Speaking at a Ministry of Science and Technology press conference on June 27, Nguyen Khac Lich stated that the Digital Technology Industry Law (DTIL), passed by Vietnam’s 15th National Assembly on June 14, 2025, and effective from January 1, 2026 (some provisions from July 1, 2025), is a strategic leap for the nation’s digital ambitions.

The DTIL comprehensively regulates the digital technology industry, including semiconductors, artificial intelligence (AI), and digital assets. It provides a unified legal foundation for the development of key technology sectors.

Vietnam becomes one of the first countries to legislate detailed regulations for AI and digital assets, ensuring transparency, cybersecurity, and user protection.

To make digital technology a core economic driver growing at 2-3 times the GDP rate, the law offers exceptional incentives for priority projects in tech, semiconductors, AI, and data centers. For instance, projects with capital exceeding 6 trillion VND (around $235 million) will enjoy a 5% tax rate for 37 years, six years of tax exemption, a 50% tax reduction for the next 13 years, and up to 22 years of land rent exemption, with a 75% reduction for remaining years.

Businesses are eligible for financial support from state budgets and development funds, with R&D expenses deductible at 200% for corporate income tax purposes.

Digital tech clusters and startups will receive similar incentives as those in economically challenged areas, significantly boosting the ecosystem.

Lich highlighted that the law champions self-reliance in strategic digital technologies, mandating robust R&D, domestic design, and production of digital products and services.

It institutionalizes the "Make in Vietnam" initiative, prioritizing Vietnamese tech products in public projects to ensure market stability.

Startups will receive funding for technology acquisition, prototyping, and international marketing. Foreign-invested firms are encouraged to transfer technology and collaborate with local companies to boost global competitiveness.

The law also prioritizes digital talent development through training, scholarships, low-interest loans, and online education platforms. High-quality personnel are granted five-year income tax exemptions and visas, along with competitive compensation packages. Local and international tech talent will receive financial support, R&D funding, and national recognition.

The DTIL introduces mechanisms for the state to commission businesses to develop critical technologies under national projects, with financial support and trade promotion to expand international markets.

Aiming to build a robust digital business ecosystem with 150,000 firms by 2035, the law offers comprehensive support policies. SMEs will benefit from infrastructure investment support, skilled workforce training, and preferential access to public procurement.

It also promotes environmentally friendly digital products and services, encouraging reuse, recycling, and reduced environmental impact.

The digital ecosystem will integrate large, small, and supporting enterprises. Investments in infrastructure like AI data centers and 5G networks will be prioritized, involving both public and private sectors. A regulatory sandbox supports innovative startups.

For the first time, the semiconductor industry has a legal foundation focused on specialized chip development and global supply chain integration. Projects benefit from unique incentives and support across the supply chain - from materials and products to electronics manufacturing. Businesses may import used production lines and receive R&D subsidies to enhance Vietnam’s global standing in the semiconductor sector.

The DTIL establishes the first legal framework for AI, emphasizing human-centric, transparent, and safe practices. High-risk AI systems must meet stringent technical, data, and cybersecurity standards. AI-generated products must be clearly labeled, and developers are held accountable for safety and ethical use. AI is promoted as a new mode of production and economic transformation.

Digital data, under this law, is recognized as a critical resource and production material. The state will offer top-tier incentives for AI research, development, and deployment to boost national capacity and create high-value economic models.

The DTIL legally defines digital assets - including virtual and tokenized assets - and provides mechanisms for ownership, transactions, and security. With over 20% of Vietnamese citizens owning cryptocurrencies (Triple-A 2024), the law addresses real-world demands, supports blockchain technology, and protects users from risks - contributing to a transparent digital economy.

The law prioritizes investments in essential digital infrastructure such as AI data centers, digital tech zones, and national labs. It supports domestic and international market expansion through information sharing, supply-demand matching, and promotion of “Make in Vietnam” products. Strategic tech procurement will favor Vietnamese firms through direct contracting and priority bidding.

Thai Khang