The rise of Vietnam’s economy has been a long time coming. For 15 years between 2000 and 2015, Vietnam recorded an average annual Gross Domestic Product (GDP) growth of 6.9%. In 2018, the country went on to log an astonishing 7.1% GDP growth in 2018, beating an IMF forecast of 6.8%.
At the end of the Sino-US trade war, the expansion of protectionist measures put in place by the two global economic powerhouses may eventually benefit Vietnam, as manufacturers looking for diversifying their supply chains among geopolitical tumult start turning to Southeast Asia as a port of safe harbor. For investors, who are considering to enter Vietnam, they will be glad to know that the government had in October, last year announced that it is planning to remove foreign ownership restrictions for state-owned enterprises and listed companies by the end of this year. But the so-called Ascending Dragon may offer much more for emerging tech industries.
Blockchain as a Tool for Economic Development of Vietnam
Regarding human resources, Vietnam, with a wide talent pool of digitally skilled workers, is in pole position to capitalize on the use of blockchain to propel its economy forward.
This advantage is not lost on the government, which is already collaborating with Japan’s leading universities, institutes, and information technologies (IT) enterprises to train local IT workers, to conduct Research and Development (R&D) programs in the areas of blockchain, cloud computing, and cybersecurity. In addition, the development of the blockchain talent pool in Vietnam is supported by private learning institutions, such as Blockchain Education Network (BEN) and CoderSchool.
Blockchain for e-Commerce in Vietnam
It has been reported that “e-CONOMY SEA 2018” published by Google in collaboration with Singapore company Temasek Holdings Pvt. Ltd was noted that Vietnam’s e-commerce market was worth US$9 billion with a Compound Annual Growth Rate (CAGR) of 38% from 2015 to 2018. This effectively places Vietnam’s e-commerce market as the leader in Southeast Asia (SEA) in terms of GDP growth. The Gross Merchandise Value (GMV) of Vietnam’s e-commerce market amounted to 4% of the country’s GDP which is the highest among SEA countries.