Digital Connectivity Emerges as Key Driver of Women’s Income Growth in Vietnam

A new ADB and Sun Yat-sen University study finds that digital connectivity in Vietnam is significantly increasing incomes for women-headed households, especially among rural, low-income, and less educated groups. The research shows that better internet access is creating more service-sector jobs and helping reduce economic inequality through inclusive digital growth.

As Vietnam rapidly transforms into one of Southeast Asia's leading digital economies, a new study suggests the country's internet revolution is doing more than boosting online shopping and smartphone use. It is also helping women earn more, especially those living in rural and low-income communities.

The study, published by the Asian Development Bank (ADB) and researchers from Sun Yat-sen University, found that digital connectivity has significantly improved incomes for women-headed households across Vietnam. Pinghan Liang and Yichuan Zhang conducted the research from Sun Yat-sen University and Shu Tian from ADB's Economic Research and Development Impact Department.

Using data from more than 90,000 households between 2018 and 2020, the researchers explored how internet access and digital infrastructure are affecting family incomes and employment opportunities.

A Fast-Growing Digital Economy

Vietnam has experienced a remarkable digital transformation over the past decade. Internet access has expanded quickly, with more than 73% of the population using the internet by 2022. Broadband networks now reach nearly every village, while smartphone ownership has surged across the country.

The country's digital economy, valued at $23 billion in 2022, is expected to double by 2025 nearly. Online businesses, e-commerce, food delivery, digital payments, streaming services, and technology manufacturing are all growing rapidly.

According to the study, this growth has created millions of new jobs, especially in the services sector. These jobs often require less physical labor and offer more flexibility, making them more accessible to women.

Women Are Benefiting the Most

The study found that households headed by women gained more from digital connectivity than those headed by men. Families with internet access earned significantly more income overall, but the increase was particularly strong among women-headed households.

Researchers say digital technology helps women overcome traditional barriers to employment. Online work, digital businesses, e-commerce, and app-based services allow women to work more flexibly and connect with larger markets.

The report also found that women in disadvantaged groups benefited the most. Rural women, low-income households, and women with lower levels of education experienced the largest income gains from digital access.

This suggests that internet connectivity may be helping reduce economic inequality rather than widening it.

Rural Areas See Strongest Impact

One of the report's key findings is the strong impact of digital connectivity in rural communities. Women living in rural areas often face limited job opportunities, poor access to markets, and fewer educational resources.

The internet is helping change that.

Researchers found that better digital infrastructure created more opportunities in sectors such as online retail, transportation services, food delivery, and digital entrepreneurship. Rural women were increasingly able to participate in these growing industries.

The study also highlighted that provincial-level internet infrastructure mattered more than just individual household access. Areas with stronger digital networks created more employment opportunities overall, especially in service industries.

Challenges Still Remain

Despite the positive findings, the study warns that many women still face barriers in accessing the digital economy. Internet affordability, low digital literacy, limited technology education, and online safety concerns continue to affect women's participation.

The authors argue that governments must go beyond simply expanding internet coverage. They recommend targeted policies such as affordable internet access for low-income families, digital skills training for women, safer online environments, and better support for women entrepreneurs.

The researchers also caution that many digital jobs remain informal and unstable. To ensure long-term benefits, women need greater access to formal digital employment and higher-quality jobs in technology and professional services.

Still, the report presents Vietnam as a strong example of how digital transformation can support inclusive economic growth. As the country continues investing in technology and connectivity, the internet may become one of the most powerful tools for improving opportunities for women and reducing inequality across society.