The Philippines and Vietnam are likely to post the highest growth rate on technology-related purchases of goods and services in 2022, according to a recent report from Forrester Research.
Forrester expects the Philippines and Vietnam will grow by 9.1% and 8.7%, respectively, in the tech sector. Other Southeast Asian nations, like Malaysia and Indonesia, will be close behind.
The rise of tech-driven consumption in Philippines and Vietnam – and the ASEAN region in general – is attributed to the resurgence of business as vaccinations against COVID-19 continue to pick up pace. In addition, the increasing demand for digital services and the growth of innovative startups are catalysts for anticipated growth in the tech sector.
In 2020, PwC reported that 73% of investors had plans to inject up to $5 million in Philippine startups in the following three years. According to the report, the three most promising industries for growth from 2021 to 2024 are fintech, e-commerce, and medical and healthcare tech.
Recently, the Philippine Startup Ecosystem Report commissioned by the Gobi-Core Philippine Fund showed that the country indeed attracted more capital in 2021, compared to the past three years combined.
In 2022, the Philippines will see even more disruptions from tech startups like social media platform Kumu, cloud kitchen operator CloudEats, crypto exchange PDAX, fintech provider Mynt, and gaming brand Mineski.
Vietnam, meanwhile, has seen rapid growth over the last two years. The country’s startup sector has thrived amid the pandemic, with companies like Sky Mavis and MoMo experiencing unprecedented growth.
The government has also indicated an interest in developing 6G, ahead of its neighbors in the region. According to officials, this move will allow Vietnam to improve digital infrastructure, increase the number of digital enterprises, implement data-driven governance, and achieve Industry 4.0.
Furthermore, it is aligned with the country’s rapid adoption of metaverse technologies and applications, such as NFTs and Web3.
Regional growth trends
The growth of emerging tech markets in the Philippines and Vietnam is indicative of a larger trend in the region, where investors are increasingly optimistic about their prospects. In particular, there are growing trends around software, cloud services, and security solutions.
Analysts believe all of this is good news, as it presents new opportunities for growth and expansion. They also note that this growth is not limited to large businesses, as small businesses are also investing in technology at a rapid pace.