Internet contributes 0.9pct to Vietnam’s GDP

McKinsey & Company Global Management Consulting Co on April 25 released its survey results in its “Online and future trends” report that was conduced in 30 countries, including Vietnam.

In Vietnam, the survey results showed that the business efficiency of small and medium sized enterprises (SMEs) increased 19 percent thanks to Internet. Specifically, Internet contributed 0.9 percent of gross domestic product (GDP), of which a considerable part came from the segment of personal consumption and contributed 1.6 percent of total 14.4 percent GDP growth in Vietnam.

Contribution rate of 0.9 percent is equal to that in Turkey and Morocco, higher than that in Russia, but much lower than the contribution at 4.1 percent in Malaysia, 3.2 percent in India and 2.6 percentin China.

Deputy Minister of Information and Communication Le Nam Thang said the internet has developed strongly in Vietnam, with more than 30 million internet users out of the nation’s total population of 87 million.

He said the robust growth of the telecommunication and information technology sectors in recent years will potentially create breakthroughs for the Vietnamese economy, helping Vietnam integrate more deeply into the world.

The Vietnamese Government considers the internet as important national infrastructure, assisting other sectors, he said.

According to Shaowei Ying, deputy director of Singapore office, McKinsey & Company firm, “Electronic Commerce in Vietnam has great potential for development, but this market has not been invested properly for the development.

More than one third of Internet users in Vietnam are accessing sales or online auction websites. According to a survey for Internet users in Vietnam, more than 50 percent of them believe that shopping online helps them access a more diversified and richer product portfolio”

 

Category: Business