Web3 in Vietnam
Opportunities and challenges in the Vietnamese crypto boom
Axie Infinity is certainly familiar to you, but did you know that it was developed by a Vietnamese company called Sky Mavis?
Vietnam is now one of the world’s fastest-growing economies. Even though the global economy is in a downturn, Vietnam’s GDP is projected to grow by 7.5% this year. What’s more, Web3 and crypto are also booming in Vietnam. Statistics show that Vietnam has the highest crypto adoption rate in the world, with one in five people, or 20%, owning crypto.
To dive deep into Web3 in Vietnam, we invited a number of distinguished guests from Vietnam and those who have been working on the front lines. We covered the factors driving Web3 growth in Vietnam, crypto regulations in Vietnam, the opportunities and challenges there, and more.
Check out some excerpts from this Twitter Space below or you can listen to the full episode on Spotify.
What is driving crypto growth in Vietnam?
Dr. Dinh Ngoc Thanh, CTO, GFS Ventures
There are multiple reasons leading to the result we see today with crypto ownership in Vietnam. Firstly, Vietnam has a young population. Over 70% of them are under 35, and 75% of them have internet access and mobile phones. Most of them are sensitive to technology as many of them are Gen Z. Secondly, IT is one of the most significant industries contributing to Vietnam’s GDP. Over 1 million people work in this sector, with around 80,000 graduates every year.
Many people already know that globally Vietnam ranks in the top five in software outsourcing, in the top six in developer skills, and in the top 13 as a digital nation. Thirdly, the government is open and has no banning policy. Upon the request of the Vietnamese Prime Minister, blockchain technology is highlighted as one of the five most critical technologies in industry 4.0. Last but not least, Vietnamese use social networks frequently, so you can see that they are quite adept at creating the social network effect.
Why is the Vietnamese government so crypto-friendly?
Dr. Dinh Ngoc Thanh, CTO, GFS Ventures
There is currently no regulation of crypto in Vietnam. Everything is still under investigation and study, and we are also looking at how other countries do with crypto. Recently, the Ministry of Finance established a study group on crypto assets to consider the legal framework for the supervision of crypto issuances and trading activities, but no decision has been made yet.
While the Vietnamese tax authority has shown an interest in taxing income from trading cryptocurrency, no decisions related to the crypto tax have been made yet. Technology-wise, blockchain is mentioned as one of the top five prioritized technologies at the national level for industry 4.0 and blockchain is currently being used by several government organizations — and many top IT companies in Vietnam now have blockchain teams.
We see the potential of blockchain and Web3 to change many aspects of society and the economy, and we also consider that blockchain technology has both positives and negatives. So, we study things carefully and do not have a lot of restrictions on crypto.
What are the advantages and opportunities you see in Vietnam as an entrepreneur/investor?
Peter, Marketing Lead, Gable
Many people don’t yet know about the high quality of builders and developers from Vietnam. Thanks to Axie Infinity, Vietnamese builders were inspired to build their own unicorns. They are trying to contribute to the strong development of Web3 gaming.
The second advantage Vietnam has is its community. The Vietnamese community is very active in cryptocurrency trading, and they are quick to adopt and follow crypto trends closely. So, Vietnam is a true potential market with a large user base that many Web3 projects will want to reach.
Tung Chu, Co-founder, Yogain Appchain
When people are adapting to new technology, they also demand technology that will benefit them in other ways, like payments, shopping, or TV shows. After COVID-19, the fitness culture in Vietnam shifted a lot, as people work from home more and seek fitness at home. We can take advantage of this by implementing crypto in applications not just for finance, but also for other sectors.
Dr. Hung Dang, Head of Research, Octan Network
Entrepreneurship is not only about technology. It also has to take into consideration the social and economic situation at that particular place. In some areas of Vietnam, like Ho Chi Minh City or the metropolitan area of Vietnam, the social and economic situation of young generations has improved significantly over the past five to ten years. People don’t have to worry about bread and butter. They have more freedom regarding the financial aspect of their life compared to 15 or 20 years ago. Consequently, they can do some innovation, be creative, and embark on something that will pay off in the long run.
The worldwide supply chain move from China to Vietnam is a good factor that contributes to the overall economic and social status. And it’s also attracting a lot of foreign investment and attention to this country. So, I think Web3, specifically, and tech startups, in general, benefit significantly from the shift of whatever it might be — supply chains or factories or manufacturing — from China to Vietnam. They are all aspects of the economy in general.
Dr. Dinh Ngoc Thanh, CTO, GFS Ventures
In Vietnam, labor costs are quite low, so we can compete with other projects around the world by capital, requiring less investment in human resources. Additionally, we have a population of around 97 million people, so this is a huge opportunity for any capital to enter Vietnam.
Hannah Nguyen, Head of Partnerships, HorizonLand
Our labor force is highly skilled and motivated, so we can adapt quickly to changes. We also feel safe and confident conducting business in a fast-growing economy and open political environment.
What are the characteristics of Vietnamese entrepreneurs that stand out from those in other countries?
Joe Huynh, Business Development Manager, Octopus Network
We are a bit behind in many industries. But when it comes to crypto and NFTs, Vietnamese entrepreneurs are all qualified and basically on the same level as other developed countries.
Tracy, Developer Training Lead, Octopus Network
Vietnamese projects are well-developed. They include a lot of new things in their pitch decks, and they really have products that you can try, instead of just giving you a vague idea. The entrepreneurs are hard-working and put a lot of effort into what they’re doing.
What are the challenges for Web3 entrepreneurs in Vietnam?
Dr. Dinh Ngoc Thanh, CTO, GFS Ventures
Currently, most of the crypto startups still have to register their companies in other more open countries, like Singapore, Hong Kong, or Dubai. Another challenge is that most Web3 developers just switched over from Web2, so they need more time to gain experience to build a more long-term project.
Substrate Developer Courses in Vietnam sponsored by Octopus Network
Due to the rapid Web3 development in Vietnam, there is a high demand for blockchain developers. The Octopus Network launched Substrate Developer Training courses in Vietnam in 2021 and after three successful courses and is now preparing to open its fourth Substrate Training Course.
The Octopus Network Global Substrate Developer Training Program aims to cultivate more Substrate developers and spread the Substrate tech stack around the globe.
Our first Substrate Developer Training courses were launched in China several years ago and are now operated by Parity. We are expanding our courses globally by collaborating with local partners with courses held in Vietnam, Malaysia, India, Nigeria, Mexico, and more to come!
Why join Substrate Developer Training?
- Learn Substrate: Gain a basic knowledge of Substrate through the 6–8 week course.
- Community: Join other enthusiastic blockchain developers to create projects.
- Grants: Each batch of courses culminates in a Mini-Hackathon, awarding the top students $OCT based on their ranking (usually totaling $4,000 worth of $OCT).
- Job potential: Technical support, Developer, Marketing, Ambassador, and more.
Applications for the Substrate Training Program are always open.
If you would like to see our Substrate Training Courses in your country or region, please reach out to the Octopus Network Substrate Developer Lead — tracy@oct.network.
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