EFGH and Vietnam Partner Launch VNL1 National Blockchain Platform for Product Traceability

Gate News message, April 17 — Embed Financial Group Holdings Pte Ltd (EFGH) and Digital Asset Protection HHP High-Tech Center JSC have established a joint venture to develop Vietnam’s national blockchain infrastructure. The agreements, signed in Ho Chi Minh City in mid-April 2026, outline plans to create VNL1, a national blockchain platform designed to support the country’s regulatory framework for product identification and traceability. The platform is expected to be mandated by Vietnam’s Ministry of Public Security by April 2027.

VNL1 is intended to address Vietnam’s growing counterfeit goods problem, which saw production and trade increase by more than 47% in the previous year. Currently, oversight is fragmented across multiple government ministries, resulting in inconsistent data management. Built as a Layer 2 solution on Ethereum, VNL1 is projected to process more than 1,000 transactions per second at minimal cost, with infrastructure hosted domestically within Vietnam.

The platform incorporates two core components: V-TRUST, designed to generate globally compatible product identification codes and record custody transfers using government-issued digital identifiers for tamper-resistant traceability accessible via QR codes or near-field communication; and V-STABLE, a sovereign digital settlement mechanism backed by the Vietnamese Dong with reserves approved by the State Bank of Vietnam, intended to facilitate real-time, low-cost financial transactions while preserving national monetary control.

Beyond VNL1, both parties signed a Comprehensive Strategic Partnership Framework Agreement establishing governance for six projects. The additional initiatives include an advanced fintech platform offering supply chain finance, embedded insurance, tokenization of real-world assets, and AI-driven credit analytics; a modular tourism kiosk system; a national commodity pricing and transparency platform; a sustainably powered data center and AI compute network; and a mixed-use development combining fintech, academic, and real estate components in Ho Chi Minh City’s international financial hub. Project-level statements of work are required within 180 days from mid-April 2026. A joint steering committee comprising senior executives from both organizations will meet quarterly to monitor progress across all initiatives. The framework agreement runs for an initial three-year period with annual renewals thereafter.

This collaboration represents EFGH’s first venture in Vietnam and its first national-scale project in Asia, positioning the company to expand similar digital finance and blockchain initiatives across other regions, including Africa where it already operates.