KTFA:

Samson:  Vietnam Blockchain Summit 2022 begins in Hà Nội

20th October, 2022

The Vietnam Blockchain Summit 2022 began yesterday in the capital city of Hà Nội. The event reflects the Southeast Asian country's enthusiasm for the adoption of cutting-edge technologies and the pursuit of innovation to spur national socio-economic development.

Speaking to participants at the summit, Trương Gia Bình, co-founder of FPT Corporation, one of Việt Nam's leading tech companies, and Chairman of the Vietnam Software Association (VINASA) said Việt Nam is ready to embrace the blockchain technological revolution.

"Twenty years ago, we believed Việt Nam would one day become a hub for new technologies," he said, "The summit this year is a recognition of our pathfinder spirit and the willingness to embrace the new technology."

He said the torchbearers today are the ones who will build a new world with technology as its foundation. He urged Việt Nam to strive to become a major tech hub to sustain its development momentum and to create technological breakthroughs in the future.

Industry experts, similarly, have considered Việt Nam, a developing country, as fertile land for blockchain tech with almost limitless potential for implementation and application. Of the world's top 200 blockchain businesses, ten were started by Vietnamese and offered various impactful tech solutions, setting a solid foundation for the future development of the new technology.

In 2021 alone, transactions worth US$6 trillion were settled on the Ethereum platform, according to crypto research firm Messari, in comparison to $1.25 trillion on Paypal and $13 trillion on VISA. The global blockchain market was valued at $4.67 billion last year. It has been projected to reach $7.18 billion in 2022 and $163.8 billion by the end of 2029.

Numerous countries around the world have started using blockchain for citizen ID and administrative applications. The world's largest corporations including IBM, Amazon and McKinsey have also taken advantage of the new technology to better manage their supply chains. Economists said they believe up to $450 billion can be saved annually by using blockchain to fight off counterfeits and reduce business risk in various fields.

Phan Đức Trung, Deputy Chairman of the Vietnam Blockchain Association, said the technology has the potential to open many new doors for the global economy. The summit, the first to be held in Việt Nam, offered great opportunities for blockchain players to connect, exchange ideas and contribute to the digital economy in the future.

The government of Việt Nam places great importance on the development of new tech and the country's digitalisation process with an objective to create value and economic breakthroughs, according to VINASA. The summit was considered an excellent opportunity for policymakers to listen to recommendations and feedback on how to build a blockchain economic model in Việt Nam.

As early as 2020, new tech has been named as one of the government's key priorities in R&D goals, as well as the adoption and implementation of the Fourth Industrial Revolution in Decision 2117/QĐ-TTg approved by the Prime Minister's Office.

A year later, Prime Minister Decision 942/QĐ-TTg has given the green light to the establishment of Việt Nam's legal framework to pilot, accept and adapt to next-generation digital services. The decision has been well-received by Việt Nam's tech community, which has spearheaded the development of new tech fields including blockchain, artificial intelligence (AI), virtual reality (VR) and augmented reality (AR).

Speakers at the summit also discussed the latest trends in development, how to train and develop human resources in the field, recommendations for countries to adopt and how businesses can utilise the new technology to improve business performance.

Vietnamese and international leading blockchain companies including Kyber Network, Gala Games, Sky Mavis, DFG, FTX, Binance, BNB Chain, Chainalysis, OKC and AAX were to hold talks and exhibitions at the summit, which ends today (October 20).   LINK

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Samson:  Vietnam’s economy registers strong growth in Q3: World Bank

21st October, 2022

Việt Nam’s GDP grew by 13.7 per cent year-on-year in the third quarter of this year and 8.9 per cent over the first three quarters, according to a report released by the World Bank (WB) on October 20.

The bank’s October report, Vietnam Macro Monitoring, shows that industrial production and retail sales posted another month of high growth rates (13.0 per cent and 36.1 per cent year-on-year) which could be attributed both to strong economic activities and to the low-base effects.

Both export and import growth moderated in September due to weakening demand from major export markets. FDI commitment fell in September, affected by the heightened uncertainty about global economic prospects while FDI disbursement continued to improve, the report says.

