Blockchain creates transparency in international trade

April 06, 2023 | 11:35
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Realising the importance of blockchain in global trade, the Vietnam Blockchain Association (VBA) has organised the seminar and workshop Blockchain Technology: Instantiate the International Commerce Process within the framework of the Vietnam Expo 2023 programme.

As the market economy has become increasingly open, the beginning of the 4.0 era has helped international trade become more vibrant than ever. Technology helps narrow the gap, but brings with it new difficulties with communication, data storage, paperwork handling, inconsistencies in standards, and the trade policies of different countries.

The World Trade Organization (WTO) has predicted that global merchandise trade volumes will drop by 1 per cent in 2023, hit hard by fluctuations related to rising energy prices, inflation, and monetary policy. Therefore, businesses need to consider cutting their international trade costs in 2023.

Blockchain creates transparency in international trade
Hoang Van Huay, chairman of the Vietnam Blockchain Association

Hoang Van Huay, chairman of the VBA shared, “Blockchain is a technology that acts as a decentralised digital ledger that is tamper-resistant and allows users to store and share information transparently between parties, making it an effective tool for the development of the digital economy. The VBA – established in May 2022 – is a legitimate legal organisation for this technology in Vietnam."

"The VBA identifies itself as a bridge between enterprises in the industry and regulatory agencies that listens to suggestions and creates a legal corridor for blockchain application in the nation. International connections through various activities are widely implemented, starting with The Connect event in Thailand on March 15. Following that, there will be a series of international networking events with organizations in the US, Singapore, South Korea, the Philippines, and Switzerland in 2023,” he added.

Blockchain technology is expected to solve some of the complexity of international trade. The WTO pointed out that it could cut trade costs by automating manual processes, specifically by managing and encrypting foreign trade documents and letters of credit, speeding up payment operations, and automatically executing agreements through the help of smart contracts stored on the blockchain.

With the tamper-proof nature of blockchain, any type of modification must be authorised and agreed to by both parties. The reduction in trade costs result from the increased transparency, as well as the ability to automate processes such as financial intermediation and business coordination.

Instead of choosing familiar topics such as import-export promotion and the digital era, Vietnam Expo 2023 will offer practical applications and solutions for Vietnamese businesses.

In addition to the display of products and services from both domestic and international players, blockchain technology will be prioritised to highlight its potential as an optimal technology for commerce.

Blockchain creates transparency in international trade

Nguyen Thu Hong, deputy general director of Exhibition and Event Organisation at Vinexad and representative of the Vietnam Expo Organising Committee said, "In the near future, we will work with the VBA to help businesses apply this technology in the most optimal way."

The 32nd Vietnam International Trade Fair, Vietnam Expo 2023, is being held from April 5-8 at the Hanoi International Exhibition Centre.

With the participation of more than 500 businesses from 15 countries and territories, Vietnam Expo promises to help Vietnamese companies showcase their products across 600 booths. The event also features specialised seminars, including one by the VBA, aimed at connecting buyers and suppliers.

Vietnam Expo 2023 attracts international visitors and the local business community through the information channels of ministries, departments, branches, diplomatic agencies, trade promotion organisations, and major industry associations.

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By Thai An

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