In our last blog post we explored a number of key factors as to why Vietnam is fast becoming a central hub for startups and small businesses and how this impacted our decision to situate our headquarters in Ho Chi Minh City.
Vietnam is one of the fastest growing economies in the world and has seen an increasing flow of capital from direct investments from neighbouring China. This investment has allowed the country to position themselves as a leading player in the manufacturing and export business and in turn has seen a steady growth of GDP YoY. This growth of GDP has allowed for better living conditions, a higher quality of education and more importantly a tech savvy young demographic.
By 2020 it is expected that 51.3 of the 97 million people living there be mobile internet users. This impressive percentage of the populace being exposed to the internet economy has meant that Vietnam is the fastest growing country in terms of growth for mobile payments. It was reported in 2018 that 65% of Vietnam’s population made payments via their apps at least once.
With this booming economy and ideal conditions for businesses to thrive in the technology sector it is therefore an extremely surreal juxtaposition to read that a Vietnamese man has just paid for half of a new house with gold bars.
Bloomberg recently released the story of Tran Van Nhan, a 47 year old shopkeeper who has just bought a $138,000 condo in Hanoi using half cash and half gold bars. Tran stated that “We are so used to buying things with cash and gold.” and that “the flat’s owner didn’t want to do a bank transfer”.
The use of cash and precious metals for purchases is commonplace in Vietnam which is much to the government’s frustration. Hanoi-based economist Nguyen Tri Hieu, senior adviser to National Citizen Bank, argues “It’s holding Vietnam back. The government recognizes that to integrate Vietnam into the world economy, its cash-based economy has to change.”
The government are sighting 2019 as the year for change as in January they have put a deadline in place for public services such as schools and hospitals to stop accepting cash by December. They are also encouraging more Vietnamese people to use digital payment services such as QR codes and e-commerce is being heavily promoted in malls and supermarkets.
At RedFOX Labs we have spent the last year meticulously planning every detail of our project and fine tuning our strategy to give us a powerful advantage in the market.
With only 31% of Vietnamese adults having bank accounts but 84% having smartphones and 42.1 million people having access to mobile internet and digital payment methods, we believe that RedFOX Labs are perfectly situated in this environment which is ripe for the introduction of products powered by the blockchain.
The increasing growth of the mobile payments industry and the lagging financial infrastructure means that we can distribute products that require a method of mobile payment without the user even needing a bank account. These payments are then stored on an immutable ledger, the RFOX blockchain, which will allow for efficient and secure transactions whilst having the huge advantage of being protected by Komodo’s dPoW technology.
Our vision is to have a RedFOX Labs payment top up card in every mall and supermarket in Vietnam where people can scan their QR Code and immediately have access to use their RFOX coins as they please.
We believe that with our knowledge, expertise and hunger to succeed in this industry, we are well positioned to bring Crypto adoption to the masses and Vietnam is the cornerstone to our success.
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