• Vietnam becomes the first country with a dedicated digital technology law.
• Law supports AI, digital assets, and local tech innovation by 2026.
• Offers tax breaks, grants, and visas to tech firms and specialists.

Vietnam has become the first country in the world to adopt a separate law focusing entirely on the digital technology industry. Known as the Law on Digital Technology Industry (Digital Technology Law) and approved on June 14, 2025, during the ninth working session of the 15th National Assembly, it will come into force on January 1, 2026.

Strongly supported, this Law received 441 Votes in favor from the 445 Deputy. These votes enable the law to move forward in shaping Vietnam’s digital economy and provide legal certainty on emerging areas like artificial intelligence (AI), digital assets and data services.

The Law on Digital Technology Industry, developed by the Ministry of Science and Technology, fulfills national priorities for digital transformation, supports home-grown innovation, enhances competitiveness, and encourages integration into the global economy. The law also reflects the spirit of Resolution No. 57-NQ/TW, and Resolution No. 68-NQ/TW, which emphasize the roles of science, technology, and the private sector.

The Digital Technology Law creates organized incentives for a wide range of stakeholders. At the core of the law is a dedication to enhance the output and worldwide competitiveness of Vietnam's technology items through the "Make in Vietnam" initiative. The government aims to foster the growth of 150,000 digital technology businesses by the year 2035.

Local startups may obtain grants of up to 50 percent for obtaining technology and creating prototypes, whereas small and medium-sized enterprises (SMEs) will gain from financial support and educational programs. These involve preferences for government contracting and backing for infrastructure investments.

Foreign-invested enterprises (FIEs) are encouraged to collaborate with local companies and share their advanced technologies. In return, they obtain prolonged corporate tax reductions and diverse investment incentives, tactics aimed at boosting integration into worldwide supply chains and promoting technology localization.

A crucial element of the new law is its thorough financial framework designed to promote digital creation and innovation. Government-backed funding will concentrate on high-tech, innovative projects, while tax breaks and exemptions from import tariffs will be offered for essential equipment and research and development (R&D) activities.

Firms in the digital technology industry will gain tax advantages similar to those provided in specified underprivileged areas, rendering them attractive to both local and international investors. Funding from state investment funds and grants fosters additional growth.

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The law strongly prioritizes the development of the workforce. Skilled digital specialists, whether local or international, will experience numerous benefits. Vietnamese specialists in this area will not have to pay personal income tax during the initial five years of their jobs. Foreign specialists receive five-year visas and exemptions from work permit obligations, greatly lowering administrative hurdles.

The government pledges to finance digital education, encompassing curriculum creation, certification programs, and upskilling efforts. Businesses that fund training for their digital employees can seek financial assistance and tax benefits.

Vietnam’s Digital Technology Law has embraced a proactive, risk-oriented strategy toward AI. AI systems are classified into high-risk and non-high-risk categories, where high-risk applications must adhere to rigorous compliance requirements, technical standards, and regulatory scrutiny. AI-driven products must be distinctly labeled to maintain accountability and transparency.

The government will also designate funds for AI research and data centers to drive rapid growth in the industry. The law has identified prohibited applications of AI, along with ethical principles that will ensure the introduction of technology is within public safety and privacy limits.