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With the use of blockchain technology has grown exponentially seemingly with each passing year, it stands to reason that this yet nascent market will continue to penetrate and find use cases across a host of technological sectors including healthcare, supply chain management, cross-border remittance, etc. in the near term.
In this regard, conservative estimates suggest that the global blockchain industry, which stood at a cumulative valuation of $5.92 billion in 2021, is set to grow at a compound annual growth rate (CAGR) of 85.9% between 2022 to 2030.
This is also the reason why a number of governments have been actively seeking out the use of this technology as it stands to help bolster their internal data processes by making them more frictionless.
To this point, the Vietnam Blockchain Association (VBA), a legal entity connecting members of the Vietnamese blockchain community with another, is bringing the country’s products to the world while attracting more international resources.
The association has entered into strategic cooperation with leading cryptocurrency exchange Binance so as to promote the use of this rapidly evolving technology all over the country and surrounding regions.
As per available data, Vietnam is one of Asia’s technological hotbeds boasting of one of the fastest-growing economies in the world. The country is an ideal bedrock for the deployment of various blockchain offerings, especially since local regulators and government officials have time and again shown a keen interest in the research and development (R&D) of this maturing domain.
In fact, the Vietnam Blockchain Association (VBA) and Binance have revealed that their cooperation comes in lieu of local authorities promising to promote the research/application of blockchain technology and human resource training across the nation.
This will be done primarily to bridge the technological gap that exists between the country’s current tech framework and the demands put forth by various corporations who have been looking to make inroads into the region for quite some time now.
Why the VBA and Binance partnership is a game changer
The creation of the Vietnam Blockchain Association (VBA) and its aforementioned partnership with Binance has created major ripples across the global tech landscape and rightly so.
This is because Binance is by far one of the most popular crypto/blockchain firms in the world, with the company recently closing a new $500 million investment fund with support from leading global institutional investors to aid in the development of various Web 3.0 and blockchain projects through the entirety of their life cycles.
To elaborate, this specific strategic partnership will allow Vietnam to maximize its growth prospects, especially since the country’s economy was ravaged by the Covid-19 pandemic recently, resulting in its GDP (gross domestic product) slipping quite sharply over the last couple of years.
Also, it is worth noting that in recent years a growing number of countries have started to adopt digital assets and their associated technologies rapidly. This is because most regulators and governments have begun understanding the immense social, technological and financial potential of these assets.
To this point, the crypto/blockchain industry as a whole is primed to grow to a valuation of $32.4 trillion by 2027, expanding at a CAGR of 58.4%.
A major chunk of this money has the potential to make its way into developing economies such as Vietnam since the nation has time and again shown a keen eye for blockchain and crypto tech.
Coupled with the fact that Binance is currently licensed to operate in Italy, France, Dubai, Abu Dhabi and Bahrain, there is no saying how lucrative this partnership can be for Vietnam’s tech sector potentially ushering in a new era of innovation whereby the region’s local tech talent can find well-paying avenues without moving abroad.
A radical transformation is in the offing
According to Ngo Duc Thang, director of Vietnam’s Cipher Committee, the use of various blockchain-enabled services stand to spur the ‘fourth industrial revolution’ within Vietnam, adding that the partnership between the VBA and Binance will not only help in the growth of the global crypto sector but also generate a lot of local employment.
Thang noted,
“In the coming time, the government will continue to facilitate, encourage and promote early businesses to proactively accelerate the digital transformation process in which blockchain technology is the mainstay.”
From a purely macroeconomic perspective, it is estimated that the blockchain/crypto industry will generate a whopping 40 million jobs by the end of the decade. Many of these opportunities stand to make their way into the Asian market, allowing many talented/skilled individuals across Vietnam to reap long-term financial security/stability in the process.
Promoting blockchain application
Recently, Tran Van Tung, Vietnam’s deputy minister for science and technology, stated that over the coming years he expects his nation to lead the roost when it comes to the development of blockchain technology, adding,
“Hopefully, the Association (VBA) will utilize its resources for technology and science projects in blockchain so Vietnam can create outstanding products, become an active player in the global blockchain market and nurture the industry talents for the future.”
In this regard, a large number of Vietnamese institutions are currently in the process of researching and applying blockchain across various sectors such as banking services, industrial production, energy, agriculture, healthcare, retail, etc.
Thus, as the crypto/blockchain industry continues to mature rapidly, the Vietnam Blockchain Association’s (VBA) partnership with Binance stands to transform the country into a tech superpower by luring investments from all over the globe. Therefore, it will be interesting to see how the future pans out from here on end.
Huy Nguyen is the co-founder and CEO of KardiaChain.
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