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Vietnam’s legal entity for blockchain to boost digital economy

As the first blockchain organization with a legal entity in the country, Vietnam Blockchain Association is expected to be the catalyst in developing a legal framework and changing the perception of this technology in Vietnam. To catch up with the rapid development of blockchain in Vietnam, an official organization with a legal entity is undeniably needed.

At the Inaugural Ceremony on May 17th, 2022, Vu Chien Thang, Deputy Minister of the Ministry of Home Affairs, recognized their achievements and efforts. He shared his expectation:

“The Association is to protect their members’ legal rights and benefits in researching, establishing standards, developing and applying blockchain technology in all aspects of society, nurturing the human resource that adapts well to the global Industry 4.0, and contributing to socio-economic development.”

Tran Van Tung, Deputy Minister – Ministry of Science and Technology, also congratulated the Association and shared that: “We hope that the association would gather talents to bolster the research and application of blockchain and play a pivotal role in the national digital transformation and developing the digital economy.”

Nguyen Phuong Tuan, Vice Chairman of the National Assembly’s Committee for Science, Technology and Environment, said: “I have high expectations for what the association would need to achieve in promoting digital technology application together with government agencies. Their cooperation with the National Assembly’s Committee for Science, Technology and Environment in outlining and developing policies to accelerate the implementation of digital socio-economy would be crucial.” The National Assembly’s Committee for Science, Technology and Environment was assigned seven technology-related legislative tasks. It showed that the Vietnamese government emphasizes promoting technology in Industry 4.0, heading toward a digital era.

Six objectives of Vietnam Blockchain Association
First, to gather members and utilize resources from Vietnamese blockchain enterprises and talents for the Association’s mission.

Second, to set member standards – which is essential since Vietnam has not had a legal framework. Such a framework will benefit Vietnamese blockchain startups when looking for funding and investment in the future.

Third, to encourage cooperation to exchange professional knowledge.

Fourth, to make blockchain knowledge accessible. Many people are reluctant to research blockchain because of its complexity and assume that it is all about crypto and finance.

Fifth, to promote a legal corridor for blockchain technology. Phan Duc Trung – Vice Chairman of the Association said: “The Association hopes to help members understand the legal environment and existing issues in Vietnam to increase our competitiveness in the region.”

Sixth, international cooperation. The association representative commented that investment capital in the blockchain field in Vietnam is not much compared to the world, even though the global environment may not be as favorable. “There are a lot of chances for international cooperation. With effective policies, we will see huge investment flowing in,” he said.

Six action programmes
The six Action Programmes are the missions that the Association must fulfill. They will partner with many organizations to hold seminars to find the direction for each one.

Firstly, holding a Blockchain Summit in Vietnam that would welcome big corporations and capital investment into Vietnam.

Second, changing the community’s perception of blockchain. Phan Duc Trung remarked that limiting blockchain to finance would create the wrong notion that blockchain is against traditional financial products.

Third, a programme related to Central Bank Digital Currency – CBDC. The government had some clear directions, but Vietnam is still behind on research and application. Phan Duc Trung believes that the Association’s members, who are experts in technology and finance and have experience in designing solutions for global banks, can be of help.

Fourth, a programme about digital assets. The lack of digital asset recognition that follows the International Accounting Standards (IFRS) has legal consequences. Fraud and dispute cannot be resolved with the law. Meanwhile, blockchain technology can help set directions for digital assets and the use of IFRS.

Fifth, an enterprise chain programme. Blockchain in enterprises is safer than a public blockchain and can be used in metaverse, Web3, and even vaccine research.

Sixth, risk and information management in digital assets. Information security technology and policies need to go hand in hand to ensure digital asset security.

The Action Programmes are expected to be aligned with the National Programme KC- 4.0/19-25 until 2025, focusing on supporting the research, development and implementation of technology in Industry 4.0, with blockchain technology being the foremost priority. Yahoo! Finance

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