Vietnam to actively apply blockchain technology in various fields

Understanding the effectiveness of blockchain technology in different aspects of life, the Government has issued Decision No.100/QD-TTg/2019 about traceability, including the use of blockchain technology, and Decision No.2117/QD-TTg/2020 about applied technologies in the field of digital technology in order to boost the development of the blockchain market in Vietnam.

Vietnam to actively apply blockchain technology in various fields ảnh 1

Utop – an app for online shopping using blockchain technology by FPT Group. (Photo: SGGP)

CEO of Vietnam Blockchain JSC. Do Van Long commented that owing to negative incidents of digital currency, many people tend to think that blockchain is merely digital currency, which is extremely mistaken. In fact, this advanced technology can be used to create digital property or to upgrade existing information management systems to gain a higher level of security and transparency.

Technology Director of FPT Group Vu Anh Tu also stated that besides the popular use of blockchain in digital currency, it can effectively boost innovative technological startups thanks to its wide applications.

Statistics from Vietnam Blockchain Association reveal that among 200-top successful blockchain enterprise in the world, 7 were founded by Vietnamese people. Vietnam is one of five leading countries in this technology. At present, about 10 Vietnamese innovative startups in the blockchain field have the capitalization of over US$100 million, most of which are related to digital currency.

In Vietnam, Military Commercial Joint Stock Bank (MB) is the first to employ blockchain technology in Letter of Credit (L/C service). It allows the full documentation process of L/C from document issuance to presentation, which is expected to better protect clients against frauds in international transactions.

Viettel is using blockchain technology in forming e-medical records, while FPT is employing it in its solution of akaChain – helping businesses to reduce the time and cost in such operations as client identification, credit scoring.

Director Tu shared that there are other useful implementations of blockchain technology such as production chain or insurance – healthcare management, e-identification. In the entertainment field, many celebrities have released their own Non-Fungible Token Collections (NFT).

Deputy Director in charge of the Southern Department Nguyen Manh Cuong (under the Ministry of Science & Technology) commented that since blockchain technology is mostly used in the financial field, people seem to forget its other potential applications like tracing the origin of agricultural products, logistics.

The Ministry of Science and Technology has introduced guidance to support the growth of this promising technology in socio-economic fields, with the pilot from businesses that have feasible blockchain implementations for social benefits right in 2022.