Barriers in blockchain application in Vietnam

The blockchain community in Vietnam has grown strongly in the past five years. However, its application is still limited, according to Nguyen Manh Cuong, Deputy Director of the Ministry of Science and Technology’s Agency in the Southern Region.

Currently, blockchain is mainly applied in the financial sector, especially digital assets and digital currencies. He noted that businesses should not focus too much on one area (finance) but ignore other potential applications such as traceability in agriculture or logistics.

The Ministry of Science and Technology has supported the development of blockchain technology applications in socio-economic fields, in which pilot priority is given to businesses deploying feasible blockchain projects, bringing benefits to society.

New science and technology research and application activities would create impetus for the development of the digital economy, contributing to the rapid economic recovery and creating outstanding growth momentum in the coming years, said Cuong.

In the face of the explosive wave of global technology and the ability to grasp new trends, many blockchain applications in enterprises have been deployed.

MB Bank and Vietcombank announced a blockchain application in financial transactions and supply chains. The agricultural sector was also piloting blockchain, he added.

However, apart from a few prominent Vietnamese crypto and blockchain projects such as Axie Infinity, Coin98, Kyber Network, TomoChain, and KardiaChain attracting foreign investment, most blockchain applications in the Vietnam market had not yet achieved outstanding success, said the deputy director.

Vu Anh Tuan, General Secretary of HCM City Computer Association, said that the problem of human resource development was always a major challenge, in addition to legal barriers that limit human resources in blockchain development in Vietnam.

Many experts also pointed out that technical infrastructure was a significant barrier when deploying blockchain applications in enterprises.

Businesses can choose available blockchain platforms to build effective business solutions according to their model without investing in initial technical infrastructure, which is expensive and challenging./.

VNA