Vietnam Legalizes Crypto Assets, Aims for Digital Tech Leadership

Vietnam has made a significant advancement in its digital technology sector with the approval of the Law on Digital Technology Industry by the National Assembly on June 14, 2025. This landmark legislation formally recognizes crypto assets and virtual assets as legal entities, marking the first time the country has integrated these digital assets into its legal framework. The law distinguishes between virtual assets, which are digital representations used for exchange or investment, and crypto assets, which rely on encryption technology for transaction validation and ownership. Both categories exclude securities, digital fiat currency, and other financial instruments.

The new law is set to take effect on January 1, 2026, and outlines a comprehensive regulatory framework for the digital technology industry. It mandates the government to establish clear rules around business classifications, licensing, cybersecurity resilience, and anti-money laundering (AML) measures aligned with the Financial Action Task Force (FATF) standards. Vietnam has been on the FATF grey list since 2023 due to AML concerns, and this move aims to align the country's financial oversight with international norms.

Beyond the legal recognition of crypto assets, the law provides incentives for broader digital industries. It offers tax breaks, land, and research and development (R&D) incentives for firms working in artificial intelligence (AI), semiconductors, and infrastructure. Provincial governments are encouraged to support workforce training and curriculum integration to foster digital skills, positioning Vietnam as a regional digital tech hub. The law is hailed as the first dedicated standalone legislation for a nation's digital technology industry, reflecting Vietnam's ambitious vision to become a leader in this sector.

Vietnam ranks among the top countries for crypto interest and usage, with a significant number of users and a market exceeding $100 billion. However, until now, crypto operated in a legal grey zone. The new law aims to transition this underground economy into a regulated, transparent market, safeguarding investors while attracting innovation. Regulatory details, such as licensing frameworks and operational conditions, will be drafted by relevant agencies before the law takes effect. Financial institutions may need to upgrade their AML and cybersecurity systems to stay compliant, while businesses in blockchain, AI, and semiconductor sectors stand to benefit from new incentives.

The law also emphasizes the development of a comprehensive semiconductor industry, aiming to make Vietnam an essential link in the global supply chain. It supports policies for the development of breakthrough chip lines, covering the entire value chain from research and design to production, packaging, and testing. The law promotes integration with the electronics industry, attracts foreign investment, and mobilizes resources to gain technological mastery. Special incentives are provided for enterprises participating in the semiconductor supply chain, supporting R&D activities, ecosystem development, and the attraction of high-quality human resources.

Additionally, the law establishes principles for risk control throughout the lifecycle of AI systems, especially those considered high-risk. Digital technology training policies, including those related to AI, will be integrated into the national education system and implemented across both public and private sectors. This comprehensive approach aims to foster a robust digital technology ecosystem in Vietnam, positioning the country as a key player in the global technology landscape.