Vietnam’s First Legal Framework for AI and Digital Assets

Application

The DTI Law applies widely to both Vietnamese and foreign agencies, organizations, and individuals involved in or connected to digital technology activities within Vietnam. This law will take effect on January 1, 2026, while certain provision related to the investment incentives and support policy for digital technology activities have commenced from July 1, 2025.

Provision

Key Definitions

DTI Law introduces, for the first time in Vietnam, a comprehensive set of legal definitions for key components of the digital economy. Among other things:

• Digital technology: a set of scientific methods, technological processes, and technical tools used for production, transmission, collection, processing, storage, and exchange of digital information and data, as well as the digitalization of the real world.
• The digital technology industry: a techno-economic sector that combines science, technology, innovation, and digital transformation to create digital technology products and services. It represents a subsequent development step of the information technology industry.
• Semiconductor industry: an industry that implements activities such as research, development, design, production, packaging, testing of semiconductor products, and production of devices, machinery, and tools in service of these activities. The semiconductor industry plays an essential and foundational role in the digital technology industry.
• AI systems: machine-based systems designed to operate with varying levels of autonomy and adaptability after implementation for achieving clear or implicit objectives. These systems infer from their input data to generate predictions, contents, recommendations, and decisions that may affect the physical or digital environment. AI systems are digital technology products that integrate hardware, software, and data.

Support Policies for Digital Technology Industry

The law provides comprehensive support policies for technology enterprises, including the development of shared digital infrastructure, encouragement of innovative startups, and talent training.

• Financial incentives
  According to the law, activities in the digital technology industry, such as the production of digital technology products and the provision of digital technology services, are classified under sectors and professions that qualify for investment incentives. Specific areas, including the manufacturing of key digital technology products, software production, artificial intelligence development, research and development, design, production, packaging, and testing of semiconductor products, are eligible for special investment incentives. This regulation lays the groundwork for the digital technology sectors to benefit from various incentives and support in alignment with the provisions of investment laws, tax regulations, land use laws, and other relevant legislation. These benefits may include reductions in corporate income tax (CIT) for several years, and decreased land lease rates.
  Although not yet officially announced, representatives from the Ministry of Science and Technology have indicated in press conferences that digital technology enterprises could receive unprecedented incentives. These may include:
  • A reduced CIT rate of 5% for projects with an investment capital of 6,000 billion VND or more, applicable for a period of 37 years.
  • A tax exemption for the first 6 years, followed by a 50% reduction for the next 13 years.
  • Land lease reductions of up to 22 years, with a 75% reduction for the remaining years.
  • Companies may calculate their CIT by recognizing R&D expenses at up to 200% of actual costs for calculation of CIT.
  • Direct state support for the costs of investment in factory construction, technical infrastructure, equipment, and machinery from local budgets’ development investment expenditures.
  Concentrated digital technology zones and innovative startup projects will receive incentives similar to those provided to areas facing significant challenges.
• Human resource incentives
  The law introduces comprehensive solutions and policies aimed at workforce development. High-quality digital technology professionals will be exempt from personal income tax for the first 5 years of their employment, offering a significant financial incentive for long-term commitment. Additionally, foreign experts and their families will receive 5-year visas and will not be required to obtain work permits. This aims to simplify administrative procedures and attract international talent to promote technology transfer and knowledge sharing.
• Infrastructure development support
  The state shall prioritize budget allocation for investments in the construction of digital technology industry infrastructure, including data centers, innovation labs, and dedicated technology zones. These facilities will be designed for shared use, allowing private enterprises to lease them for their research and operations.
• Market access incentives
  To foster a stable and sustainable market for domestic digital technology enterprises, the law offers significant market access incentives. Specifically, the state will place direct orders for the development of strategic technologies such as AI, big data, and blockchain, and will prioritize the procurement of Vietnamese digital products and services for projects funded by the state budget. Furthermore, the DTI Law aims to support Vietnamese digital technology enterprises in their expansion into global markets. Enterprises are encouraged to establish representative offices and branches abroad, which will help them increase international revenue and enhance brand recognition.

Sandbox Mechanism

The law allows businesses to test new digital technology products and services in a controlled and supervised setting. The organizations, businesses, and individuals involved in the test will be exempt from liability. By easing some legal requirements for a limited time, the law encourages experimentation and helps develop new technologies. It also lets policymakers understand the potential effects and improve regulations before larger-scale implementation, creating a more flexible environment that supports.

