Heading into 2026: Which traceability solution should Vietnamese businesses choose?

Before 2024, most businesses viewed QR codes as a "good enough" traceability solution, a code printed on packaging, linking to basic product information, serving marketing purposes and demonstrating that traceability existed. By 2026, however, market requirements have shifted at a fundamentally different level, driven by three key forces.

🔑 Read more: What is traceability? Why do we need product traceability?

First, major markets such as the EU, United States, Japan, China, and South Korea are uniformly requiring supply chain data that can be verified with digital signatures, under frameworks like EUDR, ESPR, FSMA 204, MoCRA, and GACC regulations. Traceability is no longer about "displaying information" — it must be verifiable data.

Second, Law No. 78/2025/QH15 has officially introduced risk classification and mandates traceability for high-risk product categories. Businesses in sectors such as pharmaceuticals, cosmetics, food, seafood, and chemicals must ensure their data can interconnect with national systems.

Third, consumer behavior has also changed. According to PwC 2024, Vietnamese consumers are willing to pay nearly 10% more for transparent products but will lose trust if traceability information is merely superficial.

In this context, investing in a traceability system is no longer a short-term choice but a 5–10 year operational commitment. Choosing the wrong architecture can lead to significant overhaul costs, export disruptions, and lost advantages from trade agreements. Understanding the core differences between the two models is therefore a mandatory step from the very beginning of solution selection.

7 core differences between blockchain traceability and traditional QR codes

1. Data source: One-way self-declaration vs. Multi-party digital signing

With traditional QR codes, scanning the code directs users to an information page declared by a single party, typically the manufacturer or distributor. All data is provided in a one-way model with no independent verification mechanism. When a partner asks "who inspected this batch?", the answer is usually a PDF certificate that is not linked to any digital signature or trusted authentication system.

Blockchain-based traceability, by contrast, operates on the principle of multi-party data validation. Each participant in the supply chain digitally signs their portion of the data: the manufacturer confirms the batch, the inspection authority confirms quality, the logistics provider confirms the transit process, and the retailer confirms the point of sale.

These confirmations are issued as Verifiable Credentials (VCs) under the W3C standard, linked to the digital identity (DID) of each participant in the electronic identity system. As a result, the data is no longer "self-declared" but becomes information verifiable by multiple independent parties.

🔑 Read more: Blockchain in traceability: Strategic pillar for Vietnam's digital economy

2. Data Integrity: Editable vs. Retroactively immutable

With traditional QR systems, data is stored on the company's own server. This means an administrator can modify information after labels have already been printed, including production dates, raw material sources, and batch details without consumers or partners being able to detect it. This is the core limitation of a centralized model: "data truth" depends entirely on one party.

Blockchain-based traceability, on the other hand, ensures data integrity through its chain-block structure. Each event is encrypted and linked to the previous block via a hash; altering past data would invalidate the entire subsequent chain and be detected by the system.

In permissioned blockchain models such as NDAChain, where multiple nodes operated by regulatory agencies, inspection bodies, and businesses all participate retroactive data modification is virtually impossible. As a result, traceability data is not only transparent but can also be used as reliable evidence in transactions, audits, or dealings with international partners.

🔑 Read more: National blockchain: The digital shield against counterfeit goods

3. Interoperability: Siloed data islands vs. GS1 and EBSI Trace4EU standards

Most traditional QR solutions in Vietnam currently operate on proprietary standards set by individual service providers. System A cannot read data from system B. Exporting to the EU requires separate documentation for TRACES, a separate set for the EU Central DPP Registry, and another set for Japanese partner systems. Every "data translation" step introduces costs and risks of inconsistency.

Blockchain-based traceability is designed from the ground up to align with international standards. UIDs (Unique Identifiers) following GS1 Digital Link are readable across 116 GS1 member countries. Events follow EPCIS 2.0 and Core Business Vocabulary, enabling direct compatibility with EBSI Trace4EU (14 EU countries), China's Blockchain-based Service Network (BSN), EU TRACES, and EU CATCH.

4. Ability to distinguish genuine labels from counterfeit copies

With traditional QR codes, the code is fundamentally just an image. Anyone with access to the print file can copy and paste it onto another product. This makes QR labels easy to replicate en masse on counterfeit goods, consumers who scan the code still see "correct" information, but have no way to verify whether the product is genuine. Protection at this point relies primarily on trust, not technology.

