Making news

Creating a legal corridor for blockchain development in Vietnam

In the face of the explosive wave of global technology, with increasingly favourable policies and rising interest of businesses, the Vietnamese blockchain market is forecast to continue to develop positively.

The National Assembly’s Committee for Foreign Affairs in collaboration with the Vietnam Blockchain Association held a seminar on international experience in blockchain technology development and recommendations for Vietnam last week.

The conference aims to learn and enhance experience, standardise solutions for the development and application of blockchain technology, towards perfecting the legal system, and building institutions and policies to create a legal corridor for technology-related activities.

Phan Duc Trung, Permanent Vice President of the Vietnam Blockchain Association, said: "Blockchain technology is a kind of database, information is stored in blocks and linked together."

Blockchain could be likened to a ledger that records all data in the system. Blockchain differs from conventional data in the data storage structure.

Blockchain collects data information and groups them into blocks containing a lot of information. Blockchain is being applied in 65 fields such as banking, securities and funds, insurance, state management, and infrastructure.

In the opening speech, Vice Chairman of the NA committee Nguyen Manh Tien emphasised that blockchain technology was increasingly attracting the attention of socio-economic and political sectors around the world as this technology had revolutionised traditional commerce due to the ledger feature.

"Every record in this ledger is secured by cryptographic rules that keep the information safe and not able to be faked," he added.

The application of blockchain technology created many benefits in increasing the efficiency of work processes, storing data, managing the supply of goods, reducing errors in the document flow and duration, and reducing logistics time, said Tien.

The deputy chairman also noted that the blockchain "big playground" needed direction and guidance.

With the goal that Vietnam will not be "left behind" in the technological development of many countries, the Document of the 13th Party Congress for the first time emphasised digital transformation and digital economic development, which emphasises the need to "develop the digital economy on the basis of science and technology and innovation".

The document, at the same time, set requirements for growth innovation, economic restructuring, and making good use of opportunities of the Fourth Industrial Revolution, towards the goal "the digital economy will contribute about 20% of GDP by 2025, about 30% of GDP by 2030".

In order to carry out the above task, Tien said that in addition to the efforts of the Government and related agencies and organisations, it was necessary to have companionship and experience sharing from countries in the digitisation process as well as businesses in building and perfecting a system of legal documents related to this field, and monitor for the Government's implementation of the budget and international commitments, resolutions, documents and other legislation of the National Assembly on policies to develop the digital economy./.