New points in the law on digital technology industry

The Law on Digital technology industry was passed by the National Assembly at its 9th Session, 15th Legislature on June 14, 2025, and is expected to take effect on January 1, 2026. This Law ushers in a new era for the digital technology industry in Vietnam. The draft Law on Digital technology industry was institutionalized from the major policies set forth in Resolution no. 57-NQ/TW and Resolution no. 68-NQ/TW of the Politburo. Some notable provisions of the LDTI are as follows: 

1. The First legal framework for Artificial intelligence and Digital assets 

For the first time, Vietnamese law provides regulation on artificial intelligence (“AI”) and digital assets under the Law on Digital technology industry (“Law on DTI”), representing a major advancement for Vietnam in the digital era, aligning more closely with global developments. The scope of regulation of the Law on DTI revolves around the development of the digital technology industry, the semiconductor industry, artificial intelligence, digital assets, as well as the rights and obligations of relevant stakeholders. 

Artificial intelligence and digital assets are regulated under Chapter IV and Chapter V, respectively. These provisions are further detailed in guiding instruments. Key highlights include: 

1.1. Artificial intelligence (AI) 

An “Artificial intelligence system” is defined under clause 9 Article 3 of the Law on DTI as a machine-based system designed to operate with varying levels of autonomy and adaptive capacity after deployment, to achieve explicit or implicit objectives, inferring from input data received to generate predictions, content, recommendations, or decisions that may affect the physical or electronic environment. An AI system is deemed a digital technology product integrating hardware, software, and data. 

The list of products generated by artificial intelligence shall be prescribed in detail by the Minister of Science and Technology in guiding regulations. 

1.2. Digital assets 

Digital assets are recognized as assets under the Civil Code, expressed in digital data form, created, issued, stored, transferred, and authenticated by digital technology in an electronic environment. The Law on DTI introduces classification criteria for digital assets, including (i) purpose of use, (ii) technology, and (iii) other criteria. Two categories of digital assets are prescribed: 

1. Virtual assets in electronic environments, which may be used for exchange or investment purposes. Virtual assets exclude securities, digital forms of legal tender, and other financial assets under laws on civil and financial matters. 
2. Cryptographic assets, being digital assets that utilize cryptographic technology or similar digital technology for authentication in their creation, issuance, storage, and transfer. Cryptographic assets exclude securities, digital forms of legal tender, and other financial assets as regulated under civil and financial laws. 

From the above, the Law on DTI limits the scope of digital assets by excluding securities, digital legal tender, and other financial assets. Similar to AI, the definitions and regulations on digital assets under the Law on DTI are general, with practical application subject to detailed guidance by competent authorities. 

2. Incentives for Digital technology industry activities 

Activities relating to the development of digital technology industry infrastructure enjoy incentives in taxation and land use, and may also be financed by public funds. These incentives are not only applicable to medium and large enterprises but also to innovative startups, which may benefit from tax and land incentives. 

Innovative startup projects in the digital technology industry are eligible for direct financial support from local budgets under the State Budget Law or from the Digital Technology Industry Development Program, for activities such as: 

• Training and development of digital technology human resources; 

• Attracting high-quality digital technology talent; 

• Research and development, pilot production; 

• Startup advisory services. 

Support policies apply to both domestic and foreign high-quality digital technology professionals. For instance, individuals meeting the criteria for digital technology human resources may be considered for appointment as public officials or employees without the need for competitive examinations. 

3. Corporate income tax incentives for Research and Development (R&D) 

The Law on DTI provides that research and development of digital technology products and services are entitled to the highest level of incentives under laws on science, technology, innovation, and digital transformation. Enterprises’s expenditures on research and development may be allocated as additional deductible expenses when determining corporate income tax liability under the Law on Corporate Income Tax. This effectively reduces the payable corporate income tax for enterprises engaged in digital technology R&D. 

Date written: 20/09/2025

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