Mapping Crypto Adoption - Vietnam’s Strategic Position for User Growth
The Gateway Market for International Projects in Southeast Asia
The story of Vietnam's journey into blockchain and cryptocurrencies is one of adaptation, innovation, and growing enthusiasm for digital assets.
In this in-depth exploration, we will take a comprehensive look at Vietnam's evolving crypto landscape, analyzing market trends, regulatory dynamics, and why this country is increasingly a top pick for ambitious project growth.
Vietnam's Crypto Adoption
Vietnam is ranked #1 in crypto adoption among developing economies, according to the Chainalysis 2023 Global Crypto Adoption Index. This interest in cryptocurrencies is driven by several factors. With a young and tech-savvy population, the country has experienced a surge in interest in digital assets and blockchain technology. Recent studies estimate that more than 20 million Vietnamese actively participate in the crypto space, underscoring a robust appetite for investment and innovation. This has led to 150% year-on-year growth in blockchain transactions, signaling a robust and expanding crypto ecosystem.
Surging Startup Ecosystem
Vietnam's vibrant startup ecosystem has become a hotbed for blockchain innovation. From decentralized finance (DeFi) platforms like Kyber Network to a number of successful GameFi projects like Axie Infinity, startups in Vietnam are using blockchain technology to tackle a variety of challenges across industries.
Notable layer-1s like Unicorn Ultra and Viction (formerly TomoChain) have captured attention both locally and internationally, showcasing Vietnam's potential as a hub for blockchain innovation in the region. Significant initiatives to support entrepreneurship and innovation further bolster the ecosystem, providing startups with the necessary resources and support to thrive.
Vietnamese Crypto Trading Trends
The trading volume of cryptocurrencies in Vietnam has experienced significant growth, reflecting increasing interest and participation in the crypto market. Local exchanges report surging trading volumes, driven by active engagement from Vietnamese investors and traders.
According to a Wall Street Journal article in May 2023, Vietnamese investors’ trading volume on Binance reached US$20 billion, of which futures trading accounted for about 90%. It ranked fourth among many countries in terms of volume-to-volume ratio. Other exchanges active in the market include Bybit, CoinW, HTX, MEXC, OKX, ProBit and Remitano.
This escalating market activity underscores the growing importance of cryptocurrencies in Vietnam's financial landscape, presenting lucrative opportunities for international projects to capitalize on. New investment products and trading platforms have helped democratized access to digital assets, allowing a broader segment of the population to participate in the crypto market.
Education and Awareness
Efforts to educate even more people in Vietnam about cryptocurrencies and blockchain technology are gaining momentum. The country has witnessed a series of impactful events and initiatives, such as seminars, workshops, and educational campaigns, which play an integral role in raising awareness and cultivating a deeper understanding of digital assets among the populace.
One notable event in the conference landscape is ETH Vietnam, held recently in March 2024. This event, which hosted Vitalik Buterin as keynote speaker, serves as Vietnam's Web3 hub, attracting Ethereum and blockchain enthusiasts, designers, and developers. It included a hackathon that clearly demonstrated the technical skill and entrepreneurial passion that Vietnam has to offer.
In June 2024, the GM Vietnam event emerged as a leading blockchain event aimed at fostering innovation, knowledge sharing, and networking opportunities within the Web3 community. Co-hosted by Kyros Ventures, Ninety Eight, and Ancient8, GM Vietnam offers an immersive agenda, top-notch speakers, and a vibrant atmosphere, making it the highlight event of the year in the blockchain industry.
Further enhancing the educational landscape is the Vietnam Blockchain Summit, scheduled for July 2024. This week-long event features various independently organized side events that add to VBS's presence, creating a week of non-stop learning and networking. Attendees can expect a wide range of meetups, workshops, hackathons, dinners, and parties in exceptional venues across Vietnam, further solidifying the country's position as a hub for blockchain education and innovation.
Remittances in Vietnam
Remittances are a key part of Vietnam's economy, and cryptocurrencies offer a promising avenue to streamline cross-border transfers. In 2023, the World Bank estimated that Vietnam received approximately 14 billion USD in remittances, while this figure reached a record number of 19 billion USD in 2022
Platforms like Remitano, FinFan and Coins.ph let Vietnamese expatriates remit funds home using cryptocurrencies, bypassing traditional banking channels and reducing costs. The exploration of crypto-enabled remittance solutions underscores Vietnam's forward-thinking approach to using digital assets for economic empowerment. Crypto is also playing a part in helping to increase financial inclusion in Vietnam. Despite some 70 percent of the adult population now owning a bank account, various studies have shown many still classify as underbanked, with more than half lacking access to credit.
Crypto Regulation & Tax
Vietnam's regulatory landscape for cryptocurrencies has undergone an evolution, with ongoing discussions and deliberations aimed at crafting a balanced framework that promotes innovation while safeguarding investor interests.
Cryptocurrencies are not legal tender but Vietnamese citizens are allowed to possess and trade crypto. There is no crypto taxation, which is likely to be one key reason why Vietnam crypto adoption is so strong.
The Government has tasked the Ministry of Finance to research and develop a legal framework to regulate crypto assets by May 2025, with an aim to combat money laundering.
Clarity and transparency in regulations are essential for attracting investment and nurturing innovation in the crypto sector, and recent developments suggest a favorable outlook for Vietnam's regulatory approach.
Regional Growth Opportunities
Vietnam is an important hub in the Southeast Asian crypto ecosystem, with excellent opportunities for international projects seeking to expand their marketing reach and drive growth in the region.
The Blockwarp team chose to invest and build in Vietnam for all the reasons mentioned above. It’s also a great place to live and work! Now we are delighted to support international projects from all over the world with our Vietnamese market entry services.
Tapping into Vietnam's vibrant ecosystem allows crypto projects to unlock a wealth of opportunities for marketing expansion and growth in the region.