Embed Financial Group Holdings Pte Ltd (EFGH) and Digital Asset Protection HHP High-Tech Center JSC (DAP HHP High-Tech Center) have formalized a joint venture alongside a broader strategic partnership aimed at developing blockchain infrastructure and multiple large-scale digital initiatives in Vietnam. The agreements, signed in Ho Chi Minh City, outline plans to establish VNL1, a national blockchain platform designed to support the country’s regulatory framework for product identification and traceability.
The signing ceremony included senior leadership from both organizations. EFGH was represented by its executive chairman, while DAP HHP High-Tech Center’s chairman and chief executive officer also participated. It was indicated that the latter would additionally assume the role of chief executive officer of the newly formed joint venture entity.
EFGH, headquartered in Singapore, operates as a digital financial infrastructure provider, focusing on embedded payments, programmable protection systems, and sovereign digital frameworks across Asia and Africa. DAP HHP High-Tech Center, based in Vietnam, specializes in digital asset identification and validation, and has been involved in advancing new asset classes through high-tech platforms while supporting the country’s evolving digital economy.
VNL1 to Address Counterfeiting and Regulatory Gaps
The joint venture will create VNL1 Co., Ltd., which will develop and operate the VNL1 platform. This initiative is aligned with Vietnam’s draft decree on product identification, authentication, and traceability, which is expected to mandate a national blockchain system by April 2027 under the supervision of the Ministry of Public Security.
The platform is intended to address the growing issue of counterfeit goods, particularly in manufacturing and food sectors. Legislative assessments have suggested that counterfeit production and trade increased by more than 47 percent in the previous year, highlighting the urgency for a unified verification system.
At present, oversight responsibilities are distributed across multiple government ministries, resulting in fragmented data management. VNL1 is expected to resolve this by introducing a unified blockchain-based data layer. Built as a Layer 2 solution on Ethereum, the system is projected to process more than 1,000 transactions per second at minimal cost, with infrastructure hosted domestically within Vietnam.
Dual Platforms to Enable Trust and Financial Settlement
VNL1 will incorporate two core components designed to enhance both product traceability and financial transactions. The first platform, V-TRUST, is expected to generate globally compatible product identification codes and record custody transfers using government-issued digital identifiers. This approach is intended to provide a tamper-resistant record of product origin and movement, accessible to regulators and consumers through QR codes or near-field communication technologies.
The second component, V-STABLE, is positioned as a sovereign digital settlement mechanism supporting Vietnam’s emerging financial ecosystem. It is designed as a compliant digital token backed by the Vietnamese Dong, with reserves maintained in instruments approved by the State Bank of Vietnam. The system is expected to facilitate real-time, low-cost financial transactions while preserving national monetary control. It was indicated that reserve yields could potentially offset operational costs, although the primary objective remains enabling scalable and secure settlement across the economy.
Broader Digital Strategy Across Six Projects
Alongside the joint venture, both parties signed a Comprehensive Strategic Partnership Framework Agreement that establishes the governance and execution structure for six projects, including VNL1. The agreement introduces a structured timeline, requiring detailed project-level statements of work to be finalized within 180 days from mid-April 2026.
The additional five initiatives span multiple sectors critical to digital transformation. These include an advanced fintech platform offering services such as supply chain finance, embedded insurance, tokenization of real-world assets, and AI-driven credit analytics. Another project focuses on a modular tourism kiosk system intended for both domestic use and international deployment.
Further initiatives include a national platform for commodity pricing and transparency, a sustainably powered data center and artificial intelligence compute network, and a mixed-use development combining fintech, academic, and real estate components within Ho Chi Minh City’s international financial hub.
To oversee these efforts, the partners plan to establish a joint steering committee comprising senior executives from both organizations. The committee is expected to meet quarterly to monitor progress and coordinate execution across all projects. The framework agreement is set to run for an initial three-year period with annual renewals thereafter.
Strategic Expansion for EFGH
This collaboration represents EFGH’s first venture in Vietnam and its first national-scale project in Asia. The initiative is expected to act as a catalyst for similar digital finance and blockchain-based projects across other regions, including Africa, where the company already maintains a presence. The partnership reflects a broader ambition to build integrated digital ecosystems that combine infrastructure, financial services, and emerging technologies at scale.
