Digital assets legalized in Vietnam

Vietnam has officially legalized digital assets with the approval of the Law on Digital Technology Industry by the National Assembly, the country's legislature, on Saturday.

The law defines crypto assets as digital assets that use encryption or similar digital technologies for validation during creation, issuance, storage, or transfer.

Under the new law, digital assets are categorized into two types: virtual assets and crypto assets.

Virtual assets are a form of digital asset used for exchange or investment. These do not include securities, digital representations of fiat currency, or other financial instruments as defined under civil and financial laws.

Crypto assets are digital assets that rely on encryption technology to validate transactions and ownership. Like virtual assets, they explicitly exclude securities, digital fiat currency, and other financial assets under existing legal frameworks.

The law assigns the government the responsibility of detailing the classification, business conditions, and management of digital assets.

It also mandates that regulatory agencies implement measures to ensure cybersecurity, and prevent money laundering, counter-terrorism financing, and the proliferation of weapons of mass destruction.

These regulations are based on international best practices. Currently, Vietnam lacks a clear legal framework for digital assets. Since 2023, the Financial Action Task Force (FATF) has placed Vietnam on the “gray list” for anti-money laundering and has recommended the establishment of clear virtual asset regulations.

The enactment of this law is expected to help improve Vietnam’s legal framework, align it with international standards, and potentially lead to its removal from the FATF monitoring list.

The law is set to take effect on January 1, 2026. Drafted by the Ministry of Science and Technology, it lays a critical legal foundation to foster the digital technology sector in Vietnam.

It introduces various special incentives for digital technology enterprises and strongly encourages innovation, controlled technology experimentation, and the development of shared digital infrastructure.

Specifically, the law includes policies for incentivizing digital tech companies, developing shared digital infrastructure, encouraging innovative startups, training talent, and controlled testing of technologies.

It stipulates that local governments shall implement policies to support the development of human resources for the digital technology industry - particularly those working on key projects involving digital tech products, semiconductors, and AI systems. One of these is subsidizing costs for hiring high-quality personnel, training, retraining, and upskilling corporate workforces.

The law also encourages organizations and individuals to participate in the training, assessment, and certification of digital technology skills according to international, regional, or reputable foreign standards.

Notably, the production and provision of key digital technology products such as software, AI, semiconductors, and AI data centers are added to the list of prioritized sectors. These areas will receive investment, tax, and land-use incentives as stipulated by law.

According to Le Quang Huy, Chairman of the National Assembly’s Committee on Science, Technology and Environment, the newly passed law clearly outlines Vietnam's strategic goal to develop a comprehensive semiconductor industry and gradually become an essential link in the global supply chain.

The law emphasizes support policies for the development of breakthrough chip lines, covering the entire value chain from research, design, and production to packaging and testing. It also promotes the integration with the electronics industry, attracts strong foreign investment, and mobilizes all resources to gain technological mastery.

To realize this vision, the law provides special incentives for enterprises participating in the semiconductor supply chain; and supports R&D activities, ecosystem development, and the attraction of high-quality human resources.

This flexible approach allows Vietnam to leverage existing strengths in testing and packaging, while laying a foundation for future development in high-tech phases such as chip design and fabrication.

The law also establishes principles for risk control throughout the lifecycle of AI systems, especially those considered high-risk. Concurrently, digital technology training policies - including those related to AI - will be integrated into the national education system and implemented across both public and private sectors.