Application of Blockchain Technology in Developing Supply Chain Finance Products for Commercial Banks in Vietnam

Abstract

This paper provides a conceptual assessment of how blockchain technology could be applied to develop supply chain finance (SCF) products for commercial banks in Vietnam. Based on a systematic review of international and Vietnamese academic literature, policy documents, and selected case studies, the study maps blockchain’s core features decentralization, immutability, transparency and smart-contract programmability onto key SCF determinants such as information quality, process efficiency, trust, and legal enforceability. The analysis identifies potential benefits including improved real-time verification, reduced transaction costs, stronger fraud prevention, and enhanced traceability for ESG-linked finance. It also evaluates implementation constraints specific to Vietnam, notably uneven digital infrastructure, integration and governance costs, capacity gaps, and legal uncertainty. The paper closes with prioritized, feasibility-oriented recommendations for regulators, banking authorities and commercial banks, and proposes areas for empirical follow-up. By integrating information asymmetry and transaction cost perspectives with distributed-ledger trust concepts, the study provides a structured roadmap to inform pilot design and policy choices in emerging-market SCF.