The Vietnam Blockchain Association (VBA) has unveiled an ambitious strategy aimed at advancing blockchain adoption and attracting international investment. Presented during the WOW Summit 2024 in Bangkok, the “Global to Local” initiative is designed to integrate global blockchain advancements into Vietnam’s economy while fostering local innovation. The VBA also introduced a sandbox model, enabling businesses to test blockchain technologies in a controlled environment before wider implementation.
Against the backdrop of Vietnam’s rapidly growing crypto market, the strategy aligns with the country’s burgeoning interest in digital assets. According to a recent report by Chainalysis, Vietnam ranks as the fifth-largest nation in terms of crypto asset adoption, with over 20 million citizens actively holding cryptocurrencies. The past year alone saw an influx of approximately $120 billion in crypto capital, a figure that accounts for more than 25% of the nation’s GDP.
Prime Minister’s Blockchain Vision and National Strategy
To capitalize on this momentum, Vietnam’s Prime Minister issued a National Strategy on Blockchain Development in late 2024. This plan aims to position Vietnam as a regional leader in blockchain technology, leveraging its growing crypto user base and integrating blockchain solutions across various sectors. The VBA has taken a proactive role in facilitating this strategy by fostering international collaborations and proposing regulatory sandboxes to test new technologies.
A key aspect of the strategy involves digitizing real-world assets (RWA) to support secure and transparent international transactions. By incorporating stablecoins and cryptocurrencies into local payment systems, Vietnam hopes to attract more international tourists and investors, further strengthening its digital financial infrastructure.
Emphasizing Regulatory Compliance and Financial Security
During the WOW Summit 2024, VBA representative Tran Huyen Dinh emphasized the need for blockchain solutions to adhere to international legal frameworks. This focus on compliance is deemed critical to ensuring the sustainable development of blockchain technology. He highlighted that as global interest in digital assets grows, robust legal and regulatory measures are essential to mitigate risks and promote trust.
The importance of data sharing in anti-money laundering (AML) and counter-terrorism financing (CFT) efforts was also underscored. In this context, the VBA’s ChainTracer initiative has emerged as a significant tool. Since its launch in 2022, ChainTracer has successfully recovered over $2 million from digital fraud cases in Vietnam and produced more than 50 reports to aid investigative agencies. This initiative demonstrates the potential of blockchain technology to enhance financial security and combat fraud.
Inspiration from International Sandbox Models
Vietnam’s sandbox proposal draws inspiration from successful international models, such as the Financial Conduct Authority (FCA) in the UK. The FCA’s sandbox has enabled over 700 companies to participate in regulatory trials, facilitating innovation and securing more than $1.3 billion in investments across fintech and emerging technologies. VBA aims to replicate this success, fostering a conducive environment for domestic blockchain enterprises to thrive and integrate with the global technology ecosystem.
Strengthening International Cooperation
At the WOW Summit, the VBA further solidified its international ties by signing a Memorandum of Understanding (MOU) with WOW Summit Hong Kong. This partnership seeks to enhance knowledge sharing and promote collaborative efforts between Vietnam and the global blockchain community.
The upcoming WOW Summit 2024, expected to attract over 7,000 attendees and 150 speakers from 30 countries, will serve as a vital platform for Vietnamese businesses to engage in discussions around Web3, AI, fintech, and blockchain. This event is anticipated to open doors for networking and partnerships, further embedding Vietnam within the global technology landscape.
Elevating Vietnam’s Blockchain Ecosystem
The establishment of the Vietnam Blockchain Association marks a significant milestone in Vietnam’s journey toward becoming a blockchain hub. By supporting local enterprises and facilitating their participation in international projects, the association aims to drive investment, innovation, and the adoption of blockchain technology across various sectors.
With its dual focus on global integration and local innovation, Vietnam is poised to play a pivotal role in the evolving digital economy, setting a benchmark for other nations in the region.