Despite softening energy prices, CPI inflation accelerated from 2.9 per cent in August to 3.9 per cent in September largely due to higher education costs and rents. Core CPI inflation accelerated as well, from 3.1 per cent in August to 3.8 per cent in September. The terms of trade deterioration eased in the third quarter compared to the previous three months.

Credit growth accelerated from 16.2 per cent in August to 17.2 per cent in September as the State Bank of Vietnam (SBV) raised credit growth limits on some commercial banks.

With strong demand for credit, the average overnight interbank interest rate rose from 3.5 per cent in August, reaching 5.48 per cent in mid-October, the highest since 2013.

The Vietnamese đồng continued to depreciate against a strengthening US dollar in September (1 per cent month-on-month and 3.8 per cent year-on-year). To stabilise the domestic currency, the SBV raised two key policy interest rates and the cap on key short-term rates on deposits denominated in local currency by 100 basis points, the first rate hike since April 2020.

The budget balance posted a US$0.5 billion deficit in September for the first time in 2022, but still registered a $10.5 billion surplus over the first 9 months of the year. Given the budget surplus, year-to-date government bond issuance reached only 28.7 per cent of annual plan, compared to 67.9 per cent in 2021.

According to the report, while the economic recovery has remained strong, heightened uncertainties related to the slowing global economy, rising domestic inflation, and tightening global financial conditions warrant increased vigilance and policy agility.

Given the economy has not fully recovered and growth in main export markets is expected to slow, continued active fiscal policy to support the economy should be closely aligned with economic outcomes and coordinated with monetary policy.

At the same time, as CPI and Core CPI are reaching 4 per cent – the policy rate set by the authorities – monetary authorities should be ready to consider further tightening of monetary policy to ensure inflation remains anchored.

Given the end of forbearance and tightening financial conditions, the financial sector faces heightened risks and prompt SBV guidance would help stem materialisation of such risks at the sector level, potentially affecting the real economy. LINK

Samson:  Việt Nam attends 29th APEC Finance Ministers’ Meeting

21st October, 2022

Việt Nam has posted high economic growth despite the fact the global economy and the Asia-Pacific Economic Cooperation (APEC) region faces many challenges as well as uneven incomplete recovery, Deputy Finance Minister Tạ Anh Tuấn said at the 29th APEC Finance Ministers’ Meeting held in Bangkok on October 19-20.

Việt Nam's third-quarter gross domestic product grew 13.67 per cent from a year earlier, raising its nine-month GDP growth rate to 8.83 per cent, he said

According to Tuấn, Việt Nam's proactive, flexible and effective management of fiscal and monetary policies has contributed to curbing inflation, maintaining macroeconomic stability, and creating momentum for economic recovery.

In order to promote growth, strengthen the economy's resilience, ensure macroeconomic stability and national financial security, Việt Nam will prioritise financial policies associated with perfecting regulations on mobilising national financial resources, strictly controlling the State budget deficit and public debt, and contributing to improving the resilience of national finance, he said.

The Vietnamese official also said that the contents of cooperation and international experience at the 29th APEC Finance Ministers’ Meeting are particularly practical to the current vision and mission of the Ministry of Finance. Themed “Advancing Digitalisation, Achieving Sustainability”, the meeting attracted the participation of more than 200 representatives from 21 APEC member economies and international organisations.

Participants at the event discussed economic and financial prospects and shared views on collaborative policy actions to achieve the Putrajaya Vision 2040, including the approval of the Aotearoa Action Plan with a view to developing an open, dynamic, resilient and peaceful Asia-Pacific community by 2040, for the prosperity of all its people and the world future system. The meeting reviewed and discussed the implementation of the 2022 initiatives namely "Sustainable Finance" and "Digitalisation of the Economy".

Thai Finance Minister Arkhom Termpittayapaisith affirmed that creating conditions for all economic sectors to have access to sustainable and effective finance is especially important to achieving inclusive and sustainable economic growth while fully harnessing the power of digitalisation for inclusive fiscal policy, including reducing the digital technology gap between different socio-economic groups.

Participants also shared their opinions on the economic situation in the post-COVID-19 period, positive and negative factors for economic recovery, and discussed financial policies to promote growth, focusing on  the implementation of "Sustainable Finance" and "Digitalisation of the Economy".   LINK