Da Nang and the Vision to Become a Vietnam Digital Asset Hub
At the "Danang Fintech Summit 2025" on June 7th, the Da Nang Department of Science and Technology received a proposal to pilot the use of USDT (Tether) for international tourists to exchange goods and services. This is one of the ideas Da Nang is exploring through a controlled testing environment (sandbox), aiming to facilitate the operation of new technology models locally before clear legal frameworks are established. Mr. Le Son Phong, Deputy Director of the Da Nang Department of Science and Technology, stated that Da Nang is progressively shaping its role in fostering a sustainable innovation ecosystem, including the fields of blockchain and digital assets. Leveraging its advantageous mechanisms, resources, and open ecosystem, the city plans to implement a sandbox mechanism for groundbreaking technological initiatives, coupled with piloting flexible policy models tailored to the realities of innovation.
I. Da Nang Considers USDT for International Tourist Payments
At the "Danang Fintech Summit 2025" on June 7th, the Da Nang Department of Science and Technology received a proposal to pilot the use of USDT (Tether) for international tourists to exchange goods and services. This is one of the ideas Da Nang is exploring through a controlled testing environment (sandbox), aiming to facilitate the operation of new technology models locally before clear legal frameworks are established.
Mr. Le Son Phong, Deputy Director of the Da Nang Department of Science and Technology, stated that Da Nang is progressively shaping its role in fostering a sustainable innovation ecosystem, including the fields of blockchain and digital assets. Leveraging its advantageous mechanisms, resources, and open ecosystem, the city plans to implement a sandbox mechanism for groundbreaking technological initiatives, coupled with piloting flexible policy models tailored to the realities of innovation.
According to Mr. Vo Duc Anh, Deputy Director of the Center for Startup and Innovation – Da Nang Department of Science and Technology, the city has received several controlled trial proposals from technology startups. The USDT payment proposal is currently under appraisal by local departments and agencies. USDT (Tether) is a cryptocurrency issued on a blockchain platform, pegged to the US dollar at a 1:1 ratio.
The project would allow international visitors to use their digital wallets to scan payment codes in USDT, while Vietnamese businesses would still receive Vietnamese Dong. Transaction processing would be handled through an intermediary system.
This initiative highlights Da Nang's forward-thinking approach to integrating emerging technologies into its economy. Do you think other cities in Vietnam might follow suit with similar pilot programs?
II. Da Nang's Bold Steps Towards a Digital Economy with Crypto Sandbox
Despite past assertions from Vietnamese authorities that cryptocurrency is not a legal tender or payment method in Vietnam, Da Nang is forging ahead with innovative regulatory approaches. At the Da Nang Fintech Summit on June 7th, Mr. Duc Anh cited National Assembly Resolution 136 of 2024, which grants the city the authority to implement a controlled testing (sandbox) mechanism. He explained, "For example, if a car is designed to run at 100 km/h but the law only allows 50 km/h, Da Nang can create a mechanism to permit exceeding that limit."
Mr. Duc Anh, Deputy Director of the Da Nang Center for Startup and Innovation, further elaborated that the sandbox policy has been institutionalized by a resolution at the People's Council level. "We process applications for the sandbox mechanism like any administrative procedure, similar to getting a birth certificate or a driver's license. All forms, regulations, and procedures are now clear. The processing time is about 2.5 months," he stated.
1. Da Nang's Vision for an International Financial Hub
- Mr. Le Hoang Phuc, Director of the Da Nang Semiconductor, Circuit, and Artificial Intelligence Center (DSAC), shared Da Nang's ambition to become an international financial center. With its strategic location, the city's commitment, government support, and high-quality human resources, Da Nang possesses significant potential to evolve into a regional financial hub. "The 'Han River Miracle' of Da Nang will inspire the formation of an international financial center and sandboxes aligned with international standards for the sustainable development of digital assets," Mr. Phuc expressed.
2. Navigating the Regulatory Landscape for Digital Assets
Associate Professor Dr. Binh Nguyen from RMIT University Vietnam, drawing from practical research, highlighted the immense challenge of establishing a clear legal framework for digital assets, not just for Vietnam but also for developed nations like the US, Singapore, and Sweden, which are still striving to balance development with corporate risks.
"For Vietnam, we cannot immediately control everything; we must select the most crucial areas for research and legislation, then expand to the entire industry," Dr. Binh commented. He suggested that Vietnam could prioritize a legal framework for buying and selling digital assets, followed by a clear distinction between asset types to mitigate risks. Special attention should be paid to stablecoins.
According to Dr. Binh, many Vietnamese currently use stablecoins for various purposes beyond just payments, reflecting a global trend where the worldwide transaction volume of stablecoins is now on par with the Visa payment system.
3. Da Nang's Potential as a Fintech Hub
Mr. Tran Hoang Giang, Incubation Director at FPT, who previously piloted a blockchain project in Da Nang, noted positive user feedback. He believes Da Nang has the potential to host international fintech events, similar to South Korea's Korea Blockchain Week.
From an international perspective, Ms. Lynn Hoang, Binance's Country Head in Vietnam, suggested that if Da Nang aims to become a financial center, it could draw inspiration from the UAE's model. In 2022, the UAE enacted virtual asset laws, embracing digital asset companies. The presence of these fintech companies led to a 51% increase in digital asset transactions in Dubai. According to the Binance representative, with its advantageous location and climate, Da Nang has many favorable conditions to become a regional financial center with the right policies.
Da Nang's proactive approach with its regulatory sandbox and vision for a regional financial center certainly sets it apart. It will be interesting to see how this evolves and potentially influences national policies on digital assets in Vietnam.