Blockchain Technology on the Rise in Vietnam

With an increase in blockchain technology applications and rapid, large-scale digital transformation, Vietnam has the potential to compete in the global market and become a hub for technology. It is estimated that by 2030, blockchain will create 40 million jobs, and 10-20% of the country’s economic infrastructure will run on blockchain-enabled systems.

Blockchain is a form of data storage and transmission technology using encryption. Its transparency in data sharing is the reason countries and the finance, logistics, and retail industries are investing heavily in its application. Earlier this year, Vietnam launched the first official legal entity for blockchain, the Vietnam Blockchain Union. It brings together enthusiasts for blockchain technology research and application throughout Vietnam.

Speaking at a recent event on blockchain technology, a representative from the union stated that the country is a leader in terms of encouraging research and application of new technology in everyday life. The government has supportive policies on digital development and transformation. The country is also open to exploring emerging technologies, allowing start-ups in the country to develop rapidly.

Experts believe that Vietnam could be a hub for blockchain projects, with many businesses, scientists, and engineers pursuing the research and application of the technology in the country. It is vital to create a legal framework for blockchain, create favourable conditions for research and development, and optimise resources. It is also important to revise the legal framework for international capital raising, making it easier for start-ups.

Vietnam is one of the five leading countries in blockchain, and there are currently about 10 innovative Vietnamese start-ups in the field with a capitalisation of over US $100 million. Among the top 200 companies developed based on blockchain technology, seven are founded by Vietnamese people.

The Vietnam Blockchain Union was established under a decision issued by the Ministry of Home Affairs. It was set up to promote the nation’s digital economy, making Vietnam a top global contender in terms of emerging technologies. It connects blockchain organisations and communities around the world and enables members to share experiences and resources to research, test, apply, deploy, and trade blockchain technology. It also attracts investment for the blockchain industry and trains and develops digital human resources. As reported on OpenGov Asia, the Vietnam Blockchain Union aims to raise community awareness and guide the development of legal corridors, standards, and regulations in the application and creation of products and services on the blockchain technology platform.

Currently, blockchain is mainly applied in the financial sector, especially in digital assets and currencies. Countries around the world are forming policies and laws to regulate this technology. For example, the Central Bank of Indonesia recently announced plans to issue a wholesale digital rupiah, intended to be the only legal tender for digital transactions in the country. The Bank is exploring technical options with counterparts and working to enhance cybersecurity measures. The central bank digital will be distributed to large banks and payment service providers, which will, in turn, sell the currency to smaller banking institutions, enabling various retail transactions.

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