Blockchain-based traceability addresses this problem by adding a unique identifier (UID) tied to a digital identity (DID). Each physical product corresponds to a non-repeating UID; if the same UID appears on multiple products, the system automatically detects the anomaly and issues an alert.

🔑 Read more: What is a Unique Identifier (UID)? Why does each product need its own UID?

Additionally, UIDs can be integrated with physical technologies such as NFC chips or multi-layer security labels, preventing counterfeiting at the manufacturing stage itself. In high-value industries such as pharmaceuticals, premium cosmetics, and jewelry, the combination of micro QR codes and NFC creates a dual-layer authentication, enabling fast verification while effectively countering counterfeits.

The NDATrace platform implements a multi-level UID mechanism that distinguishes individual product units rather than just identifying by batch, upgrading traceability from "static data" to "dynamic data" and "authentic product verification."

🔑 Read more: Blockchain helps combat counterfeit cosmetics

5. Real-Time anomaly detection

With traditional QR systems, scanning a code only records visit statistics, there is virtually no behavior analysis capability. A code scanned thousands of times in a short period across multiple geographic locations a clear indicator of counterfeit activity is simply logged as normal. Anomaly detection relies mainly on manual consumer reports, making it reactive and delayed.

Blockchain-based traceability, when combined with AI and Big Data, enables real-time anomaly detection. Physically or operationally implausible scenarios such as the same UID appearing at two distant locations within a short timeframe are automatically flagged by the system.

🔑 Read more: Blockchain, AI and IoT: Three pillars reshaping the global supply chain

The system can also detect:

• Shipping routes inconsistent with customs data

• Inspection certificates that have been revoked or are invalid

• Storage conditions (such as cold-chain temperatures) exceeding permitted thresholds

All alerts are pushed directly to the business's and regulatory authority's monitoring dashboards, enabling a shift from "reactive post-audit" to "proactive surveillance" aligned with the direction set by Law No. 78/2025/QH15 in the new phase of quality management.

6. Level of international compliance (EUDR, CBAM, FSMA, MoCRA)

International regulations in the 2026–2027 period share one common requirement: they do not accept data declared by a single party. Instead, they require data that can be verified and cross-referenced by multiple parties.

Specifically:

• EUDR requires a Due Diligence Statement with precise geographic coordinates of raw material sourcing areas

• CBAM requires verified carbon emissions reporting

• FSMA 204 requires supply chain data traceability within 24 hours

• MoCRA requires facility registration, ingredient disclosure, and incident reporting

All of these demand digitally signed data that is independently verifiable and interoperable across multiple systems.

Traditional QR codes cannot meet these requirements, as their architecture only supports one-way data and lacks a multi-party digital signing mechanism. Blockchain-based traceability, by contrast, is designed from the outset to comply with international standards including ESPR, EUDR, CBAM, FSMA, and MoCRA all from the same data framework.

Platforms like NDATrace apply an "interoperability by design" principle businesses declare data once using a single UID, but can use it across multiple markets, reducing duplication and optimizing compliance costs.

7. Long-term total cost of ownership (TCO)

Traditional QR solutions typically have low upfront costs, sometimes just a few million VND to integrate with an ERP system. However, long-term costs escalate quickly as businesses scale and expand into new markets: separate documentation for each market (EU, US, Japan), legal consulting fees for each new regulation, crisis management costs when counterfeit goods emerge, and opportunity costs from extended customs clearance. Accumulated over 3–5 years, the real total cost often far exceeds the initial investment.

Blockchain-based traceability on a shared platform like NDATrace may require a higher initial investment (EPCIS API integration, DID registration, operational training), but enables long-term cost optimization. Businesses do not need to build proprietary systems, do not have to maintain separate documentation sets for each market, and avoid recurring costs for compliance modules.

With a "declare once, use everywhere" architecture, operating costs over 5–10 years are minimized, while the risk of system overhauls due to regulatory updates is significantly reduced. This is the key distinction between short-term cost and Total Cost of Ownership (TCO), the decisive factor in digital infrastructure investment decisions.

