Future bounds pushing into digital realm through law establishment
Vietnam Embraces Digital Revolution with Comprehensive Regulatory Framework
Vietnam is taking bold steps to shape its digital future, aiming to foster a society where technology serves people, not replaces them. The country's latest move is the passing of the Law on Digital Technology Industry (DTI), making it the first nation to formally and comprehensively recognise digital assets under national law.
The DTI law, overseen by the Minister of Science and Technology, defines the contours of digital products, services, and platforms. It establishes state support mechanisms for the domestic digital economy, sets security standards, and outlines responsibilities for public sector leadership in digitalisation. This comprehensive framework paves the way for regulated markets, safe adoption of cryptocurrencies, and innovative applications of blockchain in sectors such as finance, supply chain, and public administration.
Vietnam ranks second globally in cryptocurrency ownership, making this legal recognition essential. The DTI law officially recognises digital assets, addressing the growing risk that digital tools, especially AI, could displace critical thinking, particularly in education. Experts warn against unregulated machine intelligence outpacing human oversight.
The State Bank of Vietnam is actively exploring design models for Central Bank Digital Currencies (CBDCs) tailored to local needs. A well-implemented CBDC could enhance transparency, curb the informal economy, reduce transaction costs, and enable inclusive digital finance in rural regions. The framework for CBDCs will integrate with the DTI law to form a unified legal environment for digital finance.
Vietnam's digital transformation cannot succeed unless the population's digital literacy is raised. To this end, the DTI law commits to strengthening local innovation by supporting domestic firms that develop digital technologies, particularly those with a verifiable Vietnamese origin.
To promote real-time learning between regulators and innovators, Vietnam should accelerate its implementation of regulatory sandboxes. These sandbox frameworks are especially useful in fields like decentralised finance, blockchain logistics, and AI-assisted legal services. Vietnam could leverage the experience of Singapore, particularly in blending regulatory clarity with technological experimentation.
As part of its ambition to become a digital financial hub in Southeast Asia, Vietnam aims to develop two specialised financial centres in Ho Chi Minh City and Danang. To support this goal, the country plans to double the number of private firms to two million by 2030, raise their GDP contribution to 60-65 per cent, and cultivate 10,000 internationally competitive CEOs.
In addition to administrative consolidation, merging provinces and centrally governed cities to improve coordination and eliminate bureaucratic redundancy, Vietnam is also implementing measures to attract foreign investment. The DTI law aims to embed digital technologies into Vietnam's legal framework and empower public and private institutions to scale digital solutions, attract investment, and compete internationally.
In conclusion, Vietnam's comprehensive approach to digital regulation is a significant step towards fostering a digital society that serves its people. By addressing the challenges posed by digital tools and embracing innovation, Vietnam is positioning itself as a leader in the digital age.
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