Law on Digital Technology Industry: Need for transparent, drastic and timely implementation steps

Satellite and drone models successfully researched by the Vietnam Academy of Science and Technology are displayed at the exhibition of achievements in science and technology, innovation and digital transformation on the occasion of National Day, September 2.

Institutional Turning Points in the Digital Age

In fact, any country that can seize the opportunities in these three areas will have a distinct advantage in the global value chain. After the 1997 financial crisis, South Korea chose semiconductors as its “national lifeblood” and succeeded thanks to the strong support of the government . Singapore has built a legal framework for financial sandboxes, data security, and AI talent attraction policies many years ago, thereby becoming the technology and financial center of Asia.

However, to turn potential into power, each pillar requires distinct substantive actions, beyond the nominal framework of law.

For the semiconductor industry, the challenge is not only to attract global corporations to set up assembly and testing factories (ATMs), but also to help Vietnam move up the value chain and participate in design and trial production. Policies need to focus on training microchip design engineers, creating special incentives for startups in this field, and encouraging domestic R&D.

With artificial intelligence (AI), the law needs to be specified with regulations on the construction and sharing of Big Data, a legal corridor on AI ethics, and a mechanism to determine liability when AI systems cause damage. Without these regulations, AI will be difficult to apply widely and is at risk of being abused.

Vietnam is a latecomer, but if we are clever, we can take advantage of the “coming later to learn” advantage and avoid the mistakes of those who came before. The question is: will this law just stop at naming and declaring, or will it really become an effective policy tool to transform potential into real strength?

An important point in the Digital Technology Industry Law is the recognition and classification of digital assets, including virtual assets, crypto assets and “other digital assets”. This is a significant step forward, because in fact, Vietnam is among the three countries with the highest cryptocurrency adoption rate in the world, with more than 20% of the population owning crypto. Blockchain capital flows in the 2023-2024 period are estimated to reach 105 billion USD. But that attraction also has many potential risks.

To understand clearly, we need to look back at the lesson of money issuance in history. Before 1929, in the US, commercial banks were allowed to issue their own money, backed by gold or silver. When the Federal Reserve was established in 1913, the federal dollar existed alongside private bank money. This system collapsed during the Great Depression of 1929, and the issuance of money by private banks was banned. Later, the US ended the bond between the dollar and gold, opening the era of fiat money.

Today, with cryptocurrencies, anyone can issue a new digital currency. Their value is based entirely on trust and market sentiment, not controlled by any central bank. Faced with this risk, the US government intervened. In 2025, a stablecoin law was enacted, requiring issuers to guarantee their value 1:1 with US dollars issued by the Fed, to limit systemic risk.

Beyond stablecoins, the US Congress is also discussing the Genius Act 2025, a comprehensive digital asset bill. According to expert Vu Quang Viet, this bill sets out three important pillars:

First: Clear classification: Identify which digital assets are securities, commodities, or means of payment to assign to the correct regulatory agency (Securities Commission, Commodity Exchange Commission, or Fed).

Second: Regulations on legal responsibility: Require issuers to be transparent in information and ensure investors' rights, prevent fraud.

Third: Establish a technology monitoring mechanism: Force exchanges and e-wallets to comply with cybersecurity and anti-money laundering standards.

In that context, Vietnam’s Digital Technology Industry Law needs to go one step further: not only stopping at defining “other digital assets”, but also classifying them specifically and identifying the direct management agency. Otherwise, the risk of “shadowing” is very high, causing investors to lose confidence and creating loopholes for financial crimes.

Another breakthrough of the law is the policy of attracting high-quality human resources. For Vietnamese people, the law allows direct recruitment into state agencies, even appointment of leaders without planning. For international experts, the law offers incentives of 5-year temporary residence cards and exemption of personal income tax for the first 5 years.

These are bold and innovative regulations. However, the question arises: what is “high-quality digital technology human resources”? Without a transparent mechanism, the risk of taking advantage of policies and turning incentives into “requests and grants” is completely real.

To avoid this, an independent assessment board needs to be established, bringing together reputable experts to make objective and public assessments. At the same time, it is important to remember that incentives are only a small part. What retains talent is an attractive creative ecosystem: modern research facilities, convenient living environments and healthy competition, as Singapore, Dubai or Shenzhen have successfully done.

From Law to Action: Urgent Needs and Barriers to Overcome

For the Digital Technology Industry Law to truly come into effect, the following actions are extremely urgent:

First, issue sub-law documents early and in detail: It is necessary to soon have decrees and circulars specifying concepts such as "other digital assets", establishing a sandbox mechanism, and especially clearly defining state management responsibilities, possibly learning from the experiences of the US and Singapore.

Second, build a comprehensive human resources strategy: It is necessary to form a truly creative research environment, connecting institutes - schools - businesses, instead of just stopping at tax incentives.

Third, ensuring transparent management: For the recruitment of talents into state agencies, a strict and public monitoring mechanism is needed to avoid turning breakthrough policies into "back doors" for group interests.

Fourth, centralized development planning: The government needs to select a few key areas for concentrated infrastructure investment, creating a large enough ecosystem, avoiding localities developing according to trends.

Fifth, establish a genuine public-private partnership mechanism: Enterprises, industry associations and experts must be involved from the very beginning in the process of policy formulation and monitoring through advisory councils with real power. Laws can only survive if they truly reflect market needs and realities.

The implementation of the above actions will certainly face many challenges. These include the lack of coordination between ministries and sectors; and the risk of "boxing" in the management of new areas such as digital assets.

Looking back at history, the 1999 Enterprise Law was a turning point that paved the way for the private economy. Today, the Digital Technology Industry Law can become a similar milestone, if we know how to turn aspirations into real actions.

Especially with digital assets, this is a “double-edged sword”. If well managed, it can promote innovation and create new channels for capital mobilization. But if there is a lack of supervision, it can destabilize the financial system. The history of issuing money in the US and the lesson of inflation in Vietnam are valuable examples. Comparing with the Genius Act 2025 shows that the world is moving very fast, and Vietnam cannot just “declare the concept” without a specific action framework.

Therefore, the law cannot be just a manifesto. It needs to be accompanied by transparent, drastic and timely implementation steps. Only then can Vietnam make a breakthrough, affirming its position as an innovative nation, deeply integrating into the global value chain while maintaining a stable socio-economic foundation.

Dr. To Van Truong, Former Director of Southern Planning Institute.

Source: https://nhandan.vn/luat-cong-nghiep-cong-nghe-so-can-nhung-buoc-trien-khai-minh-bach-quyet-liet-va-kip-thoi-post906012.html