Vietnam establishing new blockchain friendly regulations

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Ho Chi Minh City in Vietnam aims to establish a regulatory framework and policies tackling blockchain in an effort for the development of smart cities. The announcement occurred at the annual conference held on Nov. 8, 2019, in Ho Chi Minh City.  People’s Committee Vice Chairman Trần Vĩnh Tuyến declared that science and technology projects that can help solve difficulties of the city and smart urban development would be prioritized, particularly projects using artificial intelligence (AI). 

Vietnam can potentially become one of the blockchain hubs in the Southeast Asian region, which can, in return, attract foreign investments, according to Forbes magazine.

The Saigon Hi-Tech Park (SHTP) management board and the HD KING Technology World Co. Ltd. inked a Memorandum of Understanding that helps promote the use of blockchain and AI technology to support smart city developments in Ho Chi Minh. Le Bich Loan of the SHTP management board said that online payments became more efficient and transparent through the blockchain technology. The Ho Chi Minh Department of Information and Communications Deputy Director Võ Thị Trung Trinh meanwhile advanced the idea that public services and urban management can utilize blockchain can. 

The SHTP incubator center, along with CBA Ventures of South Korea, signed a Memorandum of Understanding that promotes the use of blockchain in technology transfer. The groups will join forces to provide human resource training with regards to the new technology. The Ministry of Science and Technology will also give priority to startup companies and businesses focusing on blockchain, through the “Support Innovative Startup Ecosystem in Vietnam until 2025” National Program or ISEV.

The ISEV aims to create an environment for the foundation and development of new and high growth potential ventures grounded on Intellectual Property (IP). ISEV is creating and advancing the legal framework that supports startups, the establishing of a national Startup portal, and an effort to support 2,000 startup projects. Of the said projects, 600 will be fully developed, and 100 will be given follow-on investments or acquired by large-scale corporations.

The ISEV in 2018 constituted funding for the mandated institutions that are expected to implement the research and establishment of legal frameworks for the startups, human resource training of those involved, and communication with the stakeholders in the startup ecosystem. The Prime Minister ratified ISEV on May 18, 2016, and mandated the Ministry of Science and Technology (MOST) to lead its execution.

Earlier this year, startup company KardiaChain Foundation Ltd. constructed a multi-connection blockchain system that enables information sharing and interaction between ministries and businesses globally. The blockchain system warrants users to exchange directly with service suppliers all over the world. This system can be used as a tool to build smart cities and to administer most importantly education, healthcare, financial transactions, and the like. The startup will also present a unified platform for decentralized applications, which includes taxi services and hotels and e-commerce.

Another bitcoin-related cooperation agreement was inked in April when the FPT Corporation and SBI Holdings based in Tokyo, allows the 3 million USD investment to Vietnam-based startup Utop. Utop, built on FPT’s platform akaChain, is expected to extend loyalty point and reward initiatives of small businesses that safeguard data and lessens costs.