tl;dr
Vietnam's National Assembly approved the Law on Digital Technology Industry with 441 out of 445 votes, legalizing digital assets and providing incentives for semiconductor manufacturing, AI development, and digital startups. Effective January 1, 2026, the law defines digital assets using blockchain ...
Vietnam’s National Assembly has passed a groundbreaking Law on Digital Technology Industry, approving it with an overwhelming majority of 441 out of 445 votes. This legislation legalizes digital assets and introduces extensive incentives aimed at semiconductor manufacturing, artificial intelligence development, and digital startups. The law, effective January 1, 2026, defines digital assets as products created, issued, transferred, and authenticated using blockchain technology, clarifying property rights under civil law.
The legislation categorizes digital assets into three main types: virtual assets for exchange or investment purposes, crypto assets that leverage encryption for authentication, and other digital assets. It explicitly excludes securities, digital representations of fiat currency, and other financial instruments from these categories. This legal framework addresses a long-standing issue that forced many Vietnamese crypto and tech firms to relocate abroad, notably to Singapore, due to regulatory uncertainty.
Vietnam’s growing crypto adoption is noteworthy, with the country ranking fifth globally for crypto adoption in 2024. Despite legal ambiguities until now, more than $105 billion in blockchain market investments have entered Vietnam during 2023-24, though much of this investment occurred offshore. The new law seeks to keep these innovations domestic by providing significant benefits to digital technology enterprises and investors.
The legislation aims for a bold target of nurturing 150,000 digital technology enterprises by 2035, vastly expanding from current levels. To support this growth, the law offers tax incentives such as corporate income tax rates as low as 10% for 15 years, exemptions from import duties, and waivers on land rental fees. Further, large projects investing heavily—over $80 million in data centers or $160 million in semiconductor facilities—qualify for additional incentives, including a five-year personal income tax exemption for foreign experts.
This law reflects Vietnam’s strategic ambition to become a major regional tech leader and integrate deeply into the global semiconductor supply chain. By fostering an environment that encourages semiconductor development and AI innovation, Vietnam positions itself as a critical player in the technology sector by 2035, offering a robust model for emerging markets navigating the digital asset and tech industries.