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Blockchain Technology

In 2017, the Vietnamese banking industry began to experience the use of block­

chain in money transfer services by three other banks in Vietnam: MBBank, Tpbank

and SCB. The introduction of this technology has brought a great achievement: The

annual equity is 1.4 times (SCB), 2.3 times (MBBank) and 3.2 times higher (Tpbank)

in 2019 compared with 2017. In the same period, profit after tax rose by 8.33% (SCB),

34.74% (MBBank) and 95.82% (Tpbank).

In 2018, using blockchain technology, NAPAS and three commercial banks

started to experiment with a money transfer model. For an e-commerce transac­

tion, the average cost is about 1–2%, whereas blockchain-enabled transactions will

cost as little as 0.1% or less. The lowest fee reduction promotes the extension of

financial services to a wide variety of clients and small businesses towards com­

prehensive financial targets, according to SupercruptoNews (2019). As suggested

in the Vietnam Banks Association (2019), HSBC in 2019 and BIDV as well as

Vietinbank in 2020 are formally releasing L/C to introduce blockchain technology.

Blockchain technology benefits include high security, the quick processing speed

of transactions, reducing paperwork, saving time, restricting errors, allowing par­

ties to complete workflows in real time, and maximizing digital L.C. issuance

transactions.

12.5.2  Data and Methodology

The author uses qualitative research methods to evaluate the application of financial

technology, especially blockchain, and in-depth interviews are conducted with two

objectives. The first objective of the in-depth interview is to define the reality of the

application of financial technology in general, especially blockchain, in Vietnamese

commercial banks. The second objective is to consider the blockchain trend in bank­

ing institutions and financial institutions. The writer conducts in-depth interviews

with 6 leading experts and 15 employees working in Vietnam’s commercial banks.

The survey is carried out directly by the survey questionnaire, and through Google

Docs, the survey is also online. The author also surveyed young individuals who

use banking products and services. The total number of accurate surveys is 62. The

survey site is in Binh Duong’s province, bordering Ho Chi Minh City, where the

southern part of Vietnam is developing dynamically.

12.5.3  Results

An in-depth survey of leaders and employees employed at 14 commercial banks in

Vietnam is depicted in Figure 12.4. The proportion of males surveyed in the survey

sample is higher than that of females, with the workers being mainly 22–30 years

old. Similarly, Figure 12.5 shows the online survey for leaders and employees at 11

commercial banks in Vietnam via Google Docs. The number of men surveyed in the

survey sample is higher than the proportion of women, including the director, the

head of the department and the workers; the survey age is mainly 22–30 years old.

In Table 12.1, the survey findings are summarized: The table synthesizes reviews on

blockchain technology trends in Vietnam.