Vietnam, a high potential blockchain market

The global blockchain market was valued at US$4.67 billion in 2021 and is expected to reach US$7.18 billion in 2022, and US$163.83 billion in 2029, at an annual growth of 56.3 percent.

Truong Gia Binh, Chair of the FPT Corporation and of the Vietnam Software and IT Services Association (VINASA), said blockchain data storage provides protection against counterfeiting, transparency and decentralization.

Many countries have put blockchain into residence management, electronic identity

Although initially used mostly for cryptocurrency trading, blockchain has been introduced into a growing range of fields. Countries such as the UAE, Estonia, Luxembourg and Switzerland, for example, have put blockchain into residence management and electronic identity systems, while IBM, Amazon, and McKinsey have brought Blockchain into supply chain management. "The world will save US$450 billion annually due to counterfeit identification and reduce hundreds of thousands of deaths caused by counterfeit drugs when blockchain is applied in these areas," said Binh.

"As a software developer for the past 20 years, we will continue to support technological innovation, integrating the Metaverse (virtual universe) into the real world. Blockchain with outstanding advantages will facilitate the development of a new universe," Binh added.

Vietnam is a high potential market for blockchain

According to a MarketsandMarkets report, the blockchain-related device market in Vietnam is expected to reach nearly US$2.5 billion by 2026, a five-fold increase compared to 2021. Vietnam currently has about 10 startups in the field with capital of more than US$100 million.

The Vietnamese government has created legal corridors for new technologies to serve the national digital transformation, including Decision 942/QD-TTg in June 2021 approving the country's e-government development strategy. The PM has assigned the State Bank of Vietnam to research and build a cryptocurrency development and management mechanism based on blockchain technology for piloting during the 2021-2023 period.

Phan Duc Trung, Vice President of the Vietnam Blockchain Association said that while traditional databases only track records for single entities, blockchain connects a group of entities and allows data to be synchronized among independent related parties, opening up new applications in the global economy.

Vietnam is rated as one of the world's fastest growing countries. However, innovative solutions are required in order to maintain sustainable growth. To that end, Vietnam is implementing a comprehensive national digital transformation and its leader are keen on any new technologies that can create breakthrough growth and development, including blockchain technology.

Quynh Nga