Vietnam has passed a law legalizing cryptoassets.

Vietnam has officially legalized digital assets with the National Assembly passing the Digital Technology Industry Law on Saturday.

The law defines cryptocurrency as a digital asset that uses encryption or similar digital technology to verify the process of creation, issuance, storage, or transfer.

According to the new law, digital assets are divided into two types: virtual assets and cryptocurrency.

Virtual assets are a type of digital asset used for exchange or investment. They do not include securities, digital representations of fiat currency, or other financial instruments as defined by civil and financial law.

Cryptocurrency assets are digital assets based on encryption technology to verify transactions and ownership. Like virtual assets, they clearly exclude securities, digital fiat currency, and other financial assets under the current legal framework.

This law assigns the government the responsibility to specify the classification, business conditions, and management of digital assets.

This law also requires regulatory agencies to implement measures to ensure cybersecurity, prevent money laundering, combat the financing of terrorism, and the proliferation of weapons of mass destruction.

These regulations are based on the best international practices. Currently, Vietnam lacks a clear legal framework for digital assets. Since 2023, the Financial Action Task Force (FATF) has placed Vietnam on the "gray list" for anti-money laundering and recommended the establishment of clear regulations regarding virtual assets.

The enactment of this law is expected to improve Vietnam's legal framework, in line with international standards and potentially remove Vietnam from the FATF's watch list.

This law is expected to take effect on January 1, 2026. Drafted by the Ministry of Science and Technology, this law establishes an important legal foundation to promote the digital technology sector in Vietnam.

It offers many special incentives for digital technology businesses and strongly encourages innovation, controlled technology experimentation, and the development of shared digital infrastructure.

Specifically, the law includes policies to encourage digital technology companies, develop shared digital infrastructure, promote innovative startups, train talent, and conduct controlled technology experimentation.

This regulation stipulates that local authorities will implement policies to support the development of human resources for the digital technology sector – especially for those working on key projects related to digital technology products, semiconductors, and AI systems. One of these includes subsidies for the recruitment of high-quality personnel, training, retraining, and skill enhancement for the workforce of enterprises.

The law also encourages organizations and individuals to participate in training, assessment, and certification of digital technology skills according to international, regional, or reputable foreign standards.

Notably, the production and supply of key digital technology products such as software, AI, semiconductors, and AI data centers have been included in the list of prioritized industries, benefiting from investment, tax, and land incentives as prescribed by law.

According to Mr. Le Quang Huy, Chairman of the National Assembly's Committee on Science, Technology and Environment, the newly passed law clearly states Vietnam's strategic goal is to comprehensively develop the semiconductor industry, gradually becoming an essential link in the global supply chain.

The law emphasizes the policy of supporting the development of breakthrough chips, covering the entire value chain from research, design, production to packaging and testing, and promoting integration with the electronics industry, attracting strong foreign investment, and mobilizing all resources to master the technology.

To realize this vision, the law provides special incentives for businesses participating in the semiconductor supply chain; supports R&D activities, ecosystem development, and attracts high-quality human resources.

This flexible approach allows Vietnam to leverage its existing strengths in testing and packaging, while also laying the groundwork for future development in high-tech stages such as chip design and manufacturing.

The law also establishes principles for risk management throughout the lifecycle of AI systems, particularly those deemed to be high-risk. At the same time, digital technology training policies – including those related to AI – will be integrated into the national education system and implemented across both the public and private sectors.

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