There are many reasons why Vietnam is keen on Web3. The country’s tech-savvy population, a thriving tech sector, government initiatives, and widespread interest in blockchain and cryptocurrencies are some of the reasons why Vietnam is so keen on Web3. So, we asked: Is Web3 on the rise in Vietnam?
Is web3 on the rise in Vietnam?
According to a research report by tiger-research, among Asian countries, Vietnam has made outstanding achievements in the development of the Web3 industry in the past two years. This development is based on three main factors.
(1) Vietnam has a large young population who are very interested in new technologies and have a high level of technical skills. This provides a good talent base for the development of Web3 technology.
(2) High Internet penetration rate: Vietnam’s Internet penetration rate ranks among the highest in Southeast Asia, creating favorable conditions for the promotion and application of Web3 technology.
(3) Active start-ups: Vietnam’s entrepreneurial ecosystem is becoming increasingly mature, and many start-ups have entered the blockchain and Web3 technologies, driving innovation and development in this field.
On September 29, 2023, a seminar on "Application of Blockchain Technology in Digital Economy" jointly organized by the Science, Technology and Environment Committee of the National Assembly of Vietnam and the Vietnam Blockchain Association was held in Hanoi. At the seminar, Le Quang Hui, Chairman of the Science, Technology and Environment Committee of the National Assembly of Vietnam, emphasized the global application of blockchain in various fields such as finance and energy. He also predicted that by 2030, the market value of the blockchain industry will reach trillions of dollars.
Vietnam is slowly but surely changing its stance on blockchain and cryptocurrency. Although there are no concrete legal documents yet, recent government actions indicate that positive changes are coming to this space.
The beginning of regulatory changes related to blockchain in Vietnam
However, the Vietnamese Web3 market faces multiple challenges. The most prominent one is the uncertainty of cryptocurrency regulation, which has seriously affected its business environment. In addition, the lack of deep development skills and insufficient retail liquidity are the main obstacles Vietnam faces in the global Web3 competition. These challenges are important considerations for Vietnam to become a global leader in the Web3 industry.
Vietnam’s Ministry of Finance has raised the possibility of banning or regulating virtual assets by May 2025 as part of its efforts to strengthen anti-money laundering (AML), according to a report from The Register.
The action plan aims to get Vietnam off the “grey list” of the Financial Action Task Force (FATF), an intergovernmental anti-money laundering group set up by the Group of Seven.
FATF's grey list includes countries that have pledged to address identified obstacles to combating money laundering, terrorist financing and proliferation financing within a certain period of time. Countries included in the list will be subject to enhanced monitoring.
Action 6 of Vietnam’s national action plan states that the country will not only develop a legal framework to “prohibit or regulate virtual assets and virtual asset service providers,” but will also “demonstrate the enforcement of regulations, including measures to ensure compliance.”
In September 2023, the Vietnam Bankers Association and the Vietnam Blockchain Association co-hosted a meeting in Hanoi, focusing on strengthening laws and regulations to prevent money laundering in cryptocurrency transactions.
Nguyen Quoc Hung, Vice Chairman and Secretary General of the Vietnam Bankers Association, stressed the importance of the Anti-Money Laundering Law and its related guidelines, which will come into effect in March 2023. He pointed out that the imperfection of the legal framework and the lack of professionals in the field of digital and cryptocurrency have confused banks and state regulatory agencies when dealing with cases involving new asset types. In-depth discussions on anti-money laundering are the beginning of many future blockchain-related regulations and are of great significance.
GM Vietnam 2024 is coming
GM Vietnam 2024 will be held in Vietnam from June 7 to 8, which is the most important blockchain event of the year in Vietnam. GM Vietnam 2024 offers more than just the latest trends in Web3, it combines Vietnam’s rich history and traditions with the world of blockchain to create a unique atmosphere.
At the same time, the HCMC on my MIND theme event co-organized by Beosin will be held in Vietnam on June 8. The event will focus on this year's popular re-pledge and AI fields. At that time, Ryan, Beosin's Southeast Asia business director, will host a roundtable discussion and conduct in-depth discussions and exchanges with industry practitioners.
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It can be seen that Vietnam has shown great development potential in the field of Web3. Its young and technologically proficient population, high Internet penetration rate and active start-ups all provide a good foundation for it. Although regulatory uncertainty remains its main challenge, with the clarification of policies and the strengthening of international cooperation, Vietnam is expected to make greater breakthroughs in the field of Web3 technology and achieve a higher level of development.
