The Vietnam Blockchain Association wants to transform the region’s digital landscape – here’s how
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With the use of blockchain technology seemingly growing exponentially with each passing year, it stands to reason that this still nascent market will continue to penetrate and find use cases across a range of technology sectors including healthcare, supply chain management, cross-border transfers, etc. in short term.
In this regard, conservative estimates suggest that the global blockchain industry, which had a cumulative value of $5.92 billion in 2021, is set to grow at a compound annual growth rate (CAGR) of 85.9% between 2022 and 2030.
This is also why a number of governments have actively sought the use of this technology as it is to help strengthen their internal data processes by making them more frictionless.
To this point, the Vietnam Blockchain Association (VBA), a legal entity that connects members of the Vietnamese blockchain community with one another, is bringing the country’s products to the world while attracting more international resources.
The association has entered into a strategic partnership with leading cryptocurrency exchange Binance to promote the use of this rapidly developing technology across the country and surrounding regions.
According to available data, Vietnam is one of Asia’s technological hotbeds that boasts one of the fastest growing economies in the world. The country is an ideal bedrock for the distribution of various blockchain offerings, especially since local regulators and government officials have time and again shown great interest in research and development (R&D) of this mature domain.
In fact, the Vietnam Blockchain Association (VBA) and Binance have revealed that their collaboration comes in lieu of local governments pledging to promote blockchain technology research/application and human resource training across the country.
This will primarily be done to bridge the technological gap that exists between the country’s current technological framework and the demands of various companies that have been looking to make inroads in the region for some time now.
Why the VBA and Binance partnership is a game changer
The creation of the Vietnam Blockchain Association (VBA) and its aforementioned partnership with Binance has created major ripple effects across the global tech landscape and rightly so.
This is because Binance is arguably one of the most popular crypto/blockchain firms in the world, with the company recently closing a new $500 million investment fund. with the support of leading global institutional investors to assist in the development of various Web 3.0 and blockchain projects throughout their lifecycle.
To elaborate, this specific strategic partnership will allow Vietnam to maximize its growth prospects, especially since the country’s economy was ravaged by the recent Covid-19 pandemic, which resulted in its GDP (gross domestic product) falling quite sharply in the past couple of years.
It is also worth noting that in recent years, an increasing number of countries have begun to rapidly adopt digital assets and their associated technologies. This is because most regulators and governments have begun to understand the enormous social, technological and economic potential of these assets.
So far, the crypto/blockchain industry as a whole is poised to grow to a value of $32.4 trillion by 2027, expanding at a CAGR of 58.4%.
A large portion of this money has the potential to make its way into developing economies like Vietnam since the nation has time and again shown a keen eye for blockchain and crypto technology.
Coupled with the fact that Binance is currently licensed to operate in Italy, France, Dubai, Abu Dhabi and Bahrain, there’s no telling how lucrative this partnership could be for Vietnam’s tech sector potentially ushering in a new era of innovation where the region’s local tech talent can find well-paying avenues without moving abroad.
A radical transformation is underway
According to Ngo Duc Thang, director of the Vietnam Cipher Committee, the use of various blockchain-enabled services will spur the “fourth industrial revolution” in Vietnam, adding that the partnership between VBA and Binance will not only help the growth of the global crypto sector, but also generate a lot of local employment.
Thang noted,
“In the coming time, the government will continue to facilitate, encourage and promote early stage businesses to proactively accelerate the digital transformation process where blockchain technology is the backbone.”
From a purely macroeconomic perspective, it is estimated that the blockchain/crypto industry will generate a whopping 40 million jobs by the end of the decade. Many of these opportunities will make their way into the Asian market, allowing many talented/skilled individuals across Vietnam to reap long-term financial security/stability in the process.
Marketing Blockchain Applications
Recently, Nguyen Van Tung, Vietnam’s Deputy Minister of Science and Technology, stated that in the coming years, he expects his nation to lead the way in the development of blockchain technology, adding:
“Hopefully, the association (VBA) will use its resources for blockchain technology and science projects so that Vietnam can create outstanding products, become an active player in the global blockchain market, and nurture the industry talents of the future.”
In this regard, a large number of Vietnamese institutions are currently researching and using blockchain across various sectors such as banking, industrial production, energy, agriculture, healthcare, retail, etc.
As the crypto/blockchain industry continues to rapidly mature, the Vietnam Blockchain Association’s (VBA) partnership with Binance will transform the country into a tech superpower by attracting investment from around the globe. It will therefore be interesting to see what the future looks like from here.
Huy Nguyen is the co-founder and CEO of KardiaChain.
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Featured image: Shutterstock/Sergey Nivens
