September 19, 2022 | 19:41 GMT+7

Vietnam’s digital economy poised to develop substantially

Tra My -

Country holds a great deal of potential in the digital economy, especially blockchain, Binance Blockchain Week Paris 2022 hears.

Vietnam has the opportunity to quickly grasp new technologies and create new capital flows for its economy, analysts told a panel discussion at the Binance Blockchain Week Paris 2022 on September 16.

“Vietnam’s digital economy reached $21 billion in 2021, up 31 per cent over 2020 and contributing more than 5 per cent to the country’s GDP,” Ms. Lynn Hoang, Head of Binance Southeast Asia, told the gathering, citing reports on Vietnam’s digital economy. “It is expected to reach $57 billion by 2025, ranking it second in Southeast Asia, with an annual growth rate of about 29 per cent.”

In terms of venture capital, Vietnam also attracted a record $1.4 billion in 2021, compared to $451 million in 2020. Deal numbers also rose significantly, by 57 per cent to 165 in 2021 compared to 2020. The country also welcomed the birth of two unicorns last year: Sky Mavis, with a valuation of nearly $3 billion, and MoMo, with more than $2 billion.

Ms. Lynn Hoang added that Vietnam not only makes high-quality products but also leads many new global trends in the fields of GameFi and DeFi. However, in order for new technologies like Blockchain to continue to contribute more to the economy and the country, appropriate policies are needed.

Vietnam possesses many advantages in terms of human resources, infrastructure, and an innovative spirit, said Mr. Jerome Modolo, CEO of FPT Software France. Blockchain brings a lot of value to the economy and society, but is still quite new and more people need to become familiar with it. With its existing potential, Vietnam could well become the new digital economy of the Asia-Pacific region.