The Southeast Asia E-commerce Report 2025 shows that the region’s digital economy is expected to surpass USD 300 billion in Gross Merchandise Value (GMV) in 2025, driven by continued strong growth in e-commerce, food delivery, transport, and online travel services. Video commerce and artificial intelligence (AI) have become key growth engines, with 68% of consumers influenced by AI-generated recommendations. Although startup fundraising has declined, investment in AI continues to rise significantly.

The 10th edition of the Southeast Asia E-commerce Report, released by Google, Temasek, and Bain, indicates that the digital economy of Southeast Asia is on track to exceed USD 300 billion in GMV by 2025, which is 1.5 times higher than projections made a decade earlier. Since 2016, the region’s GMV has increased 7.4-fold, while revenue has grown more than 11-fold and is expected to reach USD 135 billion in 2025. For the first time, the report covers all 10 ASEAN member states, providing a more comprehensive view of the region’s digital economy.

E-commerce remains the primary growth driver, with GMV projected to reach USD 181 billion in 2025, up 16% from 2024. The overall digital economy, including transport, delivery, and various online services, is expected to reach USD 299 billion. Key drivers include the rapid rise of video commerce, which is forecast to account for 25% of total e-commerce GMV, and the increasing influence of AI, as 68% of consumers say their purchasing decisions are shaped by AI recommendations.

Several sectors are showing strong growth: food delivery is expected to rise 14% to USD 22 billion; transport services are projected to grow 16% thanks to subscription models and cost-sharing; and online travel is set to increase 11%, although trip durations are shortening due to higher costs. However, the startup fundraising environment remains subdued due to economic volatility, even as AI investment provides new momentum.

ASEAN’s digital economy is shifting from a phase of hyper-growth to sustainable expansion. E-commerce, online media, digital financial services, and AI continue to scale up. Notably, the region is emerging as a new AI hub, with more than USD 2.3 billion invested in over 680 AI startups in the past year, along with a sharp increase in data center infrastructure.

Source: Compiled by the Multilateral Trade Policy Department, Ministry of Industry and Trade of Viet Nam