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August 25, 2025

Vietnam’s Digital Tech Industry Law: Building the Future of AI, Chips, and Digital Assets

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Artificial intelligence (AI), semiconductors, and digital assets are considered critical drivers of Vietnam’s future economic growth and are fundamental to the nation’s digital transformation targets. These sectors form the core of Vietnam’s strategy to build a robust, globally competitive digital economy. This strategic direction gained substantial momentum with the issuance of the Law on Digital Technology Industry (DTI Law) on June 14, 2025.

The DTI Law was designed to attract investment, stimulate innovation, cultivate high-quality human resources, and ensure the responsible, secure, and sustainable growth of digital technologies like AI and digital assets, harmonizing Vietnam’s digital industry with international standards while safeguarding public interests and national security.

Several key provisions of the DTI Law took effect on July 1, 2025, and the law will become fully effective on January 1, 2026. The government is delegated to provide further necessary guidelines and details for implementation of the law.

Artificial Intelligence (AI): Principle-Driven and Risk-Based Regulations

Under the DTI Law, there are seven core principles guiding the development, provision, and use of AI which are applicable to AI developers, providers and deployers. These principles favor values-based governance over purely technical prescriptions, and include the following:

  • Taking a human-centered approach that upholds ethical values, inclusivity, flexibility, equality, and non-discrimination.
  • Ensuring transparency, accountability, and explainability, with AI systems remaining under human control.
  • Maintaining cybersecurity and system safety.
  • Adherence to data protection and privacy regulations.
  • Having the ability to control AI algorithms and models.
  • Effective risk management throughout the entire lifecycle of AI systems.
  • Compliance with consumer protection laws and other relevant legal frameworks.

AI system management follows a risk-based approach, with the law categorizing systems into high-risk, high-impact, and other groups. High-risk AI systems are those that, in certain applications, may pose significant threats or harm to individuals or the public interest while high-impact systems are designed for multi-purpose use, involving a large user base, extensive parameters, and massive data processing capabilities.

Both high-risk and high-impact systems are subject to stringent regulatory requirements, including technical requirements, transparency in data storage and disclosure, data governance, monitoring and inspection, cybersecurity, and other applicable obligations. Enterprises developing or deploying such systems should therefore begin mapping their AI inventories and preparing documented risk assessments to accelerate future compliance.

AI systems that directly interact with humans must clearly notify their users of their AI aspects. Additionally, digital technology products generated by AI, if listed in the official list issued by the Minister of Science and Technology, must carry identifiable markers detectable by either users or machines.

Semiconductors: Building a Competitive and Vertically Integrated Ecosystem

Vietnam’s semiconductor industry development is guided by four key principles:

  • Focusing on breakthrough semiconductor chip development across sectors, closely linked to the global semiconductor ecosystem (research, design, manufacturing, packaging, testing).
  • Aligning semiconductor development with the electronics industry, with a focus on specialized electronic devices in various sectors.
  • Ensuring sufficient and high-quality human resources for the semiconductor industry.
  • Promoting foreign investment and mobilizing both domestic and international resources to master semiconductor chip technology, design, and production.

The government will establish a semiconductor development strategy based on these four principles and aligned with Vietnam’s socio-economic strategies and management needs. Enterprises are encouraged to closely follow up the country’s semiconductor development strategy to identify potential opportunities for its benefits.

Digital Assets: Legally Recognized for the First Time

For the first time in Vietnamese legislation, the DTI Law recognizes digital assets as property expressed in data form and created, issued, stored, or transferred through digital technologies. The law further classifies them into: (i) virtual assets (excluding securities, digital fiat currency, and other regulated financial assets); (ii) crypto assets (excluding securities, digital fiat currency, and other regulated financial assets), and (iii) other digital assets.

The management of digital assets encompasses several aspects, including establishing and transferring ownership; regulating rights and obligations of involved parties; ensuring cybersecurity, preventing money laundering and terrorist financing; inspection and enforcement; and conditions for businesses providing services crypto asset services.

Incentives for AI and Semiconductor Industries

Vietnam’s DTI Law offers a robust package of investment incentives for projects in AI system development, AI data centers, and semiconductor chip R&D and production, including design, packaging, and testing. These projects are classified as specially prioritized investment sectors and benefit from preferential treatment in areas such as taxation, land use rights, and access to other legal benefits. The government may also provide direct financial support for infrastructure, equipment, and factory construction through local development budgets. Enterprises in these sectors are eligible for customs-related advantages to facilitate import and export activities.

Innovative startups in AI and semiconductors are similarly prioritized, qualifying for incentives under investment, tax, and land laws, and may receive direct funding for workforce training, talent acquisition, R&D, pilot production, consulting, and technology upgrades. The law introduces additional special mechanisms for the semiconductor industry, extending incentives to projects producing materials, machinery, and components that directly support chip manufacturing. Importation of used equipment for semiconductor production is allowed if it meets technical criteria set by the Ministry of Science and Technology, with enterprises required to self-certify compliance. Finally, the law provides targeted support for businesses participating in the semiconductor supply chain, further strengthening Vietnam’s position as a competitive hub for digital technology investment.

Outlook

Although the DTI Law mainly provides a framework and policy-oriented provisions, with specific regulations still needing to be set out in future decrees and circulars, it is essential for businesses to stay ahead of emerging policy trends and regulatory directions shaping the development of Vietnam’s strategic digital technology sectors. Understanding these directions can help businesses seize investment opportunities and gain a first-mover advantage in the fast-evolving digital technology industry. Companies are also encouraged to closely monitor forthcoming guiding regulations under the DTI Law to ensure compliance and fully capitalize on investment incentives and support when rolling out their products and services in the Vietnamese market.

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