Vietnam has more than 16.6 million people who own cryptocurrency, ranking second in ASEAN after Thailand.
Vietnam is the world’s leading country in cryptocurrency adoption for 2021 and 2022. Vietnam is also the country with the second largest percentage of cryptocurrency holders in ASEAN after Thailand and is one of the top five countries in blockchain.
According to the Vietnam Crypto Market Report 2022, Vietnam has more than 200 active blockchain projects, spanning many fields and developing mainly in GameFi, DeFi and NFT, web3, infrastructure, and wallets.
According to Data.ai, on average, every day, Vietnamese people spend 3.9 hours playing games, 10 per cent higher than Americans. Vietnam also has five names in the list of the top 10 largest game publishing companies in Southeast Asia, Australia, and New Zealand (ANZSEA), including Amanotes, OneSoft, GameJam, VNG, and Arrasol. The number of blockchain game projects accounts for the majority, about 28.8 per cent, of the Vietnamese Crypto market.
The recently released Vietnam Crypto Market Report 2022 by Coin98 Insights shows that, in the Vietnamese market, DeFi projects are still in the early stages of development, not focusing much on finding revenue and profits.
However, this is also a segment with attractive revenue, accounting for 38 per cent of the total market revenue in the first 8 months of 2022. The DeFi segment accounts for 26 per cent of the Vietnamese crypto market with prominent DeFi projects.
Bright spots about Vietnam’s blockchain
It is not difficult to cite Vietnam’s bright spots on the world blockchain map. Among them, a special mention is the game Axie Infinity developed by Sky Mavis — a game studio headquartered in Ho Chi Minh City, co-founded by CEO Nguyen Thanh Trung (born in 1992) and four other people.
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Axie Infinity has become a global technology phenomenon by attracting hundreds of thousands of gamers from all over the world. As of the afternoon of March 29, Axie Infinity had a capitalization value of AXS coin of about US$4 billion (according to Coinmarketcap.com), but before that, there was a time when the capitalisation of AXS coin also jumped to over US$10 billion — and became the most expensive blockchain game of all time.
Representatives of Axie Infinity also attended Binance Blockchain Week. Not only this very famous game but a series of other startup projects in blockchain technology, such as Thetan Arena, Coin98, and Elemon, also made a strong impression.
Coin98 Finance, a decentralised finance (Defi) ecosystem, is not only famous in Vietnam but also in the world, participating as one of the core contributors. Thereby, representatives of this ecosystem want to convey the right messages and a realistic view of how the blockchain market, in general and the decentralised finance sector, in particular, are developing.
As one of Vietnam’s successful projects, contributing a lot to the world blockchain, a Coin98 Finance representative shared that blockchain, Crypto, or DeFi are all in the completion stage to serve the mass market.
Each individual and organisation participating in the market, in addition to finding profitable investments, also has the responsibility to contribute to the development of the entire industry. Coin98 is proud to be one of the Vietnamese projects contributing to Binance Blockchain Week 2022.
Evaluating blockchain development in Vietnam, Lynn Hoang, a representative of Binance Southeast Asia, said that Vietnam ranks in Binance’s top 10 markets across many product lines. In 2021, the Vietnamese blockchain community has reaped many sweet fruits.
Among them, many projects built by Vietnamese people have become global symbols in several fields. According to Hoang, in the past, due to many objective and subjective reasons, Vietnam was often behind the world in technology. But now, blockchain technology is making Vietnam a leading country in a new field.
Blockchain has gradually become a pillar of technology in Vietnam
A representative of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) also mentioned some challenges in applying blockchain for banks. Accordingly, there must be barriers to investment in technology infrastructure and integration.
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High research and infrastructure investment costs, along with the need to integrate and synchronously convert with other systems and infrastructure, require time to edit the system and optimise costs to ensure business performance and information security and safety.
Blockchain platforms require banks and bank customers to pay service fees, making expanding the customer portfolio and service efficiency on the blockchain platform challenging.
Besides, the ability to expand networks and connect multilaterally is a need of many banks. Only when the blockchain network is truly large enough to connect subjects, including subjects in countries worldwide, can transactions proceed smoothly and completely.
A representative of the Blockchain Association said that in some forums, the lack of legal basis had been raised as a main obstacle to applying blockchain technology. However, there are very few opinions that specifically state what the legal obstacles to the application of blockchain technology are and how to amend them to facilitate the application of blockchain technology.
Most ideas for applying blockchain technology focus on digital assets, digital currency, and capital mobilisation. These are very high-risk areas, so it is necessary to build a Sandbox mechanism for testing. To protect this aspect, the Government has assigned the Ministry of Finance, the Ministry of Justice, and the State Bank to coordinate research, proposals, and implementation.
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