A bold institutional shift
According to experts, Vietnam has rapidly embraced blockchain technology, particularly in the banking and finance sector. The technology is being applied in interbank money transfers, international payments, electronic invoice tracking, and the conversion of physical asset into digital ones. Transactions on blockchain platforms help reduce cost, shorten processing time, eliminate intermediaries, and increase transparency.
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Vietnam has jumped into the global bandwagon of crypto asset management and experimentation with multiple policies. (Photo: en.vietnamplus.vn) |
Alongside this technological adoption comes powerful institutional momentum. On October 22, 2024, the Government issued Decision No. 1236/QD-TTg on the National Strategy for Blockchain Application and Development through 2025, with a vision extending to 2030. Two months later, the Politburo issued Resolution No. 57-NQ/TW on breakthrough development in science - technology, innovation, and national digital transformation, identifying blockchain as one of the strategic technologies prioritized for development until 2030.
To realize this vision, the Government issued Decision No. 1131/QD-TTg, defining blockchain among Vietnam’s strategic technologies, on June 12. Just two days later, the National Assembly passed the Law on Digital Technology Industry, a historic milestone establishing a clear and transparent legal corridor for the sector, especially recognizing digital assets for the first time.
According to Nguyen Phu Dung, Director of PILA Group, developer of the NDChain, Vietnam’s blockchain ecosystem includes the NDAChain, NDADID – Decentralised Identity Platform, NDARTrace – National Platform for Product Identification, Verification, and Traceability, and NDAKey – Digital Identity Management Application. The platforms allow the country to master its technology and extend blockchain applications to administration, agriculture, trade, and exports, the areas where transparent data is essential.
Nguyen Thi Minh Tho, Deputy Director of the State Bank of Vietnam’s Department of Anti-Money Laundering, underscored that the management of crypto asset management must adhere to global standards on anti-money laundering, counter-terrorism financing, and capital flow supervision.
After Vietnam was placed in the grey list of the Financial Action Task Force (FATF) in 2023, the Government pledged 17 corrective actions, including establishing a digital asset management mechanism. The Law on Digital Technology Industry and the Government’s Resolution 05 on giving the go-ahead for the five-year pilot of crypto asset trading provide a legal corridor recognizing digital assets as legitimate, paving the way for sustainable development of the market.
Strict yet flexible
According to Tho, Vietnam has chosen the path of managing for development, and controlling risks without stifling innovation. Organizations providing digital asset services must operate like financial institutions, implementing the know-your-customer (KYC) protocols, reporting suspicious transactions, storing data for a period of at least ten years, and carrying out technology monitoring. She said they are a shield to ensure market transparency and protect the investors.
Meanwhile, To Tran Hoa, deputy head of the Department of Securities Market Development under the State Securities Commission, described the issuance of the Government’s Resolution 05 as a historic move, aligned with the goal to build an international financial center in Ho Chi Minh City and Da Nang city.
From the business perspective, Phan Duc Trung, Chairman of the Vietnam Blockchain and Digital Asset Association, said strict regulation is necessary. With a minimum charter capital of 10 trillion VND (379.42 million USD) and security systems exceeding those of securities firms, the framework filters out speculative players.
The pilot phase may start quietly, but it is the cost of building long-term digital trust, Trung explained.
Vo Trung Tin, Vice Chairman of the HCM City Blockchain Association, stressed that policies must prevent misuse of blockchain initiatives for purposes contrary to the State’s major orientations, while swiftly weedong out harmful projects, ensuring that truly valuable blockchain applications thrive.
Prof., Dr. Phan Trung Ly, former Chairman of the National Assembly’s Committee for Legal Affairs, held that the digital asset market opens a new sphere of economic value, encompassing cryptocurrencies, tokens, Non-fungible token (NFTs), data, and smart contracts, resources that can directly contribute to GDP and the digital economy. For sustainable market development, a legal framework should be refined as it is a strategic breakthrough for Vietnam’s next development phase.
He stressed the significance of clearer definitions of digital assets, ownership rights, taxation, dispute resolution, investor protection, and cybersecurity, as well as consideration of a specialized regulatory agency. Policy must ensure security and privacy while creating room for innovation. In the meantime, the country should pay due attention to legal - technical human resources training and development of a vibrant startup ecosystem meeting international standards.
Source: VNA