Main Points:
- Vietnam’s National Assembly passed the Digital Technology Industry Law on June 14, 2025, legalizing digital assets for the first time and taking effect January 1, 2026.
- Digital assets are classified into two categories: “virtual assets” and “crypto assets,” excluding securities, digital fiat, and other financial instruments.
- The law incorporates international AML (anti–money laundering) and cybersecurity standards, aiming to address FATF gray-list concerns.
- Broad incentives—tax breaks, land-use preferences, R&D support—target core technologies such as AI, semiconductors, and blockchain infrastructure.
- Local governments must promote workforce development via subsidies and digital‐skills training; education policy will embed digital literacy nationwide.
- Recent high-profile crypto scams (e.g., “BitMiner,” “Million Smiles”) underscore the need for tighter oversight and consumer protection.
- Industry analysts predict increased foreign investment, new exchange licensing, and a regulated DeFi ecosystem, leveraging Vietnam’s high crypto adoption rates.
- Preparatory measures include draft resolutions for regional financial centers and a crypto pilot program through 2027.
- Strategic vision positions Vietnam as Southeast Asia’s next digital-technology hub, leveraging regulatory clarity to drive innovation.
1. Legal Recognition of Digital Assets
On June 14, 2025, Vietnam’s National Assembly unanimously approved the Law on Digital Technology Industry, marking the country’s first statute to incorporate digital assets into a formal regulatory framework. Set to take effect on January 1, 2026, the law removes legal ambiguity around cryptocurrencies and related digital tokens, granting enterprises and investors clear guidelines to operate within. This landmark move follows a March 2025 directive from Prime Minister Phạm Minh Chính, which urged the Ministry of Finance (MOF) and the State Bank of Vietnam (SBV) to finalize comprehensive crypto-asset legislation by April 2025.
2. Asset Classification: Virtual Assets vs. Crypto Assets
A central feature of the new law is its bifurcation of digital assets into “virtual assets” (digital properties used for exchanges or investments) and “crypto assets” (tokens validated through cryptographic algorithms during creation, issuance, storage, or transfer). Both categories rely on encryption and digital-ledger verification, yet the law explicitly excludes digital fiat currencies, securities, and other financial instruments governed by existing statutes. This distinction enables tailored regulations and supervision for each class, ensuring that token issuers, exchanges, and custodial services fall under clearly defined licensing regimes.
3. AML, Cybersecurity, and FATF Compliance
Aligned with international benchmarks for anti–money laundering (AML) and cybersecurity, the law integrates measures to detect and deter illicit activities, reflecting Vietnam’s commitment to address its Grey List status with the Financial Action Task Force (FATF) since 2023. Financial institutions and digital-asset service providers will be required to implement customer due diligence (CDD), transaction monitoring, and reporting standards on par with global best practices. The law’s cyber-resilience provisions also mandate robust data-security frameworks, incident-response protocols, and collaboration with law-enforcement agencies to safeguard the integrity of the national digital ecosystem.
4. Incentives for Digital Innovation
Beyond cryptocurrency, the Digital Technology Industry Law is Vietnam’s blueprint for comprehensive digital transformation. It grants preferential tax treatment, land-use concessions, and dedicated R&D funding to enterprises developing core technologies—such as advanced AI, semiconductor design, and blockchain infrastructure. Controlled-sandbox mechanisms enable pilot testing of emerging convergence products and services in a limited scope, time, or geography, promoting innovation while containing systemic risk . These incentives are expected to attract multinational tech firms and startups alike, catalyzing domestic value creation and knowledge transfer.
5. Human Capital Development and Education
Recognizing that technology thrives on skilled talent, the law mandates that provincial and municipal governments establish vocational programs, subsidies, and digital-skills curricula in primary and secondary education. Partnerships between academia and industry will be fostered to ensure graduates meet evolving workforce needs, particularly in chip design, AI-model training, and blockchain development. By embedding digital literacy throughout educational policy, Vietnam aims to cultivate a generation of technologists equipped to sustain its digital-economy ambitions.
6. Combating Crypto Fraud
In recent years, Vietnam has experienced a surge of crypto-related scams, prompting authorities to tighten oversight. Notably, in February 2025, police arrested four individuals operating the fraudulent “BitMiner” mining scheme, which duped over 200 investors out of VND 400 billion (approximately $157,000) through fake mining contracts and training materials. Similarly, in December 2024, Hanoi police thwarted the “Million Smiles” conspiracy, preventing losses of VND 300 billion (about $117,000) tied to a faux “Quantum Financial System” token offering. The new law strengthens enforcement powers, expands definitions of digital-asset fraud, and sets stiffer penalties to deter bad actors.
7. Industry Reaction and Market Outlook
Industry observers anticipate that regulatory clarity will spur a wave of foreign direct investment. Analysts at Crypto for Innovation project that legal recognition and incentives could increase Vietnam’s share of Southeast Asia’s cryptocurrency market by 20 percent over two years. Chainalysis ranked Vietnam third globally in crypto adoption as of early 2025, underscoring high public engagement and a vibrant grassroots ecosystem. Licensed exchanges are already preparing to apply for MOF authorization, while DeFi platforms and token‐issuance service providers are exploring partnerships with local financial institutions to launch compliant offerings.
8. Preparatory Measures: Draft Financial Center and Crypto Pilot Resolutions
Complementing the Digital Technology Industry Law are two draft resolutions in advanced stages: the Draft Financial Center Resolution (allowing international financial hubs to establish digital-asset transaction floors) and the Draft Crypto Pilot Resolution (authorizing a pilot crypto‐market framework through December 31, 2027) . The pilot program will grant licenses for token issuance, trading, custody, and market-making, enabling stakeholders to test operational guidelines before full rollout. Both resolutions target National Assembly approval during the Ninth Session in mid-2025, with pilot results informing permanent regulatory structures.
9. Strategic Implications for Vietnam and ASEAN
By enacting a standalone digital-tech statute, Vietnam becomes the first country globally to consolidate digital-asset regulation within a single law. This comprehensive approach positions the nation to compete with regional leaders such as Singapore and Hong Kong, which have separately advanced crypto licensing and fintech sandboxes. Vietnam’s strategy leverages its strong blockchain adoption rates, burgeoning tech workforce, and cost-competitive talent pool to attract global investors and innovators. Over the medium term, the law is expected to stimulate growth in areas ranging from decentralized finance (DeFi) and non‐fungible tokens (NFTs) to enterprise blockchain applications in supply-chain and identity services.
Conclusion
Vietnam’s Digital Technology Industry Law represents a pivotal milestone in the evolution of its digital economy. By formally recognizing virtual and crypto assets, embedding stringent AML and cybersecurity measures, and offering robust incentives for core technologies, Vietnam has laid the groundwork for accelerated innovation and investment. The law’s emphasis on workforce development and fraud prevention addresses both opportunity and risk, while complementary pilot and financial-center resolutions ensure a smooth transition to full implementation. As Vietnam prepares to emerge from the FATF gray list, its new regulatory clarity promises to unlock Southeast Asia’s next wave of blockchain-driven growth.
