Development Opportunities for Vietnam’s Blockchain Market

The global blockchain market, including the NFT (Non-Fungible Token) sector, is experiencing unprecedented growth. Vietnam has emerged as a notable player in this space, drawing significant interest and investment. This article examines the burgeoning blockchain market in Vietnam, highlighting the development opportunities and potential challenges.

Record growth in the global blockchain market

In 2021, the global blockchain industry witnessed remarkable success, with capital investments reaching an astonishing US$25 billion. This represents a nearly 700% increase compared to the previous year. This surge in investment underscores the immense appeal of blockchain technology to investors. Notably, many domestic businesses and investment funds have actively participated in this thriving sector.

Vietnam's blockchain phenomenon

Vietnam has become a standout player in the global blockchain arena. Among the Top 200 blockchain companies worldwide, seven are based in Vietnam. The country ranks among the top five nations in blockchain technology adoption, with an acceptance rate of this innovative technology five times higher than in the United States. According to a report by Markets and Markets, the blockchain-related market in Vietnam is projected to reach nearly US$2.5 billion by 2026, representing a fivefold increase from 2021. This impressive growth presents significant opportunities for Vietnamese businesses.

Expanding blockchain applications

Blockchain technology is not confined to the financial sector alone. It is being increasingly applied across various industries. For instance, traditional businesses are exploring blockchain applications in sectors such as e-commerce. Companies like Tiki and Fado are at the forefront of integrating blockchain technology into their operations.

Vietnam is currently undergoing a digital transformation, which involves incorporating substantial technological advancements. Early adoption of emerging technologies, such as blockchain, can provide a competitive edge in this evolving landscape. With over two million new workers entering the job market each year, including 300,000 to 400,000 graduates in technology-related fields, Vietnam possesses significant potential for blockchain development.

Legal and regulatory framework

One of the major challenges to widespread blockchain adoption in Vietnam is the regulatory environment. During a recent blockchain conference marking the launch of the Vietnam Blockchain Association, Mr. Pham The Truong, Director of NGS Technology Investment Joint Stock Company, emphasized that Vietnam has the conditions necessary to become a leading blockchain country. However, regulatory hurdles remain a significant barrier.

Deputy Minister of Science and Technology Tran Van Tung acknowledged this issue, stating that the Ministry would review and enhance the legal framework to facilitate the research, development, and application of blockchain technology. The Ministry also plans to allocate resources to support blockchain research and development.

Addressing human resource needs

In addition to legal and regulatory challenges, the availability of skilled human resources is crucial for Vietnam's blockchain development. Over the past year, the blockchain industry has generated more than 4,000 job opportunities. These opportunities are driven not only by traditional industries transitioning to blockchain technology, such as Tiki and Ahamove, but also by foreign companies investing in Vietnam.

Organizations like the Vietnam Blockchain Association are collaborating with educational institutions, including Da Nang University of Architecture and the University of Science and Technology, to develop structured training programs for students. Despite these efforts, blockchain businesses also require expertise in communication, Search Engine Optimization (SEO), and recruitment to succeed.

Conclusion

Vietnam's blockchain market is poised for significant growth, driven by increasing investments, expanding applications, and a favorable digital transformation environment. However, addressing regulatory challenges and ensuring a skilled workforce are critical to realizing this potential. As the market evolves, Vietnamese businesses and investors have a unique opportunity to capitalize on this burgeoning sector, contributing to Vietnam's position as a key player in the global blockchain landscape.