Legal Framework for AI Systems

The text emphasizes not only the importance of policies that encourage the development and application of AI but also the need for monitoring and risk management of AI systems.

The DTI Law establishes criteria for identifying high-risk and high-impact AI systems. High-risk AI systems are those that, in specific use cases, could potentially cause serious harm to human health, fundamental rights, public interests, or social order and safety. On the other hand, high-impact AI systems are characterized by their large multifunctional use, a large user base, a large number of parameters, and a large volume of data. However, the law does not provide clear quantitative thresholds for what constitutes “large” in terms of users, parameters, or data.

To ensure the safe and responsible use of AI systems, both categories must meet strict requirements for monitoring, technical standards, transparency, data governance, and cybersecurity. The government will outline these standards for each sector, and businesses must implement appropriate measures when using AI in their operations.

AI systems that interact directly with humans must clearly notify users that they are engaging with an AI system, unless the interaction is so obvious to the user that it is not necessary to do so. Additionally, digital technology products generated by AI—classified under a list issued by the Ministry of Science and Technology—must carry identifiable markers that can be recognized by users or machines. The Ministry is also responsible for issuing this list and overseeing compliance with these identification requirements.

Legal foundation of digital assets

For the first time in Vietnam’s legal system, digital assets are recognized as a legitimate type of asset, marking a significant advancement in establishing a legal framework for the digital economy. The DTI Law specifically states that “digital assets are assets as defined under the Civil Code,” which means that digital assets can now be legally owned, transferred, inherited, and are protected under civil rights in Vietnam.

The law differentiates between various categories of digital assets:

• Virtual assets (“tài sản ảo”) refer to digitally stored units that can be used for exchange or investment purposes.
• Crypto assets (“tài sản mã hóa”) are a subset of digital assets that uses encryption technology or other similar digital technology to authenticate the asset during its creation, issuance, storage, and transfer.

It is important to note that, under this law, digital assets do not include securities, digital forms of fiat money, and other financial assets as prescribed by civil laws and financial laws.

The law authorizes the government to develop regulatory mechanisms for digital asset-related activities. This is part of Vietnam’s effort to enhance transparency and comply with international anti-money laundering standards, with the goal of being removed from the Financial Action Task Force’s (FATF) Grey List.

In this regard, along with the recognition of crypto assets in the law, on September 9, 2025 the Government of Vietnam issued Resolution No. 05/2025/NQ-CP, which took immediate effect, launching a five-year sandbox mechanism for the crypto asset market. This resolution establishes regulations for the pilot implementation of offering, issuing, trading, and providing services related to crypto assets. Among other provisions:

• Offering and issuance of crypto assets:
  • The issuer of crypto assets must be a Vietnamese enterprise, registered as either a limited liability company or a joint-stock company under the Law on Enterprises.
  • Crypto assets must be issued based on underlying real assets, excluding securities and fiat currencies.
  • Crypto assets may only be offered and issued to foreign investors.
  • Crypto assets may only be traded among foreign investors through crypto asset service providers, that meet certain requirements regarding charter capital, ownership ratio, and personnel, and are licensed by the Ministry of Finance
• Trading of crypto assets
  • Domestic investors who currently hold crypto assets, and foreign investors, are allowed to open accounts at licensed crypto asset service providers to custody, buy, and sell crypto assets in Vietnam.
  • 6 months after licensing the first crypto asset service provider, domestic investors engaging in crypto asset transactions outside of licensed providers may face administrative penalties or criminal liability.
• Transaction currency
  • All offerings, issuances, and transactions must be conducted in Vietnamese Dong (VND).
  • Foreign investors must open a dedicated VND payment account at a bank authorized to conduct foreign exchange activities in Vietnam to carry out related transactions.

Conclusion

The DTI Law is an important step in Vietnam’s effort to become a leading digital economy. It shows Vietnam’s goal to be a regional technology hub, with the digital technology industry as a key part of the economy instead of just a support system. This law helps promote innovation and sustainable growth in the digital sector. However, it is just the start. To be truly effective, the government still needs to provide more detailed regulations and clear guidance.