Vietnam Blockchain Union is launched on April 21, 2022 (Photo: VBU)

Bao Tram: 2021 was obviously a watershed year for the Vietnamese blockchain industry. Blockchain is helping Vietnam advance in technology. How have state management agencies responded, Dr. Tuan?

Minh Tuan: One of noticeable thing is the support of Party and State leaders for the field. Last year the Prime Minister directed the State Bank of Vietnam to work on a pilot cryptocurrency project. On March 23, Deputy PM Le Minh Khai asked the Ministry of Finance, the Ministry of Justice, and the Central Bank to develop a legal framework for cryptocurrency and virtual assets. The Ministry of Science has already promulgated documents to guide and call for more studies and projects to turn blockchain into a prioritized high-tech industry. But there are unresolved issues. Vietnam hasn’t got a legal framework and no penalties for fraud. Without a legal framework, users are not protected. Many start-ups establish their company abroad, even though most of their activities take place in Vietnam.

Mr. Hoang Viet Tien

Bao Tram: How can Vietnam turn its brain drain into a brain gain, Mr. Tien?

Viet Tien: This is a concern for individual investors who want to develop new apps. The State needs to speed up building a legal framework for blockchain. A ‘sandbox’ for the technology is a feasible proposal for the current Vietnamese market. That model could help Vietnam become a hub for start-ups, like Singapore, and businesses from around the world could come to Vietnam to do business in compliance with international law. Once we have a legal framework to support legitimate businesses, we can strongly develop blockchain products in Vietnam. This is an opportunity for many start-ups to enter the market.

Bao Tram: Though Vietnam has kept up with blockchain trends, I understand that this is mainly in the field of games and cryptocurrency. Is that true? Which other areas can use blockchain technology and why has Vietnam only focused on two fields?

Minh Tuan:  Blockchain is useful not just for cryptocurrencies and games. The essence of the technology is to ensure the reliability of data, especially in the Fourth Industrial Revolution with everything digitized or based on data. Blockchain technology ensures that no one, including administrators, can change the data. For that reason, blockchain technology can be applied in any sector that needs high security, like finance. In Vietnam, blockchain technology has been used in other areas. CMC, one of Vietnam’s leading technology corporations, for example, has developed a blockchain-based traceability platform. It has also collaborated with the Institute of Post and Telecommunications Technology to launch a blockchain-based certification management platform. The two apps help prevent counterfeiting. In addition, blockchain technology can be used in health care, traffic control, and even the arts. For example, beauty contests in Vietnam like Miss Universe Vietnam have used the technology for voting to ensure transparent results and have used it for 3 years. In this field, Vietnam is one of the pioneers.

Viet Tien: In Vietnam, people used to think of Bitcoin or virtual money as a potential scam. In fact, Bitcoin is just one blockchain product. Due to a limited understanding of blockchain, the public and state management agencies didn’t welcome the technology and that kept people from participating in blockchain development or establishing blockchain alliances.

Dr. Dang Minh Tuan

Bao Tram: According to Ms. Lynn Hoang, Director of Binance Southeast Asia, Vietnam ranks in the top 10 Binance markets across multiple product lines. According to you, Dr. Tuan, where is Vietnam on the world blockchain map?

Minh Tuan: It’s difficult to say exactly where Vietnam ranks because there are various criteria. But in some areas of blockchain technology, Vietnam is among the top countries, and the Vietnamese blockchain community has been drawing great interest from the world community. Two or three months ago, Vietnam participated in the 9^th Global Blockchain Conference in Dubai. This month, Changpeng Zhao, the founder of Binance, the largest crypto exchange, visited Vietnam. Next month, the Vietnam Blockchain Union will host the 10th Global Blockchain Conference. The nine previous conferences were held in Dubai. Though this means Vietnam has written its name on the world blockchain technology map, I can’t say which position it holds now, because I haven’t got enough statistics.  

Bao Tram: Thank you, Dr. Dang Minh Tuan, Chairman of the Vietnam Blockchain Union, and Mr. Hoang Viet Tien, representative of the Vietnam Internet Association, for giving us an overview of the current Vietnamese blockchain market.