Vietnam: A Rising Hub for Institutional Investment in Blockchain
Vietnam is rapidly emerging as a significant center for institutional investment in blockchain infrastructure and digital assets. Spurred by regulatory clarity, surging retail adoption, and strategic international partnerships, the Vietnamese landscape is evolving into a beacon for global investors. As the digital economy in Southeast Asia accelerates, the country’s proactive policy reforms and a young, tech-savvy population offer unique opportunities for those looking to engage with the region’s next frontier.
Regulatory Clarity Fuels Institutional Confidence
The introduction of the Digital Technology Industry Law (DTI Law) in June 2025 was a defining moment for Vietnam’s digital asset market. It marked the first time that crypto assets were legally recognized as digital property—laying the groundwork for a more transparent and secure trading environment. The law establishes capital requirements for exchanges and introduces tax incentives aimed at fostering blockchain innovation.
Set to take effect in January 2026, the framework mandates comprehensive Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, along with proof-of-reserves reporting. This structure directly addresses institutional concerns about transparency and risk. The positive impact of this regulatory landscape is already evident, with major players like Military Bank (MB) collaborating with South Korea’s Dunamu Inc. to launch Vietnam’s first licensed digital asset exchange, harnessing Upbit’s compliance infrastructure to meet global standards.
FDI Inflows and Market Growth Signal Institutional Appetite
Vietnam’s blockchain sector is drawing not just local but also substantial foreign direct investment (FDI). In the first half of 2025, the nation recorded $21.51 billion in FDI inflows, reflecting strong confidence in its long-term economic potential. This influx of capital is increasingly directed towards blockchain infrastructure, evident in partnerships between global exchanges like KuCoin and local firms to develop pilot trading platforms and digital payment solutions.
Annual crypto transaction volumes have surged to over $100 billion, supported by the active participation of approximately 21 million Vietnamese adults trading digital assets. Additionally, the government’s National Strategy on Blockchain (2025–2030) aims to harness this momentum, targeting a 17.4% compound annual growth rate for the blockchain sector. With projections estimating the market could reach $925 million by 2029, this growth is fueled by a youthful population (with a median age under 33) and a vibrant startup scene featuring innovators like Sky Mavis and Kyber Network in decentralized applications and decentralized finance (DeFi) protocols.
Strategic Partnerships and Global Integration
Vietnam’s ambition to lead in the blockchain space is underscored by various international collaborations. The MB Bank-Upbit partnership showcases how the country’s regulatory progress aligns with South Korea’s advanced crypto infrastructure to establish a compliant, institutional-grade exchange. Furthermore, KuCoin’s collaboration with the Vietnam Blockchain and Digital Assets Association (VBA) is accelerating the development of international-standard risk management tools and transparent trading platforms.
These partnerships serve the broader National Digital Transformation Program, which aims to digitize 80% of public services by 2025—further embedding blockchain technology into Vietnam’s economic framework.
Comparative Advantage in Southeast Asia
Vietnam’s ascent in the blockchain domain becomes even more remarkable when evaluated in the context of its regional peers. Although Singapore remains a dominant player as a fintech and digital banking hub and the Philippines focuses on using blockchain for fiscal transparency and crypto startup funding, Vietnam’s unique combination of regulatory agility, foreign investment, and grassroots adoption offers a compelling value proposition.
For instance, while the Philippines experienced a 21.3% rebound in FDI in 2025 due to blockchain-driven governance reforms, Vietnam’s impressive $100 billion in annual crypto trading volumes and $5 billion in blockchain-related FDI highlight its institutional readiness and growth scale.
Challenges and Opportunities
Despite its desirable trajectory, Vietnam does face several challenges. A notable shortage of skilled talent in blockchain development and limited institutional participation in crypto markets present obstacles. However, government-led training programs alongside public-private partnerships are working to address these issues.
The Ministry of Finance’s draft decree to pilot digital asset transactions further signals a commitment to creating a supportive ecosystem. For investors, these developments signal a significant opening to engage with a market primed for rapid institutional expansion.