On 14 June 2025, the National Assembly of Vietnam passed the Law on Digital Technology Industry (the “Law”), marking a significant milestone in the country’s digital transformation journey. Effective from 1 January 2026, the Law introduces Vietnam’s first comprehensive legal framework for digital assets and sets forth core principles for artificial intelligence (AI) governance.
This legislative development demonstrates Vietnam’s commitment to fostering innovation while ensuring regulatory oversight in line with international standards. Below is a summary of the Law’s key provisions on AI and digital assets and their implications for businesses and stakeholders.
1. Overview of the Law
The Law governs the development, deployment, and regulation of digital technologies in Vietnam. It covers a broad range of areas including digital infrastructure, data governance, cybersecurity, and emerging technologies. Key objectives include:
- Promoting research and development (R&D) in AI, blockchain, semiconductors, and other digital technologies;
- Establishing a legal regime for digital and coded assets;
- Supporting startups and technology enterprises through incentives; and
- Enhancing Vietnam’s global competitiveness in the digital economy.
Chapters IV and V of the Law – focused on Artificial Intelligence and Digital Assets, respectively – are especially notable for businesses operating in these sectors.
2. Key Provisions on Artificial Intelligence (AI)
2.1 Definition and Scope
The Law defines AI as a machine-based system capable of learning from data to generate decisions, predictions, or content that affects physical or digital environments. AI systems are considered digital technology products comprising software, hardware, and data.
2.2 Principles of AI Governance
The Law establishes foundational principles for the safe and ethical use of AI:
- Transparency: AI systems must be transparent about their functionality and decision-making rationale.
- Accountability: Developers and operators bear responsibility for legal and ethical compliance.
- Safety and Security: AI must be designed to prevent harm and misuse.
- Non-Discrimination: AI must not exhibit biases or discriminatory behavior.
2.3 Regulatory Requirements
- Licensing of High-Risk AI: Government approval is required for AI applications in sensitive sectors such as critical infrastructure and law enforcement.
- Data Compliance: AI developers must adhere to Vietnam’s data protection laws.
- R&D Incentives: Tax relief and public funding are available for AI-related research and collaboration.
2.4 Implications for Business
The prospect of generous government incentives may create strong opportunities for R&D and commercialization of AI systems in Vietnam. On the other hand, businesses developing and operating AI systems will need to develop compliance protocols, particularly for high-risk use cases.
3. Key Provisions on Digital Assets
3.1 Definition and Classification
The Law defines a digital asset as a property right under the Civil Code, expressed in digital form and authenticated via digital technologies. It recognizes two primary categories:
- Virtual Assets: Digitally transferable representations of value (excluding coded assets); and
- Coded Assets: Cryptographically secured blockchain-based assets, including cryptocurrencies.
Interestingly, the Law expressly excludes securities, digital forms of fiat currency, and other financial assets as prescribed by civil and financial laws from the definition of both virtual and coded assets. But a third category of “other assets” leaves room for future treatment of such financial assets as digital assets.
3.2 Regulatory Framework
- Civil Law Protections: Digital assets are granted full legal recognition as property under Vietnam’s Civil Code.
- AML/CFT Compliance: Businesses dealing with digital assets must comply with anti-money laundering (AML) and counter-financing of terrorism (CFT) obligations aligned with FATF standards.
- Licensing Requirements: Entities providing digital asset services must meet business conditions set by the Government.
- Tax Incentives: The Law introduces preferential tax treatment for digital asset startups; details will be provided in forthcoming regulations.
3.3 Implications for Business
The recognition of digital assets under civil law provides more legal certainty for market participants. While regulatory compliance will require investment, especially in AML/CFT measures, and there are still many open questions to be addressed through regulation, Vietnam is positioning itself as a digital asset-friendly jurisdiction with favorable policies for innovation.
4. Outlook and Next Steps
The Law will take effect on 1 January 2026. It represents a foundational shift for Vietnam’s digital regulatory landscape. Its key impacts include:
- For AI developers: A framework that encourages growth, balanced by safeguards for public trust;
- For digital asset stakeholders: Legal recognition and the prospect of more structured compliance requirements could bolster market confidence; and
- For the national economy: An enabling environment, including state funding and concentrated digital technology zones, to attract foreign investment and nurture high-tech job creation.
The Government will issue detailed implementing regulations, clarifying, among others, issues in relation to AI and digital assets. Businesses should closely monitor these developments and seek legal counsel to ensure readiness.
Conclusion
Vietnam’s new Law on Digital Technology Industry signals a decisive step toward a secure, innovation-driven digital economy. By establishing basic principles for AI and digital assets, the Law not only fills longstanding legal gaps but also takes a step towards aligning Vietnam’s regulatory architecture with global trends. While further guidance is expected, the Law lays a more robust foundation for the country’s digital future.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
