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.
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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.