Vietnam Passes Landmark Digital Technology Law, Boosting AI, Semiconductor, and Crypto Sectors

Vietnam Passes Landmark Law Defining Digital Assets, Boosting AI and Chip Sectors - Decrypt

The new legislation aims to curb offshore migration by offering clear rules and incentives to keep crypto firms and talent in Vietnam. Vietnam's National Assembly overwhelmingly approved landmark legislation Saturday, legalizing digital assets and establishing sweeping incentives for semiconductor manufacturing, artificial intelligence development, and digital technology startups. The Law on Digital Technology Industry passed with 441 votes in favor out of 445 lawmakers present, making Vietnam one of the first countries to comprehensively regulate digital assets through dedicated legislation rather than traditional financial frameworks. The law, which takes effect January 1, 2026, defines digital assets as products "created, issued, transferred and authenticated using blockchain technology" with clear property rights under civil law. The move addresses a critical problem that has forced Vietnamese crypto and tech companies to relocate operations to Singapore and other jurisdictions with clearer regulations. The new legislation creates three main categories: virtual assets that can be used for exchange or investment purposes, crypto assets that use encryption technology to authenticate assets during creation, issuance, storage, and transfer, and other digital assets, per local media reports. Both virtual and crypto assets explicitly exclude securities, digital representations of fiat currency, and other financial instruments under existing civil and financial laws. In March, Prime Minister Pham Minh Chinh had directed the Ministry of Finance and the State Bank of Vietnam to finalize crypto regulation proposals by the end of the month as part of an ambitious 8% economic growth target, but no framework had yet materialized until now. Vietnam's crypto adoption has surged despite the legal uncertainty, with blockchain analytics firm Chainalysis ranking the country fifth globally for crypto adoption in 2024. Over $105 billion in blockchain market investments flowed into Vietnam during 2023-24, much of it through offshore structures that provided no benefit to the domestic economy. Beyond crypto regulation, the legislation underscores Vietnam's ambition to emerge as a regional technology powerhouse. The law sets a target of 150,000 digital technology enterprises by 2035, a major expansion from current levels, supported by unprecedented tax incentives and state investment. Companies developing semiconductors, AI systems, and digital infrastructure can receive corporate income tax rates as low as 10% for 15 years, along with exemptions from import duties and land rental fees. Large-scale projects investing over $80 million in data centers or $160 million in semiconductor facilities are eligible for additional "special" incentives, including a five-year personal income tax exemption for foreign experts. The law targets semiconductor development explicitly, establishing Vietnam's goal to "gradually become an essential link in the global supply chain."

Vietnam's Digital Assets Law Offers Subsidies To Build AI and Semiconductor Workforce

Vietnam's Digital Technology Industry Law aims to regulate crypto and provide government support for high-tech sectors.| Credit: Picture alliance / Getty Images. The Vietnamese National Assembly has passed a far-reaching "Digital Technology Industry" law that aims to regulate crypto and provide government support for high-tech sectors, including AI and semiconductors. With U.S. tariffs negatively impacting Vietnam's traditional manufacturing base, the government's focus on digital technology emphasizes innovation and employment. Digital Technology for Job Creation With many Vietnamese employers feeling the pressure of U.S. tariffs, Vietnam's communist government recently moved to shore up the economy with a string of Politburo Resolutions. Among these were Resolution No.57-NQ/TW, a breakthrough strategy for national science, technology, innovation, and digital transformation; and Resolution No.68-NQ/TW on private sector development. Both resolutions laid the groundwork for the Digital Industry Law adopted by the National Assembly on Saturday, June 14. The legislation places a strong emphasis on education and training, aiming to develop Vietnam's nascent digital sector. Meanwhile, companies in relevant sectors will be eligible for government subsidies to help cover the cost of hiring and training a digital workforce. Tax relief will also be provided for infrastructure projects with significant investment capital. Alongside provisions on human resource development and technology investment, the Digital Industry Law paves the way for Vietnam to regulate the crypto industry. Crypto in Vietnam Until now, crypto has existed outside of Vietnam's regulatory perimeter, with no established framework for licensing exchanges, for example. The central bank has generally taken a hard line against cryptocurrency, barring its use for payments and prohibiting banks from handling it. But under the Digital Industry Law, that could soon change. The government is now tasked with outlining the market structure, including the classification of different asset types, relevant business conditions and oversight mechanisms. Meanwhile, regulatory agencies have a new mandate to ensure market stability and prevent financial crime. Aligning With International Standards Vietnam's efforts to regulate the crypto sector reflect growing international pressure. In 2023, the Financial Action Task Force (FATF), a global anti-money laundering and counter-terrorist financing (AML/CTF) watchdog, placed Vietnam on its "gray list" of jurisdictions that fall short of global AML/CFT standards. A follow-up report in 2024 determined that Vietnam had largely failed to prevent the illicit use of crypto and condemned the country's lack of registration regime for virtual asset companies. However, Article 50 of the new law requires new measures to prevent and combat money laundering and terrorism. Removal from the FATF gray list would improve Vietnam's risk profile for foreign investors, and could help attract new sources of capital and ease trade restrictions.