Vietnam announces national blockchain strategy with ambitious 2030 growth targets

The Deputy Prime Minister of Vietnam, Ho Duc Phoc, has signed and issued the National Strategy on Application and Development of Blockchain Technology, signaling the country’s plan to develop the emerging sector. In the announcement on October 22, the Vietnamese government disclosed that the strategy, officially known as Decision No. 1236/QD-TTg, will become fully effective by 2025

According to local reports, Vietnam aims to become a regional blockchain technology power by 2030. It intends to achieve this by developing its blockchain capacity through research, deployment, and application. Going by the strategy, Vietnamese authorities believe blockchain technology has a lot of potential and will be crucial to the next phase of the industrial revolution, and they intend to tap into it.

The strategy reads:

“The application and development of Blockchain technology contributes significantly to building advanced digital infrastructure, ensuring data reliability and security, and contributing to creating a foundation for the development of the digital technology industry.”

In order to achieve this, the government plans to create a national blockchain framework that enables blockchain innovations to thrive. This includes creating special economic zones or testing centers for blockchain products and enabling their launch. The government also plans to attract experts from other countries.

Meanwhile, the government has also proposed five actions to achieve its goals:

“Perfecting the legal environment; Developing infrastructure, forming a blockchain industrial ecosystem; Developing human resources for the Blockchain field; Promoting Blockchain development and application; and Promoting research, innovation and international cooperation.”

Unsurprisingly, several agencies and government ministries are involved in actualizing the plan. These include the Ministry of Information and Communications, Government Cipher Committee, Education and Training, Science and Technology.

Vietnam Blockchain Association to partner with government on Blockchain Strategy

While it is too early to tell how the strategy will play out,  Authorities show they are willing to work with industry stakeholders. A noteworthy part of the Blockchain Strategy is the addition of the Vietnam Blockchain Association (VBA) as a key participant.

According to the document, the VBA and other industry associations and experts are responsible for developing homegrown blockchain networks and platforms. Thus, they will work to promote local blockchain startups and collaboration among industry participants.

Meanwhile, the VBA also acknowledged the importance of the Blockchain Strategy, describing it as a significant milestone for the blockchain sector that shows the government’s intent. The vice president of VBA, Phan Duc Trung, described it as a collective effort towards building  a “transparent, safe, and sustainable digital economy.”

He added that the VBA will ensure that the interests of the nascent industry are well protected and will work to perform its tasks under the strategy of maximizing the benefits of blockchain technology.

Vietnam seeks to improve the legal framework for digital assets

Although the strategy does not focus on digital assets, it aligns with the broader efforts of Vietnamese authorities to regulate the crypto industry. A draft law for regulating the Digital Technology Industry was reviewed in 2023, and the Ministry of Finance is reportedly working on a legal framework to regulate the industry.

This appears to be a priority to tackle financial crimes such as terrorist financing and money laundering. Vietnam’s inclusion The Financial Action Task Force (FATF) added Vietnam to its grey list in 2023, and the country is working towards getting off the list by 2025.

Meanwhile, some regulations could also significantly benefit the country’s crypto sector. Vietnam has one of the highest crypto adoption levels globally, ranking fifth in adoption according to the Chainanalysis list. It is also home to several Web3 participants, including the popular blockchain gaming developer Sky Mavis, who originated from the country.