Vietnam : reform and collaboration for a safer digital asset ecosystem
Vietnam is rapidly emerging as one of the world’s leading adopters of digital assets, with millions of citizens embracing cryptocurrencies and blockchain technology.
This remarkable growth has sparked urgent calls from experts and policymakers to establish a comprehensive legal framework to regulate the digital asset market and protect investors. At the same time, Vietnam is actively seeking to learn from international expertise, particularly from South Korea, to build a secure, innovative and sustainable ecosystem.
The country has witnessed significant capital inflows exceeding US$105 billion between 2023 and 2024, accompanied by estimated profits of US$1.2 billion from blockchain-related projects. Over 17 million Vietnamese citizens now own digital assets, nearly 17% of the population, far exceeding the global average adoption rate of 6.5%. This dynamic market has positioned Vietnam among the top five countries worldwide in cryptocurrency adoption for three consecutive years.
However, the lack of a clear legal and regulatory framework has exposed investors to considerable risks, including fraud, scams, money laundering and tax evasion. Many Vietnamese startups engaged in digital asset ventures have registered abroad, leading to capital outflows that undermine domestic financial control. Moreover, most digital asset transactions occur on international platforms beyond Vietnam’s regulatory reach, creating enforcement challenges.
To address these concerns, experts recommend urgent development of a detailed legal framework that clearly defines digital assets and outlines regulations for their use, taxation and trading. This framework aims to protect investors, prevent illicit activities and promote market stability.
Alongside legal reforms, creating controlled regulatory sandbox environments is viewed as critical to allow innovators to test new technologies and business models safely under government oversight.
The government is also investing in blockchain monitoring technologies and advanced data analytics to increase transparency and combat illegal transactions. Collaboration between public agencies and private sector stakeholders is seen as essential to ensure regulations are effective and adaptable to rapid technological change. These efforts include capacity-building initiatives for regulatory staff and public awareness campaigns to educate citizens on digital asset risks and benefits.
Recognising the complexity of these challenges, Vietnam is actively seeking knowledge from South Korea, a global leader in digital asset management. The Vietnamese Ministry of Finance has engaged with South Korean counterparts to explore potential partnerships and the transfer of expertise to accelerate Vietnam’s digital asset sector development.
South Korea’s experience in managing cryptocurrency exchanges and deploying advanced technologies for anti-money laundering efforts is considered highly valuable. Both countries share a commitment to combating financial crimes and enhancing market integrity through technology and regulation.
Vietnam’s long-term development strategy aims for high-income status by 2045, relying on sustained double-digit GDP growth and increased budget revenues. Digital and virtual assets, growing rapidly in ownership and trading activity, are seen as key contributors to this economic future. The Ministry of Finance has proposed cooperation with South Korean partners to develop blockchain-based financial products, research secure and transparent solutions, build comprehensive regulations and integrate virtual asset services with traditional finance to enhance user experience.
The Vietnamese government is drafting a pilot resolution to establish a domestic digital asset exchange, providing a controlled environment to collect market data and inform broader regulatory frameworks. Economists estimate that even a modest 0.1% tax on digital asset transactions could generate over US$800 million in annual government revenue, with additional income from corporate and personal taxes related to digital assets.
Through urgent legal reforms combined with international collaboration, Vietnam is positioning itself to harness the full economic potential of digital assets while safeguarding investors and ensuring a transparent, innovative market environment conducive to long-term sustainable growth. This approach is expected to attract further foreign investment, stimulate domestic innovation and contribute significantly to Vietnam’s digital economy ambitions.
By Vivek Dharmaraj – OpenGov Asia – August 1st, 2025