Vietnam Enacts Landmark Law to Boost Digital Technology Sector Including Semiconductors, AI, and Digital Assets

Legislative Overview

The Vietnam’s National Assembly has recently approved the Law on Digital Technology Industry (DTI Law) during its 9th Session of the 15th Legislature. Scheduled to come into force on 1 January 2026, the DTI Law is Vietnam’s first comprehensive legal framework tailored to support and regulate the digital economy. It aims to strengthen local innovation capacity, promote high-tech manufacturing, and increase international competitiveness in digital fields.

Incentives for High-Tech Enterprises

The DTI Law introduces a wide range of benefits for enterprises involved in digital technology, particularly in the semiconductor and artificial intelligence sectors. Projects focused on research and development, chip design, manufacturing, packaging, and AI data center construction are eligible for:

• Corporate income tax benefits

• Reductions in land lease and infrastructure costs

• Financial support for building factories, purchasing technical equipment, and setting up advanced production units

• Expedited customs procedures and exemptions from import and export restrictions

  
  

The law also encourages the development of shared infrastructure, regulatory sandbox programs, and talent pipelines, making it easier for both local and foreign businesses to invest and expand in Vietnam’s tech sector.

Risk Based Regulation of Artificial Intelligence

A key focus of the DTI Law is the development and ethical deployment of artificial intelligence. The legislation introduces a classification system for AI technologies based on risk level: high-risk, high-impact, and standard. Each category will carry specific compliance requirements. All AI systems must adhere to core principles of transparency, safety, accountability, and fairness, with additional controls for high-risk applications. This structure supports innovation while ensuring public trust and responsible use.

Legal Recognition of Digital Assets

In a significant legal advancement, digital assets are now formally recognized as a distinct class of property under Vietnamese law. The DTI Law outlines essential principles for the ownership, transfer, use, and protection of digital assets. Companies operating in this space must implement robust cybersecurity and anti-money laundering frameworks. Regulatory oversight will ensure compliance with national and international standards, including measures to prevent terrorism financing and other illicit activities.

Strategic Implications for Businesses

• Companies in semiconductors and AI should begin evaluating eligibility for government incentives and prepare compliance protocols for AI-related operations.

• Businesses and platforms dealing with digital assets now have a legal foundation to operate but must align with rigorous security and reporting requirements.

• Foreign investors and technology firms may view Vietnam as an increasingly favorable destination for high-tech investments, especially as the legal framework becomes more stable and transparent.

  
  

Vietnam’s DTI Law marks a pivotal moment in the country’s shift toward a digitally driven economy. It reflects a balanced approach that supports technological advancement while maintaining governance standards. The timely issuance of implementing guidelines in the coming months will be crucial for successful enforcement and industry adoption.