Key Takeaways
- Vietnam’s National Assembly has passed the “Digital Technology Industry” law.
- The new law is meant to foster industries such as semiconductor manufacturing and AI.
- It also paves the way for crypto regulation.
The Vietnamese National Assembly has passed a far-reaching “Digital Technology Industry” law that aims to regulate crypto and provide government support for high-tech sectors, including AI and semiconductors.
With U.S. tariffs negatively impacting Vietnam’s traditional manufacturing base, the government’s focus on digital technology emphasizes innovation and employment.
Digital Technology for Job Creation
With many Vietnamese employers feeling the pressure of U.S. tariffs, Vietnam’s communist government recently moved to shore up the economy with a string of Politburo Resolutions.
Among these were Resolution No.57-NQ/TW, a breakthrough strategy for national science, technology, innovation, and digital transformation; and Resolution No.68-NQ/TW on private sector development.
Both resolutions laid the groundwork for the Digital Industry Law adopted by the National Assembly on Saturday, June 14.
The legislation places a strong emphasis on education and training, aiming to develop Vietnam’s nascent digital sector.
Meanwhile, companies in relevant sectors will be eligible for government subsidies to help cover the cost of hiring and training a digital workforce.
Tax relief will also be provided for infrastructure projects with significant investment capital.
Alongside provisions on human resource development and technology investment, the Digital Industry Law paves the way for Vietnam to regulate the crypto industry.
Crypto in Vietnam
Until now, crypto has existed outside of Vietnam’s regulatory perimeter, with no established framework for licensing exchanges, for example.
The central bank has generally taken a hard line against cryptocurrency, barring its use for payments and prohibiting banks from handling it.
But under the Digital Industry Law, that could soon change.
The government is now tasked with outlining the market structure, including the classification of different asset types, relevant business conditions and oversight mechanisms.
Meanwhile, regulatory agencies have a new mandate to ensure market stability and prevent financial crime.
Aligning With International Standards
Vietnam’s efforts to regulate the crypto sector reflect growing international pressure.
In 2023, the Financial Action Task Force (FATF), a global anti-money laundering and counter-terrorist financing (AML/CTF) watchdog, placed Vietnam on its “gray list” of jurisdictions that fall short of global AML/CFT standards.
A follow-up report in 2024 determined that Vietnam had largely failed to prevent the illicit use of crypto and condemned the country’s lack of registration regime for virtual asset companies.
However, Article 50 of the new law requires new measures to prevent and combat money laundering and terrorism.
Removal from the FATF gray list would improve Vietnam’s risk profile for foreign investors, and could help attract new sources of capital and ease trade restrictions.
