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March 18, 2025

Vietnam’s National Digital Transformation: Key Legal Developments to Expect in 2025

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On February 6, 2025, the prime minister of Vietnam, Pham Minh Chinh, chaired an online meeting to review the progress of Vietnam’s digital transformation agenda. The meeting assessed achievements under the National Digital Transformation Program and Project 06 on the development and application of population data, electronic identification, and authentication for national digital transformation for the period 2022-2025, with a vision to 2030, approved by the prime minister in 2022. The meeting also outlined key legislative and regulatory priorities for 2025, as set forth in Notice No. 56/TB-BPCP issued by the Government Office on February 23, 2025 (Notice 56).

One of the central focuses of the 2025 digital transformation agenda is the development and issuance of laws and regulations governing digital technology, data management, and cybersecurity. Below are the key legal developments provided in Notice 56 that stakeholders should anticipate in the coming months.

1. Law on Digital Technology Industry

The Ministry of Information and Communications (MIC) has been tasked with finalizing the draft Law on Digital Technology Industry (DTI Law) for submission to the National Assembly at its 9th session in May 2025. This law is expected to establish a comprehensive legal framework for the digital technology sector, addressing regulatory gaps in emerging fields such as artificial intelligence (AI), Internet of Things (IoT), cloud computing, big data and platform services to promote innovation, ensure data security, and support the growth of the digital economy in Vietnam. Concurrently, the MIC will expedite the issuance of guiding decrees to ensure the swift implementation of the DTI Law once enacted.

2. Law on Personal Data Protection and regulations guiding implementation of Data Law

The Ministry of Public Security (MPS) is making efforts to finalize the long-anticipated Law on Personal Data Protection (PDPL)—data protection is currently governed by Decree No. 13/2023/ND-CP on personal data protection—which will be presented to the National Assembly in May 2025. This law is expected to codify Vietnam’s data protection framework, with a strong emphasis on compliance obligations for businesses handling personal data.

Additionally, the MPS is tasked to finalize decrees guiding the new Data Law, which will take effect on July 1, 2025, and governs the management, integration, and usage of national and specialized databases.

3. Law on Science, Technology, and Innovation

The Ministry of Science and Technology (MOST) is leading efforts to finalize the Law on Science, Technology, and Innovation, with a submission deadline of May 2025. This legislative revision will incorporate provisions on innovation incentives, R&D funding mechanisms, and intellectual property protection for technology-driven enterprises. Once enacted, this new law will replace the current Law on Science and Technology.

Additionally, a Government Steering Committee on Science, Technology, Innovation, and Digital Transformation is being proposed. This committee will coordinate regulatory efforts across ministries to streamline policy implementation in the digital economy.

4. Decree guiding implementation of Law on E-Transactions regarding shared databases

The MIC has been assigned the responsibility of drafting a decree to provide guidance on the implementation of the Law on E-Transactions, particularly in relation to shared databases. This decree aims to establish interoperability standards for data exchange among government agencies and businesses.

5. Establishment of national government data bodies

 National Data Center: A major initiative under Project 06 is the establishment of the National Data Center, slated to become operational by August 2025. To ensure legal oversight, the MPS will draft a regulatory framework governing this center’s operations. Notably, given the National Data Center’s critical role in data integration and e-government initiatives, businesses engaging with government data systems should closely monitor these developments.

 National Data Monitoring Committee: Further, recognizing the need for robust governance over data usage, the government is considering the establishment of a National Data Monitoring Committee. The MPS, in collaboration with MIC and MOST, will submit a proposal for this committee by the first quarter of 2025. This committee would be expected to oversee compliance with data regulations.

Outlook

Vietnam’s digital transformation is set to accelerate in 2025, bringing significant changes to the legal and regulatory landscape. Businesses in AI, cybersecurity, cloud computing, and data analytics should prepare for compliance requirements and evolving policies. Additionally, foreign investors and tech companies looking to expand in Vietnam are recommended to stay updated on legislative developments to navigate risks and take advantage of new opportunities in this fast-evolving market.

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