Vietnam has passed a standalone law specifically focused on the digital technology industry, according to the Ministry of Science and Technology, which drafted the legislation.
As reported by the official government news site, en.baochinhphu.vn, the law is set to take effect on January 1, 2026, and aims to drive national digital transformation, support domestic tech enterprise growth, and elevate Vietnam’s role in the global technology sector.
Key provisions include policies to boost the share of domestically produced technology through targeted support. Domestic startups will receive funding covering up to 50 percent of costs for acquiring advanced technologies and developing prototypes. Foreign-invested firms are encouraged to collaborate with local enterprises, with tax incentives offered for technology transfers.
To support international expansion, the government will establish a global network of representatives for the digital technology sector and integrate support into international cooperation programs. The goal is to cultivate Vietnamese tech firms capable of evolving into multinational competitors.
The law also includes support for small and medium-sized enterprises, such as assistance with infrastructure, workforce training, and priority access to public procurement opportunities. New digital technology zones will offer tax breaks and other incentives to attract startups and boost innovation.
Significantly, the law introduces a legal framework for digital assets, providing definitions and classifications for tokenized and virtual assets, ensuring transparency and international compliance.
Workforce development is also a cornerstone: high-quality professionals in the sector will be exempt from personal income tax for five years, while foreign experts will benefit from five-year visas and work permit exemptions.
AI governance is addressed through oversight requirements and a classification system based on risk, with strict standards applied to high-risk systems.
The law was passed alongside several other economic and investment-related laws.
Need Help?
If you’re concerned or have questions about how to navigate the global AI regulatory landscape, don’t hesitate to reach out to BABL AI. Their Audit Experts can offer valuable insight and ensure you’re informed and compliant.