When to keep traditional QR codes and when blockchain is necessary

Not every product requires blockchain-based traceability. For low-risk products that are not health-sensitive, not exported, and not in mandatory traceability categories, businesses can continue using traditional QR codes for marketing, product information, and customer engagement purposes. In these cases, a blockchain investment may not be cost-optimal.

However, for the following four groups, blockchain-based traceability is a prerequisite:

• Businesses manufacturing or trading in high-risk products under Law 78/2025: pharmaceuticals, functional foods, medical devices, chemicals, premium cosmetics, large-scale processed foods.

• Businesses exporting to the EU, United States, Japan, South Korea, or China, especially in agricultural products, seafood, textiles, footwear, timber, electronics, steel, cement, and fertilizers.

• Businesses owning premium brands that need to protect brand value: jewelry, diamonds, luxury goods, wine, and high-end handcrafted decorative items.

• Cold-chain logistics providers, bonded warehouses, and e-commerce platforms requiring multi-party data interoperability.

🔑 Read more: Pharmaceutical traceability on the National Blockchain: A solution to Vietnam’s Counterfeit drug crisis in 2026

From Traditional QR to Blockchain

The biggest concern businesses have when transitioning from traditional QR codes to blockchain is having to "tear down and rebuild" the entire system. In practice, with NDATrace, this is not necessary.

NDATrace is designed with a backward-compatible integration architecture: businesses retain their existing ERP, MES, and WMS systems while connecting via a two-way EPCIS API to synchronize data. The system reads events from internal sources, assigns digital identities (DIDs), and issues Verifiable Credentials on the NDAChain blockchain.

🔑 Read more: National Blockchain – The “Digital Key” to protecting consumers

Importantly, existing QR codes are not replaced. Businesses continue using QR codes for marketing and customer engagement, while new UIDs following the GS1 Digital Link standard are deployed in parallel for supply chain traceability and legal compliance. This is a step-by-step upgrade approach that does not disrupt operations.

This approach allows businesses to transition from traditional QR to blockchain incrementally, with controlled risk and optimized costs without having to reinvest from scratch.

Frequently asked questions when comparing blockchain and traditional QR traceability

Does a business that has already invested in an existing QR system have to discard it?

No. NDATrace can run in parallel with the existing system. The old QR codes continue to be used for marketing and customer service as before, without any impact. At the same time, the system adds new UIDs following the GS1 Digital Link standard for supply chain traceability and compliance requirements. You do not need to "tear down and rebuild", you simply add a new layer on top.

Does blockchain traceability slow down the production process?

No, if deployed correctly. UID issuance and digital signing are fully automated, with each data entry taking only a few dozen milliseconds. For large-scale production lines processing thousands to tens of thousands of products per hour, the system operates normally without creating bottlenecks.

Is a dedicated blockchain server required?

No. With a shared infrastructure model like NDATrace, businesses use the existing platform directly without needing to build or operate their own blockchain. This significantly reduces both upfront investment and long-term operating costs.

Can data from old QR systems be migrated?

Yes. NDATrace supports data migration from common formats such as CSV and JSON, or via direct API connection. Historical data is preserved, augmented with identity information, and uploaded to the new system as initial events, ensuring no loss of history and no information gaps.

Making the right platform choice for a 5–10 year journey

The gap between blockchain-based traceability and traditional QR codes does not lie in the label itself, but in 7 layers of value beneath the surface: multi-party verified data, retroactively immutable integrity, international standards interoperability, genuine vs. counterfeit product differentiation, real-time anomaly detection, regulatory compliance, and long-term cost optimization.

In the context of Law No. 78/2025/QH15, Decision 1131/QĐ-TTg, and international requirements such as EUDR, CBAM, FSMA, and MoCRA all tightening simultaneously, Vietnamese businesses in 2026 face a long-term choice: choose the right foundation from the start, or accept the cost of system overhauls when regulations eventually force an upgrade.

NDATrace is a shared product identification, authentication, and traceability platform, operating on the NDAChain blockchain and the NDADID decentralized identity platform. Built to international standards including GS1 Digital Link, EPCIS 2.0, and W3C DID/VC, it enables businesses to declare data once and use it for both domestic and export markets.

👉 Get tailored solution advice for your industry and market at: https://www.ndatrace.vn/vi/. The NDATrace team will support your integration roadmap with existing systems and a pilot rollout on a strategic product line.