On 14 June 2025, the National Assembly passed Law No. 71/2025/QH15 on Digital Technology Industry ("Law on Digital Technology Industry"), making Vietnam the first ever country on the planet Earth to pass such a bill and to formally recognize virtual assets. Key highlights of the Law on Digital Technology Industry are as follows:
1. Recognition of virtual assets
Law on Digital Technology Industry recognizes virtual assets as a
type of asset as provided under the Civil Code. Virtual assets are
described as assets expressed in the form of digital data, created,
issued, stored, transferred, and authenticated by digital
technology in the electronic environment.
The Law sets out principles to classify virtual assets and provides
three forms of virtual assets as below:
(i) Virtual assets – assets in
the electronic environment used for exchange or investment
purposes. Virtual assets do not comprise securities, digital forms
of legal currency, and other financial assets as prescribed by the
law on civil and financial matters;
(ii) Crypto assets – type of virtual assets that uses
encryption technology or digital technology with similar functions
to authenticate assets during the process of creation, issuance,
storage, and transfer. Crypto assets do not include securities,
digital forms of legal currency, and other financial assets as
prescribed by civil and financial laws;
(ii) Other virtual assets.
According to the Law on Digital Technology Industry, virtual assets
will be managed in all relevant aspects in Vietnam, including the
rights/obligations of involved parties and conditions to provide
services relating to crypto assets, while the detailed regulations
will be provided by the Government. Compared to one of the latest
drafts, the sandbox mechanism for virtual assets service providers
was removed from the Law, and it is expected that the Government
will provide a detailed guiding document to regulate this
matter.
2. Sandbox mechanism for digital technology products and
services
The Law stipulates that there will be a sandbox mechanism provided
to enterprises applying digital technology for their products and
services, including a mechanism to exclude responsibility for
participating agencies, organizations, businesses, and individuals.
Down the line, enterprises will be allowed to conduct controlled
trials of products and services applying digital technology in
accordance with the provisions of the relevant laws. It is expected
that this sandbox mechanism will cover the supply of virtual assets
products and services.
3. Priority given to research and development activities
Priority will be given to facilities focusing on esearch and
development activities, and digital technology innovation in
industries, fields, and localities within the assigned scope,
tasks, and powers in accordance with socio-economic development
goals and orientations for digital technology industry development
in each period. There will be incentives on land, credit, tax and
other preferential mechanisms in research, testing, development,
production and application of digital technology products and
services.
4. Attracting high-quality digital technology human
resources
High-quality digital technology expats are granted temporary
residence cards with a validity of 05 years and are extended
according to the relevant laws. Spouses and children under 18 years
of age of high-quality digital technology expats are granted
temporary residence cards with a validity corresponding to the
validity of such expats, and are supported by local authorities in
procedures relating to employment, and enrollment in educational
and training institutions in Vietnam.
5. Semiconductor industry
Foreign investment and the mobilization of foreign resources are
encouraged in the case of the semiconductor industry in Vietnam.
The manufacture of raw materials, materials, equipment, machinery,
and tools for the semiconductor industry can be provided with
special investment incentives according to the relevant laws. Also,
enterprises implementing semiconductor chip design projects are
supported with funding for human resource training and development,
research and development, trial production, procurement of
machinery, equipment, technology, and technological innovation from
the local budget, according to the relevant laws.
The Law on Digital Technology Industry will be effective on 1 January 2026.
Please do not hesitate to contact Dr. Oliver Massmann at omassmann@duanemorris.com if you have any questions on the above or if you wish to plan your investment in Vietnam in line with the new provisions on digital technology. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.
