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The Digital Age: Unlocking Vietnam’s Financial Potential and Overcoming Bottlenecks

6 December, 2024

On December 3rd, the Vietnam Tech Impact Summit 2024 (VTIS 2024) was held at the National Convention Center, attracting significant attention from the tech and finance community. The summit shared knowledge and creative ideas while discussing the legal framework for digital assets, a crucial factor for the sustainable development of Vietnam’s digital economy.

The tech boom of the past decade, especially in the field of digital assets such as blockchain, cryptocurrency, tokenization, and decentralized applications (DeFi), has created unprecedented opportunities. VTIS 2024 focused on both the golden opportunities and the legal challenges that need to be addressed to foster sustainable growth.

At the summit, leading experts highlighted the importance of establishing a transparent legal framework to protect investors and businesses while maximizing the potential of digital assets. They emphasized that a clear and transparent legal framework is essential to creating a safe and sustainable environment for investors, businesses, and the community to thrive.

Nguyen Duy Hung, Chairman of the Board of SSI Securities Corporation, painted a comprehensive picture of Vietnam’s digital asset market. He pointed out that Vietnam possesses significant advantages, including a young and tech-savvy population, along with a growing interest in digital assets. Citing a Forbes study, he noted that Vietnam ranks second in the world in terms of ownership and interest in digital assets. Additionally, some of the world’s largest exchanges have ranked Vietnam as one of the four most vibrant markets.

However, Mr. Hung emphasized that to maximize the potential of digital assets, a core element is transparency and clarity in the legal framework. This foundation enables investors, businesses, and the community to develop within a safe and sustainable environment. Currently, the lack of a clear framework presents challenges, causing businesses in the blockchain and digital asset industry to operate without proper guidance, putting them at a competitive disadvantage compared to neighboring countries like Singapore and Thailand. Moreover, the absence of regulations leaves users vulnerable to fraudulent and opaque activities.

Mr. Hung warned about opportunities slipping away as foreign investors and large technology corporations tend to favor countries with more favorable legal environments.

“As deep insiders in the technology and digital asset market, we believe that establishing a legal framework for digital assets in Vietnam is not only a demand of enterprises but also a necessary condition to promote the development of the technology industry in particular and the economy in general,” shared Mr. Hung.

Mr. Nguyen Duy Hung, Chairman of the Board of SSI Securities Corporation: To maximize the potential of digital assets, a core element is transparency and clarity in the legal framework. (Photo: Vietnam+)

He recommended that the government promptly issue a clear and transparent legal framework to regulate activities related to digital assets, thereby building trust among investors and market participants. He also suggested that management agencies should support innovative enterprises in the blockchain and digital technology industry through investment encouragement policies, research funding, and international cooperation. Additionally, he emphasized the urgency of establishing flexible management mechanisms to protect users without hindering the creativity that is intrinsic to digital assets.

To effectively develop the digital market, Mr. Hung highlighted the importance of international cooperation in the field of digital assets, leveraging the experience of developed countries to establish an efficient legal framework suited to Vietnam’s characteristics. He expressed his desire for the government to soon issue a transparent legal framework, support innovative enterprises, build flexible management mechanisms, and promote international cooperation. These, he believes, are the necessary conditions for Vietnam to become a regional hub for digital assets.

A Safe Haven in the Digital Age

At the conference, Truong Gia Binh, Chairman of the FPT Corporation, passionately discussed the global situation, Vietnam’s opportunities, and the significance of technological impacts in the new era.

Mr. Binh believes that the world is entering an unprecedented historical phase, filled with instability and unpredictability, with many elements in a state of flux. However, a new world is also taking shape. Regarding Vietnam, Mr. Binh emphasized the importance of “engaging” with the future, both from the perspective of the workforce, anticipating that technological trends will cause about 75% of domestic jobs to disappear by 2030, and from the perspective of organizations, which need to be prepared to withstand and maintain business operations.

Regarding Vietnam’s position and strength, he expressed optimism, stating that the country is gaining prominence on the global technology map. He cited the example of NVIDIA Corporation choosing Vietnam as its “second home” and highlighted Vietnam’s position as the second-largest software exporter after India. Moreover, Mr. Binh believes that Vietnam possesses a tech engineering force that many other countries desire.

“We can find Vietnam’s ‘face’ in technology everywhere in the world, from AI, Blockchain, Fintech, Edtech, Gaming… Vietnamese people – Vietnam’s tech force can do it all,” affirmed Mr. Binh, emphasizing the capabilities and global presence of Vietnamese people in the tech industry.

Mr. Truong Gia Binh, Chairman of the Board of FPT Corporation: Vietnam is gaining prominence on the global technology map. (Photo: Vietnam+)

Therefore, he agreed with the above viewpoint, stating that policies are the most critical factor in removing bottlenecks and creating a better future. He quoted the statement of General Secretary To Lam about the need to eliminate outdated and ineffective ways of thinking and replace them with new policies. He also referred to the principle that “what private enterprises can do, state-owned enterprises do not need to do” and expressed his hope that these would bring about outstanding growth for the country with the participation of all constituents.

Emphasizing Vietnam’s international standing and its connections to global markets, Mr. Binh shared his optimism: “Vietnam has developed diplomatic relations at the highest level with all the major powers in the world and continues to expand such relations. On this plane, Vietnam is connected to all markets by the latest trade decrees, and we are a safe place. We have every opportunity.”

Speaking at the conference, Ho Ky Minh, Vice Chairman of the People’s Committee of Da Nang city, stated that the city is determined to develop an international financial center, combined with high-tech fields such as semiconductors and AI. So far, Da Nang has made specific preparations in terms of infrastructure, land funds, human resources, and policies, and is actively seeking support from the Government and central ministries and branches.

Mr. Minh shared that the city’s plan to develop the financial center includes three main groups of services. International financial services will focus on international payments, international trade, foreign exchange, and green finance. Notably, Da Nang’s leaders emphasized the connection between the financial center and the Da Nang Free Trade Zone, the first area in Vietnam to be allowed by the National Assembly to be established.

The summit shared knowledge and creative ideas while discussing the legal framework for digital assets. (Photo: Vietnam+)

Additionally, Fintech services will aim at new financial services such as providing software and application platforms for payment and transaction of encrypted assets. According to Mr. Minh, Da Nang hopes to develop AI, big data, cloud computing, and blockchain-based innovation solutions. The city will also have policies to support startups and new Fintech companies. Finally, there will be audit, accounting, legal, and customs consulting services to support investors during their investment process in the financial center.

Hanh Nguyen