Vietnam Legalizes Digital Assets, Aims for Global Tech Hub Status

The National Assembly of Vietnam approved the Law on Digital Technology Industry on June 14, marking a significant milestone in the country's digital transformation journey. This legislation brings digital assets under regulatory oversight and is set to take effect on January 1, 2026. The law recognizes crypto assets and establishes a foundation for broader digital innovation across the nation.

Under the new law, digital assets are classified into two categories: virtual assets and crypto assets. Both categories rely on encryption or digital technologies for validation and transfer, but they do not include securities, digital fiat currencies, or other financial instruments. The government is now responsible for outlining specific business conditions, classifications, and oversight mechanisms for these asset types.

The legislation also mandates robust cybersecurity and Anti-Money Laundering safeguards aligned with international norms. This effort is likely aimed at addressing concerns from the Financial Action Task Force (FATF), of which Vietnam has been on the "gray list" since 2023.

Beyond the regulation of cryptocurrencies, the new law signals Vietnam's ambition to become a digital tech hub. It introduces sweeping incentives for enterprises working in artificial intelligence, semiconductors, and digital infrastructure. These incentives include tax breaks, land-use benefits, and research and development support, particularly for firms building core technologies like chip design and AI data centers.

Regional governments are directed to support workforce development through subsidies and training programs, while education policies will integrate digital tech skills into national curricula. This comprehensive approach aims to foster a skilled workforce capable of driving innovation and competitiveness in the digital economy.

Vietnam's move to legalize digital assets and promote digital technology innovation is part of a broader effort to modernize the country's digital infrastructure. The National Data Association under the Ministry of Public Security has developed NDAChain, a national blockchain platform designed to provide secure, decentralized, and transparent infrastructure for digital identity, data transactions, and digital transformation applications.

NDAChain uses a Permissioned Blockchain platform with a Proof of Authority (PoA) consensus mechanism to ensure quick, safe, and transparent transactions. Zero-Knowledge Proof (ZKP) technology helps authenticate identity without revealing personal information, maximizing privacy protection.

NDAChain is designed to comply with current legal and technical standards in Vietnam and possesses seamless integration capabilities with e-government systems, banks, and corporate organizations. This strategic move helps Vietnam own independent technology infrastructure, gradually forming a sovereign, transparent data market that aligns with domestic cultural and legal characteristics.

The national Decentralized Identifier system - NDA DID is designed according to the Decentralized Identity (DID) model, allowing each individual or organization to have full control over their identity information without depending on any intermediary. This solution helps prevent information forgery, electronic fraud, and privacy violations, creating a trusted platform for deploying multiple digital services in the future.

The legalization of digital assets in Vietnam is a significant development that reflects the country's commitment to embracing digital technology and innovation. The new law provides a clear legal framework for digital assets, which is expected to attract more investment and innovation in the digital asset space. The development of NDAChain and the national Decentralized Identifier system further demonstrates Vietnam's capability to master core technologies approaching global standards. This move is expected to position Vietnam as a leading player in the global digital economy.