In a landmark move that places Vietnam at the forefront of digital governance, the country has become the first in the world to pass a dedicated law for the digital technology industry. The law, approved by the National Assembly on June 14, 2025, is set to take effect on January 1, 2026, and aims to position Vietnam as a global leader in technology innovation, AI development, and digital sovereignty.
What’s in the Law?
The Law on Digital Technology Industry outlines a comprehensive framework for promoting innovation, regulating AI, encouraging foreign investment, and developing a self-sufficient digital economy. It introduces mechanisms to:
- Boost domestic innovation through tax incentives, funding support, and government-backed infrastructure for tech startups and SMEs.
- Strengthen the local digital workforce, with the goal of fostering 150,000 digital tech enterprises by 2035.
- Attract international talent and capital, offering visa waivers and tax relief to digital experts and foreign firms.
- Regulate emerging technologies, including AI, semiconductors, and digital assets like cryptocurrencies.
- Ensure ethical technology development, particularly by mandating human oversight in AI systems and aligning with international standards like those of the Financial Action Task Force (FATF).
Why It Matters?
In a world increasingly defined by digital capability and cyber competition, Vietnam’s approach is bold. Rather than relying on fragmented, reactive policies, the country has opted for a proactive and strategic legal foundation. Unlike Western nations that often separate data protection, AI governance, and crypto regulation into different frameworks, Vietnam’s new law consolidates all major digital domains into a single legal instrument. This is a clear signal: Vietnam is not just participating in the digital economy rather it intends to shape it.
Vietnam’s Bet on “Digital Sovereignty”
Vietnam’s digital law also reflects a rising trend among emerging economies to assert technological sovereignty. The emphasis on “Make in Vietnam” policies, domestic semiconductor manufacturing, and AI infrastructure suggests a desire to reduce dependence on foreign technology giants and data governance systems. It’s a notable divergence from the Silicon Valley-centric model that has dominated tech policy over the past two decades.
The Global Context
While the European Union’s AI Act and South Korea’s AI ethics charter have drawn international headlines, neither country has passed a unified legal framework that spans AI, digital infrastructure, talent mobility, and industry incentives. As global debates around AI safety, digital ethics, and algorithmic accountability heat up, Vietnam’s legislation offers a new model for how states—especially those in the Global South—can chart their own course.
What Comes Next?
The law will be officially enforced starting January 1, 2026. In the interim, the Vietnamese government will roll out detailed implementing decrees and guidelines, including criteria for AI classification, digital asset licensing, and tech investment incentives. Businesses, regulators, and digital entrepreneurs across Southeast Asia and beyond will be watching closely.
Thus, in passing the world’s first law solely focused on the digital technology industry, Vietnam has made more than just a policy move. It has declared its intention to be a digital power in its own right. And as the global race for AI and digital infrastructure leadership accelerates, the rest of the world would do well to take note.
References:
- Tuổi Trẻ News. (2025, June 14). Vietnam pioneers world’s first dedicated law on digital technology industry. Tuổi Trẻ Online. https://news.tuoitre.vn/vietnam-pioneers-worlds-first-dedicated-law-on-digital-technology-industry-103250615152859036.htm
- (2025, June 15). Law on Digital Technology Industry approved. VnEconomy. https://vneconomy.vn/law-on-digital-technology-industry-approved.htm
- Financial Action Task Force. (2023). Updated Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers. https://www.fatf-gafi.org/en/publications/Fatfrecommendations/guidance-rba-virtual-assets.html
- European Commission. (2024). EU AI Act: Harmonised rules on artificial intelligence. https://digital-strategy.ec.europa.eu/en/policies/european-approach-artificial-intelligence