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DIGITAL ECONOMY DEVELOPMENT IN ASEAN COUNTRIES AND POLICY
IMPLICATIONS FOR VIETNAM

2
Nguyen Thi Thu Huong* , Truong Quang Hoan , Pham Viet Linh 3
1
1 Hanoi Open University, Hanoi, Vietnam.
2 Vietnam Academy of Social Sciences, Hanoi, Vietnam.
3 International School, Vietnam National University, Hanoi, Vietnam.
(*E-mail: huongntt.kt@hou.edu.vn)

ABSTRACT
The Association of Southeast Asian Nations (ASEAN) has witnessed rapid growth in
its digital economy, attributable to proactive efforts in establishing various platforms and
initiatives to address relevant challenges and capitalize on opportunities. Within ASEAN,
Singapore and Malaysia are distinguished as leading digital economies. This article utilizes
secondary documents and data from both Vietnamese and international sources,
employing a comparative approach to elucidate key policies and achievements in the
digital economy development of Singapore and Malaysia. Singapore has implemented
several policies to enhance its digital economy, notably the Smart Nation Initiative.
Similarly, the Malaysian government has prioritized digital economy development since
the late 1990s, with the introduction of the Malaysia Digital Economy Blueprint in 2021
being a significant initiative. Consequently, the digital economy has substantially
contributed to the gross domestic product (GDP) of Singapore and Malaysia, accounting
for 18.6% and 23.4%, respectively. It has been a major catalyst for innovation and social
progress in both countries. Like Singapore and Malaysia, Vietnam is also endeavoring to
advance its digital economy through various strategies and methods. Drawing from the
experiences of Singapore and Malaysia, Vietnam must enhance its workforce's digital
skills and improve its digital infrastructure, including information and communication
technology (ICT), data, and cloud centers. Vietnam should also promote coordination
between government agencies, the business sector, and educational institutions to
improve training outcomes, as well as engage in international cooperation to develop its
digital economy, with a focus on cybersecurity, database, and information system
management.
Keywords: Digital economy, policy, Singapore, Malaysia, Vietnam.

1. Introduction
The digital economy has emerged as a significant force in the global economy,
capturing the interest of many nations in recent years. This sector includes everyday
economic and business activities involving people, companies, and government bodies, all
supported by the ICT industry. Often associated with the internet economy, the digital
economy involves commercial transactions and interactions facilitated by online
platforms, mobile applications, artificial intelligence (AI), and the internet of things (IoT).
In 2022, the digital economy accounted for over 15% of the world's GDP and grew 2.5
times faster than the traditional economy's GDP over the past decade (World Economic
Forum, 2022). Forecasts indicate that by 2030, the digital economy's growth will
accelerate, contributing nearly one-third to the global GDP and creating 30 million jobs
(Arya, 2023).

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