There’s a buzz around Web3 in Vietnam for several reasons. These include its tech-savvy population, a thriving tech sector, government initiatives, and a widespread interest in blockchain and cryptocurrencies. As Web3 marks a new era for the internet, Vietnam stands at the forefront of this transformative wave – let’s explore why and how this makes it an ideal venue for any gathering aiming to push the world of Web3 forward.
Young and tech-savvy population
Vietnam boasts one of the most significant populations in Southeast Asia, trailing only Indonesia and the Philippines, with a populace nearing 100 million. Many in the tech sector view Vietnam as a leading developer nexus – as Vietnam currently has more than 400,000 skilled software engineers and about one million IT workers in the tech sector.
The nation’s software engineers rank at an impressive 8th place globally, and 95% of these skilled professionals have bachelor’s degrees or higher in IT. Every year, over 50,000 IT students with a firm grasp of programming languages graduate from IT institutes trained in mathematics, science, and language.
I’ve also noticed in my role for the NEAR Foundation that there is an inner drive to learn that sets Vietnamese developers apart. So many developers I have met independently commit to learning solidity while in university. There is an intrinsic motivation as the excitement about Web3 in the country is palpable.
A thriving tech sector
Besides this readily available tech talent, there is also the infrastructure supporting that talent. Over recent years, international investors have flooded into Vietnam and established funds specialising in blockchain – with capital inflows into non-fungible token (NFT) assets rising from 37 million USD to 4.8 billion USD in 2021.
There are competitive costs for companies wanting to set up offices or access Vietnamese talent. More companies are looking for countries where they can develop Web3 projects at a fraction of the cost it might take in other places. Vietnam boasts competitive salaries and operational costs, turning it into an attractive hub for Web3 projects.
As a result, Vietnam now has 3,800 blockchain-related projects, 200 venture capital funds, and 100 project incubation funds to support the country’s startups. Vietnam’s tech landscape is now full of numerous startups and innovation hubs fostering creativity in Web3. Local incubators and accelerators provide mentorship, resources, and networking opportunities for Web3 entrepreneurs.
Government initiatives favouring digitisation
Backing up the above is government support. A couple of years ago, Vietnamese Prime Minister Pham Minh Chinh signed the “Decision No.942/QD-TTg”, which gave the green light to the country’s “e-government” development strategy. The nod to enhance the legal structure around Web3 indicates the government’s increasing acknowledgement of these technologies’ significance and promise.
Following this, Vietnam also launched its first official blockchain association last year, which has been anticipated by many to be an important force in building a legal framework for Web3 technology. This national association comes with a legal entity whose duty is to represent blockchain researchers, business owners, and consultants.
Its chairman, Hoang Van Huay, has shared the Vietnam Blockchain Association’s commitment to “providing consultation on building legal framework, regulations, and standards in developing services and products on blockchain” – as part of a broader mission to accelerate the growth of blockchain technology in Vietnam.
Widespread interest in blockchain and cryptocurrencies
On top of all the above, or perhaps because of it – Vietnam ranks first in the Global Cryptocurrency Adoption Index released by Chainalysis. In the first year of such data being released, Vietnam found itself in 10th place, then jumped to the first position the year after and has retained its lead for two years.
This data shows that out of the five sub-indexes (which are centralised service value received, retail centralised service value received, P2P exchange trade volume, DeFi value received, and retail DeFi value received), the nation scored high in purchasing power and population-adjusted adoption across centralised, DeFi, and P2P cryptocurrency tools.
On the global stage, this helps to provide more detail into how Web3 is sweeping through our nation quicker than in other places. In 2020, Statista revealed that 21% of respondents who reported using and owning cryptocurrency were from Vietnam. This number is much higher than those of developed countries, which include China (7%), the US (6%), and Japan (4%).
Vietnam is at the heart of the Web3 boom for many reasons. But overall, it’s because sometimes, when a number of factors line up, positive momentum simply causes more positive momentum. In this case, the more energy there is around the Web3 space, the more interest it attracts, and the cycle is only set to continue.
Vietnam and APAC’s role in accelerating Web3 adoption and more will be covering during
NEAR APAC – the first official international Blockchain event in Vietnam organized by GFI, VBI, and NEAR Foundation. Taking place from September 8th- September 10th, 2023 at Thiso Skyhall – Thiso Mall in Ho Chi Minh, this event marks an important milestone recognizing Vietnam’s ability to compete with the leading countries in blockchain technology worldwide and approach not only the projects in the NEAR ecosystem but also multichain. NEAR APAC delivers a world-class lineup of speakers to share the latest APAC developments, unlimited potential of the blockchain industry, regional market insights, Web3 hacker festival, and insightful events for networking opportunities with local communities and partners. For more information and tickets visit here.
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