An Overview on Vietnam’s Cryptocurrency Market, Part 1
A quick sum-up on the key contexts, movements, and things to know about the Cryptocurrency Market in Vietnam
Source: Kyros Ventures, Vietnam Cryptocurrency Market Report 2021
1. Macroeconomic Overview
Since opening up again to the global market in the early 1990s, starting with the Reformation movement kickstarted by the government, Vietnam has experienced steady economic growth. Despite certain periods of economic struggles due to global depressions, Vietnam has enjoyed what the World Economic Forum (WEF) recently dubbed “economic miracle”.
This impressive growth, while quickly transforming the economy and society, also comes with sustainability. According to WEF’s Inclusive Development Index, Vietnam has deployed heavy public investments into building infrastructures and human resources. Through hefty improvements in education, especially at the primary level, Vietnam has produced a numerous generation of IT and software engineers, enough for international corporations like Intel, Bosch, Samsung, etc to set up R&D centers here while also nurturing the development of local IT companies such as FPT, VNG, CMC, and so on.
The capital injection into local infrastructure also exhibits successful returns, with Vietnam becoming one of the most mobile-friendly countries in APAC. Per a new 2021 report by WeAreSocial, Vietnam grossed 68.72 million Internet users and 65.08 million unique mobile users, with 94.3% of which converted into smartphone users. This level of penetration has helped Vietnam’s Internet economy almost triple between 2019–2021, reaching $21 billion in 2021, according to a Google/Temasek/Bain report on Southeast Asia’s Internet economy.
2. Cryptocurrency’s Mass Adoption Growth
Building on the aforementioned macroeconomic advantages, Vietnam has achieved significant tractions in the mass adoption of cryptocurrency. A 2021 survey by Statista found that Vietnam ranks 2nd globally in terms of cryptocurrency adoption, with 21% of the respondents saying that they either owned or used cryptocurrency.
In August 2021, the crypto-analysis firm Chainalysis also published its second-ever Global Crypto Adoption Index. The Chainalysis team tracked data across 7,000 crypto service providers and found “meaningful crypto activity” in 158 countries, among which Vietnam topped the adoption index as the most active market. The adoption in Vietnam as well as other developing countries, according to Chainalysis, “in large part because they have huge transaction volumes on peer-to-peer (P2P) platforms when adjusted for PPP per capita and internet-using population.”
Another survey by Finder.com early in February 2022 even indicated that Vietnam has the highest rate of cryptocurrency ownership in the world, with 28.6% of its online population saying they own a form of cryptocurrency. Furthermore, the report found that Vietnamese Internet users have a remarkably positive attitude and high awareness towards cryptocurrency: 59% of the respondent are aware of cryptocurrency, whereas 68% feel positive about crypto use. The majority of crypto users are also very young, as 70.1% of the crypto users belong to the age group of 18-34.
Read Part 2 here:
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