as a strategic destination for FDI. This marks a significant step forward amid the global acceleration of digital transformation.
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