Vietnam Leads Southeast Asia in AI Adoption

Google’s annual report shows that, alongside advances in e-commerce, digital finance, and video commerce, Vietnam now leads Southeast Asia in consumer AI adoption and user confidence.

Contactless payment is becoming increasingly popular

According to the 10th annual e-Conomy SEA 2025 report by Google, Temasek, and Bain & Company, Vietnam’s digital economy is expected to reach US$39 billion in gross merchandise value by the end of 2025. With a 17% increase compared to the previous year, Vietnam becomes the second fastest growing digital economy in Southeast Asia.

The report also said that Vietnam is witnessing a strong rise in Digital Financial Services (DFS), with the total value of digital payment transactions projected to reach US$178 billion in 2025, reflecting the rapid nationwide shift toward cashless transactions.

Double-digit growth across key sectors

All key sectors of the digital economy are recording double digit growth. E-commerce continues to be the largest contributor to Vietnam’s gross merchandise value (GMV), accounting for two thirds of the total digital economy and is projected to grow 17%, reaching US$25 billion by the end of 2025.

The growth of the digital economy is not driven by e- commerce alone. Transportation and food delivery remain the fastest growing segments in Vietnam, with GMV expected to rise 20%, reaching US$5 billion in 2025. Vietnam is also experiencing rapid adoption of electric vehicles (EVs), supported by government incentives and demand from transport platforms.

The online travel sector is projected to grow 16%, reaching US$4 billion. Supported by favorable visa policies and international marketing strategies, this growth reflects both the recovery of international visitors, particularly from Asia and Europe, and the resilience of the domestic travel segment.

Vietnam has particularly established its leadership in Southeast Asia regarding AI readiness and user trust. This is reflected in three key metrics: 81% of users interact with AI tools and features daily; 83% participate in AI learning and upskilling activities; and 96% are willing to share data access with AI agents.

User interaction with AI is already producing commercial impact, with revenue from AI integrated applications increasing 78% over one year, as of mid-2025. Users turn to AI primarily for three reasons: saving time when searching and comparing information (44%); accessing 24/7 customer support (35%); and reducing costs through better offers and incentives (30%).

Vietnam currently hosts more than 40 active AI startups. The market recorded US$123 million in private AI investment over the past year, representing 5% of total AI investment in the region during the same period. Additionally, 79% of investors expect funding into Vietnam to continue growing, particularly in software, services, AI, and deep tech sectors.

According to Marc Woo, Managing Director of Google Vietnam, Vietnam’s digital economy is demonstrating strong momentum, driven by users accessing and applying AI effectively in daily life and work. “With 81% of users interacting with AI tools daily, Vietnam’s digital environment is increasingly dynamic and adaptable, keeping pace with modern trends. Vietnam has become and continues to be one of the most important markets in Southeast Asia’s digital technology development, contributing to higher productivity and creating added value across multiple sectors,” emphasized Marc Woo.

New drivers fueling comprehensive growth

According to Google’s annual report, the DFS sector is becoming one of the key growth areas in Vietnam. The total transaction value through digital payment methods is projected to reach US$178 billion in 2025, reflecting the growing adoption of digital platforms across the market.

Within DFS, online lending services are experiencing strong momentum, ranking as the second fastest growing financial segment in the region, with a compound annual growth rate of 22% from 2024 to 2025.

Vietnam currently has around 30 million active e- wallet accounts, supporting cashless payments and VietQR transactions, targeting 80% of e commerce transactions to be cashless by 2030. The QR payment system is also compatible with Thailand and Cambodia, opening additional opportunities for trade and tourism between these countries.

Beyond digital finance, video commerce is emerging as another major driver of digital growth, with scale and growth rate ranking second in Southeast Asia. The number of transactions and participating sellers has increased 60% year-on-year, reflecting rapid consumer adoption of shopping via video and commerce content. This strong growth indicates that video commerce is becoming a significant development path in the digital economy, creating new business opportunities and expanding models for enterprises nationwide.

On Vietnam’s outlook, Erik Pot, Partner at Bain & Company, said that Vietnam is emerging as one of the most dynamic markets. With the digital economy expected to reach US$39 billion by 2025, Vietnam demonstrates how trust and technology can combine to drive large scale growth. He added that current opportunities truly lie in how businesses leverage AI as a tool to create value while carefully balancing the specific structure of the economy.

By Thu Ha, Vietnam Business Forum