Vietnam CBDC Tracker

Vietnam, or the Socialist Republic of Vietnam, is currently in the research phase of its central bank digital currency (CBDC) development. The State Bank of Vietnam was instructed by the prime minister in 2021 to pilot a CBDC. However, there are no public reports currently available that suggest the pilot has started. Therefore, Vietnam is in the research phase and expected to move to the pilot phase in the near future.

CBDC History and Development

In July 2020, the State Bank of Vietnam published a paper that said, “In general, the key point to note when issuing a central bank digital currency is the need for an open approach, in line with international standards, while still ensuring risk control.”

The Prime Minister of Vietnam instructed the State Bank of Vietnam to research, develop, and pilot a CBDC based on blockchain technology in June 2021. This instruction came amidst a broader push to digitize government services.

State Bank of Vietnam governor Nguyen Thi Hong emphasized “the emergence of a central bank digital currency (CBDC) for the central bank's monetary policy management” at a meeting in December 2021.

In February 2022, the State Bank of Vietnam held a conference to discuss CBDCs in emerging market economies. According to the central bank, “Many studies suggest that the birth of CBDC aims to address the requirements for the strong development of the digital economy such as promoting financial inclusion, innovation, integration, expansion of the digital ecosystem and cross-border payments, etc.”

World Bank official Zafer Mustafaoglu met with State Bank of Vietnam deputy governor Pham Thanh Ha in April 2022. Among the topics discussed, it was noted that the World Bank would support Vietnam’s efforts to build a CBDC.

In May 2022, State Bank of Vietnam deputy governor Pham Tien Dzung held a meeting to discuss CBDC development. It was noted that more work is needed to assess the necessity of a CBDC and evaluate different models.

The State Bank of Vietnam published a report in September 2022 that said, “Vietnam needs to accelerate the research process, complete the legal framework for CBDC, and take advantage of the strengths of technology as a foundation to activate the use of this currency.”

The State Bank of Vietnam published another report in October 2022. This report said the central bank needed “to have a plan to build and train a team of experts along with national programs” to build a CBDC.

In December 2022, the State Bank of Vietnam published an outline of the CBDC research conducted between September 2020 and September 2021. The work cost 228 million dongs ($8,781). A team of eight studied the theory behind issuing a CBDC to propose a model most suitable for Vietnam.

The International Monetary Fund provided a training course on CBDC to officials at the State Bank of Vietnam in March 2023. The International Monetary Fund “focused on sharing conceptual issues related to CBDC such as the development situation of CBDC in the world, CBDC classification and policy objectives, CBDC models, risks and management methods to minimize risks and enhance the value of CBDC, legal aspects and policy implications on financial and monetary stability as well as CBDC design considerations.”

In November 2023, the State Bank of Vietnam published a paper that explored the technical considerations for a Vietnamese CBDC. The paper concluded that the central bank must consider technology, security, privacy, scalability, and interoperability as it continues to learn from the experiences of other central banks.

The State Bank of Vietnam published a paper on the benefits and risks of CBDCs in January 2024. The paper presents financial inclusion, monetary sovereignty, financial stability, financial surveillance, removing cash, and promoting innovating as benefits. The risks include system complexity, upfront costs, and disintermediation.

In August 2024, the State Bank of Vietnam published a paper exploring how a CBDC might impact financial inclusion and monetary policy effectiveness.

In September 2024, the State Bank of Vietnam published a paper on how a CBDC might impact the central bank’s balance sheet.

In October 2024, the State Bank of Vietnam published a report that briefly outlined how the central bank had been researching CBDCs. Activities included participating in events, observing Project mBridge, and studying the activity of other central banks. The central bank also published a paper in October that briefly recommended a CBDC to “help reduce pressure on the banking system and enhance the competitiveness of the financial system.”

In December 2024, the State Bank of Vietnam published a paper on the CBDC experience in The Bahamas. The paper concluded that Vietnam develop clear goals, assess the state of technology adoption, develop strict data policies, pilot ideas, and raise public awareness.

Human Rights and Civil Liberties Concerns

Vietnam earned a 19 out of 100 in Freedom House’s 2023 Freedom in the World report. Problems within the country are widespread. However, the concerns most relevant to the issuance or use of a CBDC are the restrictions on opposition and association as well as the presence of persistent corruption. A CBDC could worsen both issues.

“A crackdown on both online and offline dissent raised concerns about a new wave of repression against civil society,” according to Amnesty International. In fact, although the constitution recognizes freedom of the press, Freedom House reported that “journalists and bloggers are constrained by numerous repressive laws and decrees” such as where the “criminal code prohibits speech that is critical of the government.” This treatment has also been extended to restrictions on freedom of association. Freedom House further reported that “Unregistered and unrecognized religious groups face routine harassment, including violence, criminal charges, and property damage” and “human rights organizations are generally banned, and those who engage in any advocacy that the authorities perceive as hostile risk imprisonment.” Unfortunately, a CBDC could be used as another tool in this effort. Across the world, governments have often turned to freezing and seizing the money of activists, political rivals, and protestors to undermine the opposition. A CBDC would make such initiatives easier by allowing governments to take direct control of each citizen’s finances.

Corruption also remains a major issue. There has been an effort in the government to crack down on this behavior, but Freedom House reports that “enforcement of anticorruption laws is often selective and linked to political rivalries. Many top officials who have been detained or jailed belonged to a different [political faction.]” In 2024, reports emerged that “15 former central bank officials were accused of involvement in a $12 billion fraud.” The existence of pervasive corruption is a major concern with CBDCs because it calls into question any promises that might be made by the government to limit surveillance, control, or other risks of CBDCs. Furthermore, the existence of corruption calls into question whether CBDC policies might be designed to exert political favoritism through subsidies, price controls, or other targeted restrictions.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.