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Vietnam’s blockchain industry: Promising but challenging

Vietnam’s blockchain industry: Promising but challenging

Tuesday 05, 04 2022
Blockchain is a burgeoning industry in Vietnam, helping the country develop in the field of technology and many others. It is standing before great opportunities but accompanied, as well, by challenges to overcome.

Vietnam’s blockchain industry: Advantages and challenges

The appliance of blockchain is considered an inevitable trend, and this technology is booming in Vietnam. This statement was made in the recently held Vietnam Blockchain Expoverse in Dubai in late March.

At Vietnam Blockchain Expoverse, Ms. Gwendolyn Regina, Investment Director of BNB Chain Fund, said that BinanceChain - the blockchain project initiated by the world's largest cryptocurrency exchange, Binance - has grown rapidly in 2021.

Blockchain

Blockchain has become a familiar keyword to the investment community and young people. It is not only applied in cryptocurrency, but it has also spread its influence to many other fields such as Finance (Bitcoin, Altcoin, etc.), Entertainment (GameFi, Game NFT, etc.), Art, Education, etc. It is expected to become a potential field for the startup ecosystem in Vietnam.

Mr. Tran Dinh, CEO of AlphaTrue, a company specializing in developing blockchain products and decentralized finance, claimed that Vietnam is a promised land for advancing the blockchain industry since the country already owns an abundant IT labor source and a large blockchain community. Vietnam possesses favorable and attractive conditions and advantageous elements, such as:

  • Diverse options, low costs. The cost of hiring and operating projects in Vietnam is very competitive, and there are many options to consider.
  • Good scalability. According to statistical data from Stalin, Vietnam ranks in the top 10 countries with the most cryptocurrencies in the world. Therefore, it is important to develop a project in Vietnam for acceptance and recognition from the community.

Besides said advantages, challenges remain for the blockchain industry in Vietnam. Blockchain poses many obstacles for investors, inquiring that they have a broad knowledge to cover the entire market. Therefore, Mr. James Wo, CEO of DFG Group, predicts that venture capital funds will focus more on areas better known, like the metaverse or DeFi.

blockchain industry in Vietnam

In addition, Mrs. Nicole Zhang, Director at Binance Labs, deems the biggest challenge for blockchain investors is choosing a team for investments, especially when the blockchain industry in Vietnam is still at its infantry stage.

Mr. Dinh pointed out three main setbacks of Vietnam’s blockchain industry as followed:

  • Human resources. There are few blockchain experts in Vietnam; most come from other industries such as application development, game development, etc.

  • Infrastructure. In Vietnam, teams often focus on developing applications. As a result, new businesses have a limited number of platforms to build on.

  • Policy. The last difficulty is the new policies in blockchain that companies have yet to gain access to.

The next 5 years

Blockchain will continue to boom in Vietnam in the coming 5 to 10 years. Mr. James anticipates that in the next 5 years, blockchain technology will be more widely applied, with a market that may grow 10 times its current size. The number of blockchain users may even be equivalent to internet users. Ms. Gwendolyn believes that the intersection between areas such as DeFi, GameFi, or NFT will appear in the next 10 years.

Meanwhile, Mrs. Nicole expects that tokens will gradually become assets of long-term value during the upcoming period instead of acting as currencies used for exchange and transactions as of current.

2021 is considered a strong development year for the Vietnamese blockchain industry. The appearance of blockchain is helping Vietnam advance in the field of technology. According to Ms. Lynn Hoang, Director of Binance Southeast Asia, Vietnam ranks in the top 10 of Binance's markets across multiple product lines.

Vietnamese blockchain industry

However, to fuel the maintenance and development of these achievements, help from the authorities and large enterprises is very much needed. Ms. Lynn stated that Binance is making efforts to promote the development of blockchain technology in Vietnam.

In addition, Ms. Dung Nguyen, a senior expert in the innovation ecosystem (under the Ministry of Planning and Investment of Vietnam), affirmed that the Vietnamese government always prioritizes the development of new technologies and identifies technology as one of the spearheads for economic development in the future.

 

Source: thanhnien.vn, vietnamplus

Compiled by VietnamCredit

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