Blockchain technology benefits SMEs, developing countries: report
Blockchain could bring a commercial benefit of US$1 trillion, mostly for SMEs as well as for some newly-emerged markets which suffer most from a lack of access to credit and have ample room to grow trade, including Vietnam, according to a new report jointly released by Bain & Company and the World Economic Forum (WEF).
The report further said blockchain and its most popular application of distributed ledger technology (DLT) have narrowed the trade gap around the globe and made impossible trade transactions possible.
The positive influences of the DLT have been shown most obviously in the SMEs and newly-emerged markets, it said.
Blockchain technology can promote the supply chain and capital market, creating conditions for the strengthening of transparency in business.
The global trade finance gap is currently standing at US$1.5 trillion and estimated to grow to US$2.4 trillion by 2025, as calculated by the Asian Development Bank.
However, this missing funding can be reduced by US$1 trillion if blockchain technology is applied more broadly.
Wolfgang Lehmacher, head of Supply Chain and Transport Industries at the WEF, said that the application of blockchain-based solutions will bring about many benefits for the SMEs from developing countries, rather than current measures such as removing tariff barriers and closing trade transactions.
Vice President Gerry Mattios of Bain & Company said that governments and economic organisations should provide certain technology support to the SMEs, thus helping them form a digital foundation serving their operation and reduce risks.
Speaking to Vietnam News Agency’s reporter on how Vietnamese SMEs can make full use of advantages in technology amidst modest capital access, Mattios said that difficulties in capital calling is common among SMEs and startup firms around the world.
However, the good news is that many funds have been founded to support SMEs in reform and renovation process. Yet in order to give choices to the firms, governments and trade organisations must play a significant role in seeking specific roadmaps for their development in the digital world, he said.
Mattios also stressed the need for governments and entities of the economy to work together to implement the roadmap.