Currently, globally, one of the fastest gateways to the digital economy is blockchain technology. This technology is increasingly recognized as a crucial factor in the digital economy. Many startups are developing products and services based on blockchain platforms (quochoi.vn). Despite the vast potential for application in enhancing the socio-economic life of Vietnam, one of the biggest questions raised is whether Vietnam has a legal framework to support the adoption of blockchain technology.

Some Legal Regulations Concerning Blockchain Technology Globally

In other countries, the application of blockchain technology has been clearly categorized between the Fintech sector and other fields. Moreover, assets in these countries are also divided into four main categories (government-issued currency, e-government currency, virtual gaming currencies, and digital assets).

Switzerland is one of the pioneers in the blockchain field. The city of Zug in Switzerland is home to several blockchain companies and offers flexible and robust tax policies for blockchain companies.

China can be considered a hotspot for the blockchain boom in fundraising and financial speculation. However, experts in China believe that blockchain technology can also address other real-world issues.

In the United States, each state has passed different laws regulating blockchain technology. The U.S. seems to have numerous state-level laws governing the legal status of blockchain technology. However, it is evident that the regulations regarding blockchain in these states are not yet fully specific, and there is no unified national regulation regarding blockchain (aita.gov.vn).

Global Adoption of Blockchain Technology (Source: theasianbanker.com)

Opportunities for Legal Policies on Blockchain Technology in Vietnam

One of the major challenges faced today is the lack of clear legal policies and frameworks. According to the report on the Project approved by Decision 1255/QD-TTg, implemented by the Ministry of Justice, Vietnam still lacks a precise definition or specific legal framework to promote the development and application of blockchain technology.

However, in many of the Vietnamese government’s decisions, blockchain is becoming one of the technologies prioritized for research, development, and application, including:

  • Decision No. 100/QD-TTg: “Approval of the Project to Implement, Apply, and Manage New Technologies for Enhancing the Efficiency of Tracing Systems,” which includes: Implementing projects and research tasks for the application of technologies such as blockchain, IoT, AI, Big Data, and others that align with global development trends.

  • Decision No. 2117/QD-TTg (2020) of the Prime Minister on the priority list of technologies to be researched, developed, and applied for proactive participation in the Fourth Industrial Revolution.

  • Decision No. 749/QD-TTg: The National Digital Transformation Program until 2025, with a vision to 2030, identifies blockchain as a core technology to be prioritized for research and development to leap ahead and create strong breakthroughs.

  • Decision No. 942/QD-TTg: The Strategy for the Development of E-Government Towards a Digital Government from 2021 to 2025, with a focus on “Research, Build, and Pilot the Use of Virtual Currencies Based on Blockchain Technology.”

These government decisions provide the foundation for the development of blockchain technology. This is an opportunity for the blockchain community to implement and expand projects, which also explains why the Vietnamese blockchain market attracts global investors.

Vietnam is also undergoing the integration of the Fourth Industrial Revolution. To seize the opportunities and face the challenges of this revolution, Vietnam has created an environment conducive to the development of new technologies, including blockchain, through seminars, exchanges, and pilot application studies.

Challenges in Applying Blockchain Technology in Vietnam

There are several challenges in applying blockchain technology in Vietnam, especially for startups. In addition to the high costs and the need for specialized teams in blockchain, the incomplete legal framework requires startups to find solutions, such as establishing representative offices in countries with clearer legal foundations for easier operations and fundraising.

Blockchain Solutions in Vietnam

The Vietnam Blockchain Company (VBC), founded in 2016, has conducted extensive research into blockchain technology and the potential of the blockchain market to develop the most optimized blockchain-based solutions for businesses across various sectors of the economy and society.

The success of VBC’s projects is based on clear premises:

  • Blockchain technology is considered the final piece in the set of new technologies from the 4.0 industrial revolution, pioneering the automation and synchronization of data on digital platforms.

  • VBC has a valuable workforce trained by experts from reputable technology universities such as the University of Danang.

  • The practical effectiveness of projects using blockchain technology has been demonstrated, including the project "Blockchain Application to Address Workers' Issues" in partnership with Jupviec.vn, supported by the U.S. Government and the Asia Foundation (TAF).

The success of VBC's projects is proof that "Blockchain technology brings benefits to Vietnamese society." This has motivated global experts to focus on and participate in Vietnam's blockchain centers.

Conclusion

From a technological standpoint, some experts argue that "Blockchain is not hindered by legal frameworks." With the potential of being a "hot" market, Vietnam is expected to have a clear direction in the future to differentiate blockchain technology according to its application sectors. This would help accelerate the completion of the legal framework and keep pace with global technological development trends.

To establish a legal framework for blockchain technology, the Vietnamese legislative bodies should consider amending and refining relevant laws to align with the socio-economic development of Vietnam while ensuring compatibility with the international economic market (quochoi.vn).

Furthermore, the government and relevant authorities need to have a roadmap for enabling officials at all levels to understand the issues and facilitate the transformation. This includes developing a blockchain business community and workforce capable of competing in the global market, starting from the domestic market.

Ultimately, raising awareness about blockchain technology among Vietnamese citizens is crucial, as is ensuring that risks to the economy, the public, and businesses in Vietnam are mitigated.