Digital Biz

Under a breakthrough scenario, Vietnam’s digital economy in 2025 could account for 26.2 per cent of GDP, far exceeding the target of 20 per cent. Three solutions for a breakthrough in the digital economy include introducing national strategies and programs, completing the legal framework, mechanisms, and policies, and accelerating the implementation of the national digital transformation program.

Blockchain is one of the digital technology fields that the government is prioritizing in research, development, and application. There are about ten startups in the blockchain field, with capitalization of over $100 million, with the most prominent being technology “unicorn” the Kyber Network. Mr. Luu The Loi, CEO of Kyber Network, has received $52 million in a fundraising campaign from over 21,000 investors in more than 100 countries and territories. Many experts agree that Vietnam is one of the most dynamic technology centers in the world.

Vietnam saw a record increase in capital invested into startups in 2021, totaling more than $1.3 billion, with similar levels expected this year. Most deals, however, are funded by foreign investors. Another issue of note is the low number of projects being funded, at about 100 deals each year, while Vietnam has approximately 3,800 startups and 200 investment funds.

Though Vietnam’s game industry is considered to have major potential and is already one of the spearheads of the digital economy, analysts have said that the existing legal framework for the industry is behind development reality, especially given new technology trends.

Blockchain games are helping Vietnam’s online game market assert its reputation in the world. Following the legendary Axie Infinity - the most successful blockchain game of all time - a series of other blockchain games released by Vietnamese creators have achieved great success. The country leads Southeast Asia in Non-Fungible Token (NFT) game production and publishing.

Though blockchain is still relatively new in Vietnam, the country has emerged as something of a phenomenon in the technology as well as Non-Fungible Tokens (NFTs). Many blockchain projects and products founded and implemented by Vietnamese have become global sensations. Blockchain is indeed creating an exciting wave of startups and innovation in the country.