Vietnam Cryptocurrency Market Outlook to 2028

Vietnam Cryptocurrency Market Overview

• The Vietnam Cryptocurrency market is valued at USD 150 million, based on a five-year historical analysis. This growth has been driven by increasing digital adoption across the country, fueled by the rising demand for decentralized finance (DeFi) applications and the growing interest in digital assets as an investment tool. Government initiatives to explore blockchain technology and implement regulatory frameworks for digital currencies have also contributed to market expansion. The rise in remittance flows via cryptocurrencies, which offer lower transaction fees and faster transfers compared to traditional methods, has further bolstered the market's growth.
• Ho Chi Minh City and Hanoi dominate the Vietnam Cryptocurrency market due to their status as financial and tech hubs, where the concentration of tech-savvy populations and start-up ecosystems are high. These cities are home to the majority of cryptocurrency exchanges, fintech startups, and blockchain-related companies. The strong digital infrastructure, increasing investment in blockchain technology, and the presence of skilled professionals in these cities have created a conducive environment for the growth of the cryptocurrency ecosystem.
• Vietnam launched the Vietnam Blockchain Union in May 2022, aiming to create a pool of blockchain researchers and users from across the country. The government is encouraging the deployment of blockchain technology for socio-economic welfare and is working on developing laws and creating awareness for its implementation.

Vietnam Cryptocurrency Market Segmentation

By Cryptocurrency Type: Vietnams cryptocurrency market is segmented by cryptocurrency type into Bitcoin, Ethereum, Stablecoins, and Altcoins. Among these, Bitcoin holds the dominant market share, driven by its strong brand recognition and acceptance as a digital asset. Bitcoins decentralized nature and its position as the first and most popular cryptocurrency make it a preferred choice for both retail and institutional investors. Its high liquidity and large user base further reinforce its dominance in the market.

By Application: Vietnams cryptocurrency market is segmented by application into Remittances, E-commerce, Decentralized Finance (DeFi), and Investment and Trading. Remittances dominate this segment, with cryptocurrencies being used as a cost-effective and faster alternative to traditional remittance services. This is especially important for the large Vietnamese expatriate community, which regularly sends money back home. The low transaction fees and near-instant transfer capabilities of cryptocurrencies have made them the preferred choice for cross-border payments.

Vietnam Cryptocurrency Market Competitive Landscape

The Vietnam Cryptocurrency market is dominated by a few key players, which include both local and global exchanges. Binance, for instance, maintains a significant presence due to its extensive service offerings and user-friendly platform. Other global players, such as Coinbase and Kraken, are also making inroads by offering secure and regulated services. Local platforms like Remitano are prominent due to their focus on ease of use and support for peer-to-peer trading.

Vietnam Cryptocurrency Market Analysis

Growth Drivers

• Increased Digital Adoption: Vietnam's digital economy is expanding rapidly, with over 70 million internet users as of 2024, according to the Ministry of Information and Communications. This digital transformation is driving a surge in interest in cryptocurrencies, which align with the increasing use of mobile payments and digital wallets. The Vietnamese government's 2024 e-commerce roadmap further supports this by aiming to boost the country's digital infrastructure, increasing digital transaction volumes across various sectors. As digital literacy improves, cryptocurrencies have become more accessible to a tech-savvy population, promoting the adoption of decentralized assets like Bitcoin and Ethereum.
• Government Blockchain Initiatives: The Vietnamese government has been progressively promoting blockchain technology to enhance transparency and efficiency in various industries. In 2024, the Ministry of Science and Technology initiated several blockchain pilot projects, particularly in finance and supply chain management. The Vietnam Blockchain Association, officially recognized in 2023, aims to foster blockchain integration across sectors, increasing confidence in digital currencies. The government's focus on leveraging blockchain to streamline public services and enhance cybersecurity has also opened doors for the growing adoption of cryptocurrencies.
• Growing Interest in Decentralized Finance (DeFi): Vietnam is witnessing a surge in decentralized finance (DeFi) adoption, with local blockchain startups innovating DeFi platforms for lending, borrowing, and trading. DeFi transaction volumes in Vietnam reached record highs in 2024, supported by the nations vibrant fintech ecosystem. According to the World Bank, Vietnams remittance inflows, which stood at USD 18.1 billion in 2023, also bolster DeFi platforms, as remittance users seek cost-effective, decentralized solutions. As more Vietnamese users become familiar with DeFi, the country is positioned as a regional hub for decentralized applications.

Market Challenges

• Regulatory Uncertainty: Vietnam's cryptocurrency market remains in legal limbo as the government continues to deliberate over regulatory frameworks. As of 2024, the State Bank of Vietnam has neither fully legalized nor banned cryptocurrency transactions, creating an uncertain business environment. This lack of regulation has stunted institutional involvement and led to ambiguous tax policies for crypto traders. Furthermore, the absence of clear consumer protection mechanisms hampers trust in the market, delaying wider adoption. Policymakers have recognized this gap and are expected to introduce comprehensive regulations soon.
• Volatility and Security Concerns: Cryptocurrencies in Vietnam continue to experience high volatility, making them a risky investment for the average consumer. For example, Bitcoin's price fluctuated between USD 16,000 and USD 30,000 in 2023, which can lead to significant financial losses. In addition, Vietnam saw a 30% increase in crypto-related scams and hacks in 2023, according to the Ministry of Public Securitys cybersecurity report. This has raised concerns over the safety of crypto investments, especially as the market lacks robust security frameworks and insurance for asset protection.

Vietnam Cryptocurrency Market Future Outlook

Over the next five years, the Vietnam Cryptocurrency market is expected to witness significant growth driven by the increasing adoption of blockchain technology, regulatory support for digital assets, and the continued expansion of decentralized finance (DeFi) applications. As more institutional investors and businesses begin to explore cryptocurrencies as a viable financial tool, the market is likely to see increased demand for diversified crypto portfolios, secure trading platforms, and blockchain-backed financial services.

Market Opportunities

• Expanding Blockchain Use Cases: Blockchain technology is rapidly expanding beyond cryptocurrencies into industries such as supply chain, healthcare, and finance in Vietnam. The governments national strategy for Industry 4.0, launched in 2023, emphasizes the integration of blockchain for data transparency and automation. As of 2024, blockchain applications in agriculture have shown significant results in improving traceability, with more than 200 blockchain-based supply chain projects being implemented. This cross-industry application presents opportunities for crypto platforms to innovate and capture new sectors.
• Partnership with Financial Institutions: Partnerships between cryptocurrency platforms and Vietnam's traditional financial institutions offer a gateway to scale crypto adoption. In 2024, several fintech startups entered collaborations with banks to offer crypto-based remittance and lending services. These partnerships provide credibility and regulatory clarity, driving consumer trust. Furthermore, joint ventures can expand cryptos use case into everyday transactions, such as bill payments and e-commerce. This synergy between fintech and traditional banks represents a key growth opportunity for Vietnams cryptocurrency market.