ASEAN digital economy set to reach $2 trillion by 2030

This information was shared at a training conference on ASEAN cooperation trends, organised by the Ministry of Information and Communications (MIC) on October 17.

According to speakers at the conference, ASEAN boasts the world's highest growth rate in e-commerce and digital economy, at 21 per cent. Estimates suggest the e-commerce market will hit $300 billion in 2025, with the region's digital economy value reaching $1 trillion by 2030.

Nguyen Viet Chi, deputy director of the Multilateral Trade Policy Department under the Ministry of Industry and Trade, stated that if the Digital Economy Framework Agreement (DEFA) is implemented, the market value could soar to $2 trillion. Additionally, the agreement is expected to impact electronic payment systems positively and enhance consumer protection capabilities.

According to Trieu Minh Long, director of the Department of International Cooperation under the MIC, ASEAN plays an increasingly important role in regional and global cooperation mechanisms, serving as a central player in addressing and resolving many of the world's issues.

"The ASEAN summit was held in Laos a week ago, with ASEAN further stating its central position, along with comprehensive cooperation mechanisms in the region," Long said.

At the conference, experts highlighted the robust development of the ASEAN economic community, aiming to strengthen regional cooperation, promote trade and investment, especially in the context of global digital transformation.

Providing context, Tran Duc Binh, director of the Department of ASEAN under the Ministry of Foreign Affairs, noted that the world and the region are experiencing complex fluctuations, intense competition between major powers, escalating tensions in hotspots, and a global economic recovery fraught with risks.

After eight years of implementing the ASEAN community-building plan, in 2023, the region's GDP grew by 51 per cent, with the economic scale reaching $3.8 trillion, ranking fifth globally. The overall growth rate of the ASEAN community stands at 4.2 per cent.

ASEAN's cooperation mechanism is based on three key pillars, namely political security, economic, and sociocultural. The master plan for building the ASEAN community is progressing evenly across these pillars, with the 2045 vision focused on creating a resilient, dynamic, creative, and people-centred community.

The DEFA negotiations, which launched in October last year, are expected to conclude by the end of 2025. DEFA is expected to serve as a comprehensive document integrating action plans related to digital transformation and the digital economy. This agreement is anticipated to establish a solid foundation for positioning ASEAN as a leading region in the digital economy.

Currently, representatives from the Vietnam eCommerce and Digital Economy Agency, along with the MIC, are actively contributing to the negotiations of the DEFA.

The ASEAN region’s supply chains are being driven through both connectivity and sustainability. Leong Yung Chee, head of Group Corporate Banking at UOB, gave VIR’s Hanh Vy his insights on capturing connectivity flows and the various opportunities available in fast-growing trade corridors in Vietnam.

Foreign direct investment (FDI) inflows to ASEAN reached another historical level of $230 billion in 2023, reinforcing ASEAN's position at the top of FDI recipients among developing regions.

Asset tokenisation offers a significant opportunity for developing countries like Vietnam to engage in the global capital market with efficient capital mobilisation channels and low costs for projects involving real-world assets (RWAs).

In the next 5-10 years, we can imagine a very different future, a world where we will get coffee delivered by drone while we are on the way to work, where we can run global organisations from our own homes, and where plants will not die because they can tell their owners when they need water.