Vietnam's Billion-dollar Opportunity in Blockchain Economy

Blockchain is the most promising technology field that Vietnam can equal or even surpass many developed countries in the world.

Rosie Nguyen

ngtrang12.ftu@gmail.com January 11, 2022 | 15:13

Vietnam's Billion-dollar Opportunity in Blockchain Economy

The amount of investment money poured into the Blockchain field in the world has increased dramatically in 2021. Photo: CB Insights

While 2021 was a disaster year for many different economic sectors, it was also a boom year for the Blockchain field.

Blockchain emerges as a phenomenon in the overall picture of the world economy in 2021. Last year, the world Blockchain indexes have grown strongly.

According to CB Insights, the amount of funding for this field also quadrupled in just one year, from US$3.1 billion in 2020 to US$15 billion in just the first nine months of 2021.

Vietnam is a bright spot in the global Blockchain world. Many Vietnamese enterprises have been gaining positions in the international market.

Previously, it was difficult for Vietnamese companies to compete with other technology enterprises in the world. This gap seems to have narrowed in the Blockchain world, where the starting point of the countries is not much different.

According to Chainalysis, Vietnam is a perfect example of a country where the level of participation in cryptocurrency transactions far exceeds the ranking of the economy.

Although only ranked 53rd in GDP with about US$262 billion and is ranked as a low-middle-income country, Vietnam still has a fairly high level of adoption for cryptocurrency transactions.

Vietnam ranks 10th out of 154 countries on the Global Cryptocurrency Adoption Index. This is one of the rare indexes where Vietnam has the same rank as developed countries such as the US, China or South Africa, even higher than many other developed countries such as the UK, France and Germany.

Vietnam currently ranks 10th on the Global Cryptocurrency Adoption Index. This shows that Vietnamese people are very open to Blockchain technology.

Finder's survey conducted with 42,000 people across 27 countries also shows that Vietnam is the country with the highest rate of cryptocurrency adoption.

41% of Vietnamese respondents confirmed to have bought cryptocurrency. 20% of Vietnamese respondents said they bought Bitcoin. This is the highest of all surveyed countries.

In fact, Blockchain can be applied in almost all economic and financial industries, manufacturing industries, healthcare, education, tourism, and services.

That is also the reason why over 80 countries have been researching and implementing Blockchain technology into CBDC - Central Bank Digital Currency. Many major banks around the world also set up funds, processing networks and programs to support the operation of cryptocurrencies.

In a recently Tech Summit, Tran Huyen Dinh, founder and CEO of AlphaTrue, said that Vietnam can apply Blockchain in digital transformation.

"However, to do this, we need to pay attention to building more application "bridges" to connect with each other and develop together.

For example, a website can build more platforms to expand and connect technology platforms. That helps shorten the gap between traditional businesses and technology,” Dinh said.

Virtual lands of Vietnamese businesses have been successfully sold for US$2.5 million. Photo: VNN

When asked about the applicability of Blockchain, Nguyen Thanh Trung, founder of Sky Mavis said, in theory, Blockchain technology has many applications. However, at present, that is not necessarily true in reality.

Blockchain has just been put into application in life for 4 years. In the future, Blockchain may be applied in financial management or the real estate market to create a transparent and public buying and selling market. We will probably see more Blockchain applications in the future.

The author of the billion-dollar game Axie Infinity once said that Vietnamese people are good at jobs that require meticulousness and have great potential in technology. They just lack a bit of product perspective and thinking.

With Blockchain, Vietnam has potential, but currently does not have enough human resources. This will be the problem that our country needs to find a solution to take higher steps in developing and creating a billion-dollar industry thanks to Blockchain technology.