Vietnam stands at a pivotal moment in its economic evolution, with plans to launch digital asset exchanges that could position the country as a competitive player in the global financial landscape. With over 17 million Vietnamese already holding digital assets and blockchain investment inflows exceeding US$105 billion in 2023-24, the demand for a regulated, transparent marketplace is clear. Yet, as the government prepares to pilot these exchanges under new legislation, the challenges of trust, regulation, and global integration loom large.
A Fragmented Market Seeking Structure
The digital asset sector in Vietnam has long operated in a regulatory gray area, lacking a legally recognized exchange to provide investors with confidence and transparency. This fragmented trading environment has hindered the country’s ability to fully capitalize on the growing interest in cryptocurrencies like Bitcoin and Ethereum. The passage of the Law on Digital Technology Industry, set to take effect on January 1, 2026, marks a significant step forward. This legislation lays the groundwork for piloting digital asset exchanges, aligning with Vietnam’s broader vision of establishing an international financial center.
The Ministry of Finance is currently drafting regulations to license multiple exchanges, a move that analysts believe could legitimize a thriving investment channel, boost tax revenues, and attract foreign capital. Phan Đức Trung, President of the Vietnam Blockchain and Digital Asset Association (VBA), has indicated that around five domestic exchanges may be licensed during the pilot phase. These platforms could potentially connect with international markets to ensure liquidity and competitiveness, offering trading in major cryptocurrencies. 
Building Investor Confidence Through Regulation
At a recent talk show in Ho Chi Minh City titled What Opportunities for Digital Asset Exchanges? held on August 21, Trần Xuân Tiến, General Secretary of the HCM City Blockchain Association, highlighted the critical need for a clear legal framework. “A clear, lawful framework would build investor confidence. If Vietnam pilots five exchanges, the market will become far more transparent and able to unlock its true potential” he said. However, Tiến also cautioned that time is of the essence, warning that delays in launching these exchanges within the next one to two years could see Vietnam fall behind regional competitors.
The urgency is compounded by the need to balance speed with robust safeguards. Tiến advocated for a hybrid model where local exchanges manage liquidity and data, while international platforms participate to foster competition and share expertise. Drawing inspiration from models in Dubai, Singapore, and South Korea—where digital asset accounts are linked to banks for transparency—Vietnam could create a system that prioritizes both innovation and security.
Learning from Global Leaders and Local Needs
Nguyễn Thế Vinh, CEO of Ninety Eight (formerly Coin98), emphasized the transformative potential of blockchain technology, noting its capacity for low-cost transactions, high liquidity, and global connectivity. “If Vietnam moves in the right direction, it could attract foreign capital and build a fintech ecosystem on par with global leaders” he stated. While Vietnam has the capability to develop its own exchanges, Vinh stressed the importance of partnering with established global platforms to leverage their infrastructure and expertise. “More importantly, the key is to act now. If we delay, the opportunity will slip away even though the resources are already here” he added.
Transparency and investor protection are paramount for the sustainable growth of Vietnam’s digital asset market. Huỳnh Quốc Nam, Business Development Director of OKX Global, referenced the collapse of a major global exchange as a cautionary tale, pointing to the misuse of user assets as the cause of its insolvency. To mitigate such risks, Nam urged Vietnamese exchanges to publish transparent trading volumes and liquidity data, provide asset guarantees, and implement investor insurance. Robust cybersecurity measures and strict know-your-customer (KYC) protocols are also essential to prevent fraud and money laundering.
Nam further suggested that Vietnam’s digital asset market should expand beyond basic products to include derivatives and margin trading, which dominate international crypto activity but are currently absent domestically. “A sandbox will allow investors to try these products in a controlled environment, avoiding unnecessary risks” he noted. This regulatory sandbox approach could serve as a testing ground for innovative financial products while maintaining oversight.
Legal Standards and International Collaboration
Đào Tiến Phong, Director of the law firm Investpush, underscored the importance of trust and credibility in operating digital asset exchanges. He advocated for stringent licensing standards to ensure that virtual asset service providers (VASPs) possess adequate operational capacity, technical capabilities, and security infrastructure. Drawing comparisons to licensing regimes in Singapore, Hong Kong, and Dubai, Phong recommended that Vietnam adopt similar rules on asset custody, account guarantees, minimum capital requirements, and mandatory insurance. “Vietnam should adopt similar standards and require licensed exchanges to have a legal entity and physical presence in the country to facilitate management” he said.
Phong also highlighted the role of the Law on Personal Data Protection in safeguarding investor information within the digital asset trading ecosystem. He proposed a dual approach of allowing international exchanges to operate domestically—enabling Vietnam to learn from their technology and models—while simultaneously nurturing homegrown platforms to better manage data and protect users. “Vietnam must move quickly but with a safety buffer through a regulatory sandbox” he emphasized.
A Market with Vast Potential
According to the Vietnam Blockchain Association, licensed exchanges could facilitate trading in up to 50 cryptocurrencies, including Bitcoin, Ethereum, USDT, and USDC. This diversity would cater to the significant domestic demand and position Vietnam as an attractive destination for international investors. The draft decree on the pilot implementation of digital asset trading is expected to be finalized later this month, signaling the government’s commitment to advancing this sector.
The economic implications of a regulated digital asset market are substantial. Beyond legitimizing a popular investment channel, licensed exchanges could open new funding pathways for tech startups, a sector critical to Vietnam’s ambition of becoming a regional innovation hub. Increased foreign capital inflows would further bolster economic growth, while expanded tax revenues could support public infrastructure and services.
Challenges on the Horizon
Despite the optimism, significant challenges remain. The absence of a legal framework has historically stifled the digital asset sector, and even with new legislation, implementation will be key. Ensuring that licensed exchanges adhere to high standards of transparency and security will require rigorous oversight from regulators. Additionally, Vietnam must navigate the complexities of integrating with global markets while protecting national interests, a delicate balancing act that could define the success of this initiative.
Cybersecurity risks are another pressing concern, particularly given the high-profile collapses of international exchanges due to hacking and fraud. Vietnam’s exchanges will need to invest heavily in robust systems to protect user assets and data, especially as the market expands to include more complex financial products like derivatives. The government’s proposed regulatory sandbox offers a potential solution, allowing for controlled experimentation, but its effectiveness will depend on the quality of oversight and the willingness of regulators to adapt based on pilot outcomes.
Moreover, competition in the region is fierce. Countries like Singapore and South Korea have already established themselves as leaders in digital finance, with sophisticated regulatory frameworks and thriving fintech ecosystems. If Vietnam is to catch up, it must not only act swiftly but also ensure that its policies are competitive and attractive to both domestic and international stakeholders.
Looking Ahead: A Digital Financial Future
As Vietnam prepares to launch its digital asset exchanges, the stakes could not be higher. Success in this endeavor could transform the country’s fragmented trading landscape into a vibrant, globally competitive financial hub, unlocking billions in investment and innovation. However, achieving this vision will require a delicate balance of speed, regulation, and international collaboration.
The coming months will be critical as the Ministry of Finance finalizes its draft decree and regulators begin the licensing process. With the Law on Digital Technology Industry set to take effect in 2026, Vietnam has a narrow window to establish itself as a leader in digital finance. Whether it can build the trust and credibility needed to attract investors and compete on the global stage remains an open question, but the potential rewards make this a journey worth watching.
