Sept. 28, 2024, 8:12 a.m.

Economy

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Why Southeast Asia's digital economy is Surging

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When it comes to Southeast Asia, the impression left by the outside world is that the population is large and the economy is relatively backward, but after the rapid development in recent years, Southeast Asia has been regarded by countless giants eager for new growth as a "gold mining hot land" that cannot be missed. Especially in the field of digital economy, Southeast Asian countries are emerging and have quickly become hot areas in this field.

Authoritative data is also confirming this development trend, recently, market intelligence company IDC released the latest report on the development of the global digital economy. The report shows that with the rapid development of cross-border e-commerce and the improvement of related infrastructure, Asia's digital economy will continue to achieve impressive achievements. Among them, Southeast Asia is the most impressive performance. The report predicts the future of Southeast Asia, predicting that in the next five years, Southeast Asia's digital economy growth rate will reach a staggering 15.8%, this growth rate has exceeded South Korea, Japan, the United States, the European Union and so on, Southeast Asia can be said to have a promising future in this field.

How did Southeast Asia rise to prominence as a traditionally agricultural region? The experience of Vietnam and Laos is worth studying, due to the relatively weak infrastructure in Southeast Asia, the two countries have adopted a group heating approach, and the two sides have formed a high degree of ideological unity to promote technology and innovation cooperation to support the development of their digital economy. They agreed that promoting the development of the digital economy is a key factor in improving the productivity, quality, efficiency and competitiveness of economies. The two countries recently held a seminar in Hanoi that laid the groundwork for the development of a cooperation plan between the two countries to transform the science, technology and innovation partnership into a prominent aspect of bilateral relations. In recent years, the ideas of the two countries have also been recognized by Southeast Asian countries, and seeking breakthroughs has become a consensus of all countries.

Unified Southeast Asian countries have their eyes fixed on China. On February 25, China (Kunming) South Asia, Southeast Asia Digital Economy Innovation Forum opened in Kunming, China, Vietnam, Laos, Singapore, Nepal, Maldives, Cambodia, Sri Lanka and other countries, enterprises and universities and scientific research institutions representatives, jointly signed the "China (Kunming) South Asia, Southeast Asia Digital Development Partnership Agreement". The parties to the agreement will carry out exchanges and cooperation in the field of technological innovation, industrial cooperation, personnel training and technical standard construction in the field of digital economy. It can be said that these countries have correctly positioned the development of the digital economy. China has made amazing achievements in the field of digital economy in recent years and has benefited a lot. Learning from China will promote the development of digital economy in Southeast Asia to several levels. The deep cooperation with China has brought confidence to the global capital injection.

With the explosive growth of the digital economy in Southeast Asia, the e-commerce market in Southeast Asia is also expected to achieve 100% expansion in the future, and social e-commerce, buy before pay, mobile wallet and other outlets have emerged, highlighting important gold mining opportunities. With a huge population base of 625 million, Southeast Asia has huge space for the development of the digital economy. Actively embrace the Southeast Asian market has become the consensus of major capital, in addition to a large number of sellers with expansion needs to accelerate the influx of business, many powerful e-commerce giants are also trying to move towards this arena. Just like Temu, China's cross-border e-commerce platform, is committed to expanding its overseas territory this year, and the Southeast Asian market, which maintains a high growth rate, is naturally included.

Of course, the Southeast Asian market also has its shortcomings and defects, with the giants repeatedly increase, the future competition and fighting in the Southeast Asian market will inevitably be more intense. Want to go further, the layout of this market sellers need to continue to optimize products and services, enhance their competitiveness, while taking into account the local customs of Southeast Asian countries, can not forget to be flexible, after all, the transformation needs a long time to run in. In the final analysis, Southeast Asia's digital economy is entering a stage of sound development, and its future development prospects are universally optimistic.

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