Le Bich Loan (standing), acting head of Saigon Hi-Tech Park’s board of management, speaks at a press conference yesterday in HCM City. — VNS Photo Bo Xuan Hiep

The use of blockchain technology in HCM City’s smart-city programme will top the agenda of an international conference to be held on Friday at the Saigon Hi-Tech Park in District 9.

Hundreds of local and international researchers, entrepreneurs, start-up representatives and managers in the field of blockchain will participate in the sixth annual conference.

The one-day event aims to promote cooperation among scientists, experts and enterprises at home and abroad in the field of blockchain technology.

Speaking at a press conference on Wednesday, Le Bich Loan, acting head of the Saigon Hi-Tech Park’s board of management, said that blockchain technology was being widely used in finance and banking and would play a major role in smart city development.

The use of blockchain technology will also contribute to ensuring transparency, cost savings and better security, she added.

Many countries have designed new research and development strategies for blockchain technology. The US, United Arab Emirates (UAE), Estonia, and China are leaders in the use of blockchain in building smart cities.

“Viet Nam has initiated programmes to promote research and application of blockchain to meet the goals of sustainable development and global integration,” Loan said.

Thach Tan Quang Minh, advisor at Beowuft Blockchain, noted that many Vietnamese start-ups did not know how to use blockchain effectively.

Le Thanh Nguyen, director of the Saigon Hi-tech Park Incubator Centre, a non-profit subsidiary of the Saigon Hi-tech Park’s management board, said that many Vietnamese start-ups did not see the long-term benefits of the technology.

The incubator centre will sign an MoU with South Korea’s CBA Ventures, which focuses on technology transfer and human resource training in blockchain technology, according to Nguyen.

At the conference, there will be an exhibition on blockchain products and technologies’ achievements and opportunities for cooperation and technology transfer between Viet Nam and other countries.

Viet Nam is among the world’s top 20 countries in terms of the number of internet users, social media users and smartphone users.

In addition, the young population, fast internet development, and increased number of e-payments are other factors that make Viet Nam favourable for blockchain technology. However, challenges exist, including changing the resistance of companies and consumers to use newer technologies.

The country also lacks a specific legal framework to supervise new tech-based business models such as lending, fintech and digital asset management. A shortage of quality staff to develop products and services in artificial intelligence (AI), blockchain and big data exists in the country.

Blockchain technology, in the simplest terms, is a shared record of transactions that anyone can see or read. A locking method is employed to prevent any tampering by one party, which helps to make blockchain secure, according to experts. — VNS