Vietnam may benefit $9-17 bln annually from metaverse by 2035: Deloitte

The potential economic impact of the metaverse by 2035 in Vietnam may reach $9-17 billion per year, according to Deloitte's The Metaverse in Asia: Strategies for Accelerating Economic Impact report.

The report noted that the potential GDP impact estimates of the metaverse globally range from $1.5 trillion per year by 2030 and $3 trillion per year by 2031. For Asia Pacific, a report by the Analysis Group estimates that the net contribution to GDP could be $1.28 trillion per year by 2031.

About Vietnam, the report noted the country’s macroeconomic determinants, including the ICT sector accounting for 0.75% of the gross value added (GVA), but the figure is expected to grow per Vietnam’s digital ambitions and the “Make in Vietnam” strategy.

Besides, Vietnam is ranked 48th in the world on the Global Innovation Index 2022 and second among 34 lower-middle income economies.

Vietnam's GDP per capita stood at $10,338 in 2020, suggesting that affordability of required immersive hardware on average may be a limiting factor on the economic impact of the metaverse, the report notes.

Regarding technological fundamentals, one strength is that the country was one of the first developing countries to implement 5G trials in 2019 and rolled out 5G deployment in 2022.

The Ministry of Information and Communications targets to achieve nationwide 5G coverage within one year, prioritizing industrial and high-tech parks and dense urban centers. The ministry has already set up a steering committee to promote 6G research and development.

Smartphone penetration is high at 68% and can increase to 85% by end 2022. Given affordability challenges, mass smartphone ownership may provide an entry path to metaverse experiences, albeit limited immersivity, Deloitte wrote.

A prospective sector in Vietnam is gaming, according to the consultancy. The country accounted for 22% of all games downloaded in Southeast Asia, second to Indonesia with 38%. With a high smartphone penetration rate, mobile gaming forms the largest segment and is growing exponentially. Average mobile gaming revenue per user grew at a compound annual growth rate (CAGR) of 30% over the past five years.

With the support of the Ministry of Information and Communications, the Vietnam Game Development Alliance was formed in June 2022 with 60 online video game companies and a 10-member Coordination Committee including VNG, Vietnam Esports, and Viettel Media.

Another sector with high potential is education. Vietnam’s e-learning market is projected to reach $3 billion by 2023, the report says.

The country was ranked among the top 10 growing Edtech markets globally, posting annual growth rates of 44%, according to the Vietnam Edtech Report 2021. With a growing demand for skilled labor in the manufacturing and tech sectors, the Vietnamese government has set a goal to make online education available at 90% of universities and 80% of secondary schools and vocational training facilities by 2030.