HCM CITY— Blockchain is increasingly taking centre stage in the IT industry and is expected to help develop Việt Nam’s economy, according to the Ministry of Information and Communications.

Speaking at the two-day Blockchain Festival Vietnam which ended in HCM City on May 25, Dr Đào Đình Kha, director of the ministry’s Department of Information Technology, said blockchain is one of breakthrough technologies of the 4th industrial revolution, and can help develop many different areas of Việt Nam’s economy and society.

“This technology could potentially cause problems,” he admitted, explaining it would disrupt the traditional business structure and have an influence on many segments of the economy and society.

“So ensuring this technology benefits when is very important. A legal framework is needed to resolve potential problems.”

He said the Government is holding discussions with Vietnamese and foreign blockchain experts and companies to draft policies and the legal framework for the technology.

The ICT sector is one of Việt Nam’s key focus areas and is considered one of the driving forces for economic development.

The IT sector has benefited from Government policies, especially with respect to taxation and infrastructure incentives, he said.

Lê Ngọc Giang, a legal and policy expert from the Ministry of Justice of Việt Nam, said: “Policy makers in the country should give the new technologies space and avoid imposing restrictive laws before initial ambiguities are resolved.”

 They should make implicit subsidies explicit, be clear about risks and start planning for levelling the playing field, he said.

“Blockchain can help reduce fraud and contamination and increase the transparency in the production process.

“It is associated with the agriculture supply chain.” 

The technology also offers solutions for energy, environment and financial inclusion, he said.

“The first thing is that application of blockchain is still in its early days. We need more applications and more users for it to be used by more people.  The second is that blockchain can provide thousands of opportunities that were not available for those people. More than 25 per cent of applicants in blockchain technology [seek] financial inclusion.”    

According to Dr David Nguyen, president of the Việt Nam Chamber of Commerce in Singapore, more technical blockchain outsourcing will be done in Việt Nam for global clients.

So more educational and training centres for blockchain would be established in the country to attract and train people, he added.

Hubery Yuan, dean of the Huobi Academy of Blockchain Application, said Việt Nam is also a very young market with 40 per cent of the population being less than 24 years old, and such a demographic offers the country a better chance to accept new concepts and innovations.

“We’ve seen Việt Nam already showing its power in blockchain.”

The Blockchain Festival Vietnam was held by Huobi Pro, the world’s third largest digital asset exchange. — VNS