Growing at a rate of 6-7% per annum, Vietnam rivals China as one of the fastest emerging economies in Asia. Many experts agree that this rapid development is due to the country’s liberalised trade policies, lower cost of doing business, and investing in human resources.
Moreover, Vietnam’s government is also quick to adopt promising financial technologies and provide infrastructure for these programs. As a result, entrepreneurs and investors are looking forward to venturing in the nation’s local markets.
With this in mind, it is expected that Vietnam will take steps in integrating revolutionary changes in the financial sector, including cryptocurrency. But, what are cryptocurrencies, and what are the benefits of adopting this financial technology? Find out more about digital assets and how to prepare for its implementation in Vietnam.
How Crypto Currency is Changing the Financial Sector
Cryptocurrency, such as Bitcoins, are digital assets that are used to exchange for goods and services. It’s used for peer-to-peer exchanges without the need for a licenced intermediary and is popular due to its convenience.
Despite being unauthorised by many banking institutions, governments like Australia, Canada, and the USA are allowing its citizen to use Bitcoins for exchanges [Investopedia]. High profile investors, like billionaire Jim Breyer, are one of the living proofs that venturing in these kinds of assets offer sufficient returns in both the short and long term [Fortune]. This could only mean that the cyber-currency market is expected to be worth USD 84 Billion by 2024.
This is also the reason why Vietnam is taking the initiative to research the use of blockchain technology for the creation of the first state-authorised digital currency. In fact, it is reported that the Linh Thanh Group, the country’s largest distribution company, is collaborating with KRONN Ventures, a Switzerland-based company, to establish the legal cryptocurrency exchange in Southeast Asia [PR Newswire].
But, establishing a government-regulated crypto economy will prompt changes in the country’s financial laws. And, it can cause existing markets to shift its current economic projections. That is why entrepreneurs and investors should be prepared for market disruptions as soon as this currency becomes available.
3 Ways To Prepare for Vietnam’s Crypto Economy
Digital assets present opportunities for new markets to emerge and existing sectors to change. This commodity, however, is different from the standard stock investment due to its volatile nature. So, here are 3 tips to help you prepare for the new economy.
Identify the Markets that Benefit from Digital Assets
New commodities will incur changes to market behaviour. But, Vietnam’s digital market has yet to be fully explored. As a consequence, there is no way to accurately gauge the cyber coin’s impact on the nation’s financial sector.
So, it would be advisable for entrepreneurs and speculative experts to review data from nearby Asian economic blocks. Identify how markets reacted in response to the spread of altcoins and focus on the most advantageous sector.
Review the Country’s Corporate Laws
Every nation strictly enforces its currency exchange laws. So, it is expected that authorised digital coins will also be subject to the similar, if not more stringent, regulations. Reviewing the local financial guidelines and consulting trusted corporate experts will provide insight on how to take advantage of these crypto coins and predict market changes.
Related: How to Open a Corporate Bank Account in Vietnam
Monitor Platforms that Allow for Crypto Exchanges
Similar to stocks, crypto assets require trading platforms that connect buyers and sellers. Investing in infrastructure which can handle these exchanges can prove to be a lucrative endeavour. Focus more on e-commerce businesses that allow for digital coin transactions and determine if it is ideal to invest in.
Related: Corporate Solutions for Vietnam-based Companies
Consult a Corporate Service Expert and Get Ready for a Crypto Economy
There is no denying that a government-sanctioned cryptocurrency will impact Viet Nam’s traditional markets and create emerging sectors. New rules will be implemented to regulate the use of this asset along with a new set of statutory requirements.
But, by taking the initiative and consulting a trusted corporate service firm, you can rest assured that all your requirements can be fulfilled properly. Their team of financial experts can guide you through the proper compliance process. Furthermore, they can provide sound advisory solutions on how to adapt to cryptocurrencies. Thus, ensuring that you are ready for Vietnam’s digital economy.
Contact DesFran corporate services today and ask us about Vietnam’s government-backed digital asset.
References
What is Cryptocurrency: Everything You Must Need To Know, blockgeeks.com
Crypto-Currency and Cyber-Currency Market Worth 84 billion US$ By 2024, marketwatch.com
History of Vietnam’s Bitcoin & Cryptocurrency Regulation, cryptocurrencyhub.io
How Should CMO’s Prepare For A Cryptocurrency Future, forbes.com
