The global business community has long recognized the vast economic potential of Vietnam. In terms of globalization of goods and services, Vietnam’s business reach now influences almost every area of world trade.
However Vietnam still trails China in terms of economic growth. In terms of population, only 31% of adults in Vietnam have bank accounts. Just as smart phone ownership was crucial for increasing business activity in China, Vietnam can accelerate its own growth through the adoption of blockchain technology in its own industries. Likewise, fostering blockchain start-up companies can help maneuver the Vietnamese economy on an accelerated path.
The Sleeping Dragon:
In 2017, Vietnam’s trade as a percentage of GDP reached over 200%. The World Bank notes that this is the highest level for any country with over 50 million people. However, Vietnam still faces a large sector of its population living in poverty and making their living through agriculture.
Despite the large attendance of more than 2,000 people attending the Blockchain Week conference in Ho Chi Minh City last year, the desire for start-ups to choose Vietnam for their headquarters is waning when compared to other global business locations.
Vietnam’s Economic History:
Vietnam was able to emerge from being a war torn country to becoming a rising star in global emerging markets. Such accomplishments were a result of economic and social reforms that deregulated businesses while focusing on public investments. Vietnam now is a center for manufacturing and global trade on an unprecedented scale that continues to rise. University partnerships also foster and support Vietnamese economic growth.
Hurdles to Overcome in Vietnam:
Despite its praise of Vietnam’s economic development, the large adoption of blockchain technology in various industries and in agriculture needs to increase at a faster scale in order to supercharge the Vietnamese economy.
Additionally, Vietnamese blockchain startups have the potential to build applications beyond just cryptocurrencies that can position the nation as a leader in Asia for blockchain development.
Can the West Participate in Vietnam:
U.S. based companies merged with Chinese corporations over the last 10 years on a massive scale. This led to Chinese companies arriving on the U.S. stock market in record droves. Likewise, Vietnamese start-ups are gaining the attention of U.S. investors for similar future business development.
Currently, global experts consider Infinity Blockchain Labs in Ho Chi Minh City as the powerhouse leader in Vietnamese blockchain development. As a research and development company that focuses on the use of blockchain technology, it fosters growing the national blockchain industry.
The startup culture in Vietnam is now gaining the attention of investors in London and Silicon Valley. The Vietnamese government is increasing its support of local startups and initiated a plan to provide resources and training to tech companies during the next several years. Vietnam has a large population as a future market for customers and future blockchain platform users.
Startups are hopeful that future conference events in Vietnam will result in the West reaching out. There is a high potential to attract Western business leaders that can join with the rising Vietnamese blockchain start-ups. The result would be new innovative blockchain technology that grows the Vietnamese economy.