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Politics
09 May 2025

Vietnam National Assembly Discusses New Digital Technology Law

Legislators aim to establish a legal framework for the digital economy and regulate AI and crypto assets.

On May 9, 2025, the National Assembly of Vietnam convened under the leadership of Vice Chairman Le Minh Hoan to discuss various opinions regarding the draft Law on Digital Technology Industry. This meeting, part of the ongoing Ninth Session, focused on the necessity and framework of the proposed legislation aimed at advancing the digital technology sector in the country.

The Committee on Science, Technology and Environment presented a report asserting that the revised draft Law accurately reflects the intended views and objectives for establishing a legal framework for the digital technology industry. This assertion comes amidst concerns about the need for concentrated digital technology zones. Some deputies suggested a thorough review of how these zones relate to existing high-tech zones under the High Technology Law and concentrated information technology zones governed by the Information Technology Law.

The National Assembly Standing Committee clarified that the regulations concerning concentrated digital technology zones in the draft do not introduce new functional zone regulations but rather serve as transitional measures. This is crucial as the information technology industry is expected to evolve into the digital technology sector. Investments in concentrated information technology zones will transition to focus on digital technology industry projects, emphasizing research, development, and production of digital technology products and services.

The shift from the term "concentrated information technology zones" to "concentrated digital technology zones" aims to provide a more comprehensive and contemporary understanding of the evolving digital landscape. Additionally, the draft Law includes provisions for implementation and transitional regulations in Articles 55 and 57, ensuring consistency within the legal framework and the ongoing operations of existing concentrated information technology zones.

The majority of National Assembly deputies expressed their support for the promulgation of the Law on Digital Technology Industry. Deputy Luu Ba Mac from Lang Son emphasized that the draft Law would create a comprehensive legal framework for the digital technology industry, thereby promoting innovation and ensuring security and sustainable development. This is particularly significant as the country intensifies its push towards a digital economy, society, and citizenry.

In discussing the definition of strategic digital technology, Deputy Thach Phuoc Binh from Tra Vinh raised concerns about the open-ended nature of the current listing, which could lead to conflicts in determining preferential policies. He urged for specific criteria to be established, suggesting that the Prime Minister should decide on the list of strategic digital technologies based on recommendations from the Ministry of Science and Technology. This decision should consider factors such as the level of impact on priority sectors, breakthrough potential, productivity, efficiency, and the extent of societal application.

Moreover, the draft Law has been revised to consistently use the phrase "organizations and individuals" throughout its text. It also includes new prohibitions aimed at safeguarding social ethics, health, and human life, while removing the previous prohibition against "producing, supplying illegal digital technology products and services." This change reflects a more nuanced understanding of regulatory needs in the digital landscape.

However, Deputy Tran Van Tien from Vinh Phuc voiced concerns that some provisions in the draft Law remain vague and challenging to enforce practically. He pointed out issues related to the regulations on privacy infringement and other prohibited acts, which he believes need clearer definitions to facilitate enforcement. He suggested that the drafting agency should provide a precise definition of "privacy infringement" and clarify what constitutes "other acts" of violation to aid in effective enforcement.

Concluding the discussion, Vice Chairman Le Minh Hoan highlighted the importance of the deputies' passionate and responsible contributions, stating that these insights would serve as a foundation for the lead agency to further refine and finalize the draft Law on Digital Technology Industry. He urged the relevant agencies to collaborate closely to ensure all feedback is thoroughly considered and addressed before presenting the updated draft to the National Assembly for approval.

In a related development, the draft Law on Artificial Intelligence (AI) was also discussed. According to the draft, AI is designed to enhance human prosperity and happiness, centering on people while improving productivity and efficiency. The use of AI is framed within principles of fairness and non-discrimination, respecting national values and protecting privacy.

State management agencies are tasked with ensuring that AI usage maintains transparency and human oversight, with risk management strategies implemented throughout the AI lifecycle. The Prime Minister is responsible for issuing a strategy for AI development that aligns with the country's evolving context.

The Committee on Science, Technology and Environment believes it is essential to clearly define criteria for high-risk AI, proposing regulations to limit associated risks. AI development is encouraged to incorporate selective international experiences, and products generated by AI must be identifiable.

One significant aspect of the draft law is its provisions regarding crypto assets, which are defined as digital assets utilizing encryption technology for authentication during creation, issuance, storage, and transfer. The draft clarifies that crypto assets do not include securities or digital forms of legal currency.

Management of digital assets encompasses their creation, issuance, storage, transfer, and ownership establishment. Regulatory agencies are required to implement measures to ensure information security and prevent issues such as money laundering and terrorism financing. Furthermore, the draft law stipulates that services related to crypto assets must comply with specific business conditions.

To address current challenges in managing digital assets, the draft law will include sanctions to mitigate risks and handle management issues in cyberspace effectively. On the same day, the Government presented amendments to several draft laws, including those on Planning and Enterprises, while discussions continued regarding the draft Law on Special Consumption Tax.