Vietnam has passed a sweeping law to regulate digital assets and boost the country’s technology sector, formally legalizing crypto assets and laying the groundwork for strategic investments in artificial intelligence and semiconductors.
The Law on Digital Technology Industry, approved by the National Assembly on Saturday, is the country’s first comprehensive legislation governing digital assets.
It classifies these assets into two categories: virtual assets used for exchange or investment, and crypto assets, which rely on encryption to validate ownership and transactions.
Both categories exclude securities, fiat-backed digital currency, and other regulated financial instruments.
The government is tasked with issuing detailed classifications, business conditions, and oversight mechanisms.
Regulatory agencies are also mandated to adopt measures to ensure cybersecurity and prevent financial crimes, aligning with global anti-money laundering standards.
Vietnam has been on the Financial Action Task Force’s “gray list” since 2023 for gaps in virtual asset oversight. The new law is expected to bolster compliance and improve the country’s international standing when it takes effect on Jan. 1, 2026.
Drafted by the Ministry of Science and Technology, the law introduces incentives for companies operating in digital technologies, with a particular focus on AI, semiconductor development, and shared digital infrastructure.
Tax breaks, subsidies for workforce development, and land-use incentives are included to encourage domestic and foreign investment.
The legislation supports the creation of a semiconductor supply chain, covering R&D, design, manufacturing, and testing.
It aims to position Vietnam as a vital player in the global chip industry, leveraging existing capabilities in packaging and testing while fostering growth in higher-value segments.
It also mandates risk control measures for AI systems and integrates digital tech training into national education, reinforcing Vietnam’s long-term goal to build a digitally skilled workforce.