Vietnam is taking a significant step toward embedding blockchain into its national digital infrastructure through a newly announced alliance involving Techsmart Telecom, the Institute of Information Technology and CyberSecurity (IITCS), Venom Foundation, and GS Fund Abu Dhabi. The collaborative initiative is aimed at developing a robust, nationwide blockchain ecosystem aligned with Vietnam’s broader digital transformation agenda.
This strategic partnership will focus on integrating core areas such as infrastructure development, blockchain protocol deployment, regulatory design, and human capital enhancement. Techsmart Telecom is set to utilize its existing connectivity infrastructure to support the creation of a next-generation data center and a blockchain-powered digital currency framework. These efforts are in sync with the country’s Digital Infrastructure Strategy, which outlines goals for universal fiber optic coverage, nationwide 5G rollout, and the establishment of hyperscale data centers by 2030.
Venom Foundation, one of the key partners, is expected to implement its Layer-0 blockchain protocol. This platform is tailored for institutional applications and already supports several operational features, including fiat-backed stablecoins, on-chain compliance systems such as Know Your Customer (KYC) and Anti-Money Laundering (AML), ISO-standard financial messaging, and real-world asset tokenization. The foundation views the Vietnamese project as an opportunity to showcase its capabilities in facilitating efficient cross-border financial services and asset digitization.
Regulatory advancement stands as a cornerstone of the initiative. Following directives issued by the Prime Minister in March 2025, the Ministry of Finance and the State Bank of Vietnam have been tasked with formulating updated legal frameworks by May 2025. These proposals are expected to include a Draft Law on Digital Technology Infrastructure (DTI) to define digital assets, a sandbox model to enable controlled innovation, and a Crypto Pilot Resolution to regulate digital asset issuance, trading, and custody until at least 2027.
Despite significant adoption, Vietnam’s crypto regulatory environment remains in flux. With an estimated 17 million citizens holding digital assets valued at over $100 billion, the country ranks among the global leaders in interest and trading volume. However, the absence of clearly defined exchange licenses, asset classification guidelines, and consumer protection mechanisms has contributed to Vietnam’s placement on the Financial Action Task Force (FATF) gray list—underscoring the necessity for swift and structured legal reform.
The project’s initial phase, spanning 12 months, will prioritize foundational tasks including legal framework development, comprehensive market research, and data center blueprinting. These areas have historically served as obstacles in past blockchain ventures, making them a focal point for early execution.
Later phases will aim to reduce reliance on physical cash by promoting blockchain-based digital payment systems, while simultaneously strengthening cybersecurity protocols through distributed ledger technologies. IITCS is slated to oversee compliance activities and lead nationwide educational efforts that target both public institutions and private enterprises. The initiative’s success is expected to depend heavily on effective coordination across multiple government agencies and the flexibility to adapt pilot outcomes into long-term policies.
If successfully executed, the memorandum of understanding (MoU) could pave the way for Vietnam to serve as a model for blockchain integration at the national level—potentially setting a precedent for digital infrastructure development across the Asia-Pacific region.
