The Web 3 wave sweeps Southeast Asia Why Vietnam has become a “hotspot”

With the end of Hong Kong Fintech Week and Singapore FinTech Week, related topics in the field of Web 3 have also been completely detonated, and from the attitude of Hong Kong and the local government of Singapore, Southeast Asia has become a paradise for Web 3 practitioners.

Singapore’s policy on Web 3 has long been clear regulations and support, Hong Kong’s release in FinTech Week, let people already know Hong Kong’s clear attitude towards Web 3, so are there other countries in Southeast Asia that support Web 3? In this issue, Golden Finance interviewed Henry Li, President of HKBA Vietnam, Asian Metaverse Alliance, to take you to see Vietnam’s policies and attitudes towards Web 3.

Does Vietnam also have specific favorable policies in terms of Web 3 and Metaverse?

In response to this problem, Chairman Henry Li said: As early as June 15 this year, Vietnam launched the Metaverse Village in Da Nang, and Mr. Pham Hong Thuan, Director of the Vietnam Market Development and Technology Enterprise Bureau (Ministry of Science and Technology), also made a clear statement on the Metaverse.

Other creators in the world in numerous startup hubs such as Singapore, Seoul (South Korea), Silicon Valley (USA) are already familiar with the Metaverse. However, this term appears for the first time on the map of Vietnam’s international innovation and entrepreneurship ecosystem, it is a technology trend, a very new business model, a new business model for the future. ”

At present, the Metaverse Village will hold many large-scale events in 2022, such as: bringing 800 enterprises into the Metaverse; Organize the Metaverse innovation and entrepreneurship competition, participate in the Korean Metaverse global forum, the monthly seminar of the Metaverse, and the Metaverse smart city model; Coordinate and organize local Techfest events with all parts of Vietnam.

In addition to this, the village will set up a scholarship fund to fund research projects on the Metaverse, blockchain and digital economy.

The above is the Vietnamese government’s clear attitude towards the Metaverse and Web 3. In addition to attitudes, Vietnam also has many favorable measures in terms of policies. For example, since 2020, Vietnam’s Ministry of Finance has established a research group on virtual assets and virtual currencies.

In 2020, the Prime Minister of Vietnam signed Decision No. 2117/QD-TTg, promulgating a series of priority research, development and application technologies to actively participate in 4.0, including blockchain technology.

In 2021, in Decision No. 942/QD-TTg approving the e-government development strategy for digital government, the Prime Minister of Vietnam designated the State Bank to host the research, development and pilot of virtual currencies based on blockchain technology from 2021 to 2023. There are also strong support policies for innovative startups, especially new technologies such as artificial intelligence, blockchain, VR/AR/XR…

This year, on March 31, 2022, the Prime Minister of Viet Nam also issued Decision No. 411/QD-TTg, approving the National Strategy for the Development of Digital Economy and Digital Society with the goal of 2030, promoting the construction of a strong economy through technology.

The Ministry of Science and Technology Decision No. 2813/QD-BKHCN approved the National Key Science and Technology Plan until 2025, and blockchain ranked second after artificial intelligence (AI). The National Priority Plan to 2025 is also underway, with blockchain being one of the key technologies prioritized.

What is Vietnam’s attitude towards virtual currencies?

“Virtual currencies, including cryptocurrencies, are not currently recognized in Vietnam, but in fact, such currency transactions are common and Prime Minister Pham Minh Trinh (Vietnam) believes it is necessary to provide for them in the law,” said Henry Li.

During a panel discussion on the afternoon of October 24, Vietnamese Prime Minister Pham Minh Trinh, while discussing the draft Law on the Prevention of Money Laundering (Amendment), said that during the government discussion, there were two opinions related to regulating virtual currency transactions and anti-money laundering through such currencies. First, Vietnam has not recognized virtual currency, so the government did not include this currency in the bill when it submitted it to the National Assembly; Second, the use of virtual currency in reality is very common, and there should be control measures.

Therefore, the Prime Minister of Vietnam, Mr. Pham Minh Trinh, clearly said: “I am also in a hurry about this matter, we have not admitted it yet, but in fact people are still trading.”

What are Vietnam’s specific advantages in Web 3?

In terms of Vietnam’s specific advantages, Chairman Henry Li believes that in a short period of time, Vietnamese Web 3 startups have attracted the attention of international investment funds, which is actually illustrative, and the reasons are also divided into several aspects, such as low labor costs, high policy inclusiveness, etc., which have attracted a large number of industry companies to enter Vietnam and develop locally.

In early September, for example, the BNB Chain Web3 Accelerator in Vietnam, organized by Binance, brought together 150 entries. By mid-September, NEAR (Switzerland) had also established a Web3 center in Vietnam. Recently, at the event on October 18, the Polkadot project representative also emphasized that Vietnam is one of the hot spots for Web3 development in the world.

While Web3 is still a new technology worldwide, Vietnam is catching up with this trend with good momentum. Many Web3 application startups have been born, such as startups that offer Jupviec, the Orochi Network blockchain ecosystem, or Spinel Labs, which provides financing solutions. In particular, the Internet game Axie Infinity, the Web3 platform was valued at more than $300 million at one point.

Another factor that Vietnam is currently one of the “hot spots” of global Web3 is that the recent inflow of money into startups has been very positive. Recently, Web3 gaming startup Ancient8 closed 2 rounds of funding totaling $10 million. That’s a very impressive number for any tech startup.

In Vietnam, according to a report by MarketsandMarkets, the value of Vietnam’s blockchain-related market is expected to reach nearly $2.5 billion by 2026, a five-fold increase from 2021.

Among the top 200 companies in the world that do business with blockchain technology, 7 were founded by Vietnamese. Vietnam is also one of the 5 major countries in the blockchain space. There are more than 10 Vietnamese startups in the blockchain space with a market capitalization of more than $100 million; Leading startups have also emerged in this space.

For example, Kyber Network technology raised $52 million from more than 21,000 large and small investors in more than 100 countries at its fundraiser. At the end of 2021, VerseHub, founded by Vietnamese, received up to $1 million in investment from GameFi to implement projects related to the virtual universe. Ancient8, a brilliant Web3 startup, has raised two rounds of funding with a total investment of $10 million. There are other prominent faces, such as Orochi Network (infrastructure), Spinel Labs (DAO infrastructure).

The government promotes digital transformation and supports tech start-ups, especially blockchain, introducing many blockchain organizations and associations, supported by ministries, departments, and branches. Vietnam is a great environment for investors because it is not strictly banned, and these combine to make Vietnam a “hotspot” for Web 3.

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