Vietnam Blockchain Market Outlook to 2030

Vietnam Blockchain Market Overview

• The Vietnam Blockchain market is valued at USD 350 million, based on a five-year historical analysis. This market's growth is driven by the increasing digitalization across various industries, including finance, healthcare, and supply chain management. Government initiatives supporting blockchain adoption, particularly in fintech and e-government applications, have also spurred this growth. Additionally, the rise in cryptocurrency uses and integration of blockchain with Internet of Things (IoT) and Artificial Intelligence (AI) technologies have been contributing factors to the market's expansion.
• Vietnams blockchain ecosystem is concentrated in a few dominant cities, with Ho Chi Minh City leading due to its role as a fintech hub. The city is home to several blockchain startups and innovation hubs. Hanoi, the capital, is also a key player because of the government's strategic involvement in blockchain initiatives. The dominance of these cities stems from their strong technology infrastructure, business environment, and access to skilled IT professionals.
• In 2023, the Vietnamese government unveiled a comprehensive blockchain development roadmap, outlining its vision for integrating blockchain across multiple sectors by 2025. This roadmap, spearheaded by the Ministry of Information and Communications, focuses on enhancing blockchain research, fostering public-private partnerships, and creating a supportive regulatory environment. The government has allocated $100 million for blockchain research and development, with specific projects targeting the finance, healthcare, and logistics sectors. The roadmaps ambitious goals reflect Vietnams commitment to becoming a leader in blockchain innovation in the Asia-Pacific region.

Vietnam Blockchain Market Segmentation

By Type of Blockchain: The market is segmented by type into public blockchain, private blockchain, consortium blockchain, and hybrid blockchain. Public blockchain dominates the market, as it is widely used for cryptocurrency transactions and decentralized applications. This sub-segment has seen rapid adoption due to the open and transparent nature of public blockchain networks, which enable anyone to participate in the network. The presence of a growing community of developers and the increasing interest in decentralized finance (DeFi) have bolstered the dominance of public blockchains.

By Application: The market is also segmented by application into finance, healthcare, supply chain management, real estate, and government. The finance segment has the dominant market share, driven by the increasing adoption of blockchain in banking and financial services, especially for cross-border payments, digital asset exchanges, and smart contracts. The financial sector is leveraging blockchain to increase transparency, reduce transaction costs, and enhance the security of financial transactions, making it the leader in this segment.

Vietnam Blockchain Market Competitive Landscape

The Vietnam blockchain market is dominated by a mix of local and international players, highlighting a competitive environment that drives innovation and adoption. The market's competitive landscape is shaped by companies that focus on both the development of blockchain platforms and applications across multiple industries, from fintech to logistics.

Vietnam Blockchain Market Analysis

Growth Drivers

• Government Adoption of Blockchain: Vietnam's government has shown increasing interest in blockchain technologies, particularly in sectors like banking, public administration, and legal systems. In 2023, the Ministry of Information and Communications announced blockchain as one of the core technologies for Vietnam's digital transformation strategy, aiming to enhance transparency and reduce corruption. The government aims to digitalize 80% of public services by 2025, providing a fertile ground for blockchain integration. Additionally, Vietnam's regulatory sandbox initiative, launched in 2022, has facilitated blockchain startups, leading to 15 blockchain-focused pilot projects. These developments highlight the government's commitment to fostering blockchain adoption in the public sector.
• Rising Adoption in Supply Chain Management: Blockchain adoption in Vietnams supply chain management is gaining momentum, particularly in the agriculture, manufacturing, and logistics sectors. The Vietnam Logistics Association reported that over 40% of logistics companies are actively exploring blockchain solutions to enhance supply chain transparency, reduce delays, and track goods in real-time. In the agriculture sector, blockchain is being used to trace the origin of products, improving trust among consumers. By 2024, over 500 agricultural businesses are expected to adopt blockchain solutions, according to the Ministry of Agriculture, to ensure transparency and reduce counterfeit goods.
• Blockchain in Healthcare and Insurance Industries: Blockchain is revolutionizing Vietnam's healthcare and insurance sectors, primarily by improving data security and interoperability. As of 2023, 25 hospitals in Vietnam are using blockchain to securely manage patient records, ensuring data accuracy and privacy. Additionally, the Ministry of Health has endorsed blockchain solutions to streamline medical insurance claims, reducing fraud and administrative costs. In the insurance sector, blockchain-based smart contracts are being implemented to automate claims processing, with at least three major insurance companies adopting these solutions, covering over 1 million policies nationwide.

Market Challenges

• Lack of Technical Skills: Vietnams blockchain market also struggles with a shortage of skilled professionals. According to the Vietnam Software and IT Services Association, there are only 6,000 qualified blockchain developers, insufficient to meet the demand of over 20,000 blockchain-based projects. This skill gap is exacerbated by the fast-evolving nature of blockchain technology, which requires continual upskilling. As a result, companies are forced to outsource technical expertise or delay project implementation. Furthermore, educational institutions in Vietnam have been slow to incorporate blockchain into their curricula, further contributing to this challenge.
• Cybersecurity Risks: As blockchain adoption increases in Vietnam, so do cybersecurity risks, with over 200 reported cases of blockchain-related cyberattacks in 2023. These attacks often target decentralized platforms, exposing vulnerabilities in smart contracts and digital wallets. The Ministry of Public Security has issued warnings about the rising threat of cybercrime linked to blockchain technology, highlighting the need for enhanced security measures. Despite blockchains inherent security features, the decentralized nature of these systems makes them a prime target for hackers, particularly in the fintech and cryptocurrency sectors, where high-value transactions occur.

Vietnam Blockchain Future Outlook

Over the next five years, the Vietnam blockchain market is expected to experience significant growth, driven by ongoing government support, technological advancements, and increasing adoption across diverse industries. Blockchain applications in decentralized finance (DeFi), supply chain management, and healthcare are likely to expand further, as blockchain continues to address challenges like fraud, inefficiency, and lack of transparency. Additionally, Vietnam's strategic focus on becoming a regional technology hub will further accelerate the adoption of blockchain solutions.

Future Market Opportunities

• Expanding Cryptocurrency Adoption: Vietnam is witnessing a surge in cryptocurrency usage, driven by a young, tech-savvy population and the increasing popularity of digital assets. In 2023, Vietnam ranked among the top 10 countries globally for cryptocurrency adoption, with over 3 million active crypto users, according to the Ministry of Finance. The rise of decentralized exchanges and peer-to-peer platforms has enabled users to trade cryptocurrencies without intermediaries. Moreover, local banks are beginning to explore blockchain-based digital currencies to enhance cross-border payments, further expanding the scope of cryptocurrency usage in the financial system.
• Collaboration with International Blockchain Networks: Vietnam is increasingly collaborating with international blockchain networks, enabling local companies to access global blockchain resources and expertise. In 2023, Vietnam joined the Global Blockchain Consortium, a move aimed at fostering cross-border blockchain innovation. This collaboration provides Vietnamese blockchain startups with access to international funding, research, and technology, accelerating the development of blockchain applications. Moreover, the countrys participation in international blockchain forums has helped position Vietnam as a key player in the global blockchain ecosystem, creating opportunities for partnerships and joint ventures with international blockchain firms.