A speaker at an event promoting digital assets earlier this year in Hanoi. — VNA/VNS Photo Ngọc Bích

 

Vietnam is taking a significant step toward formalising its digital economy, with the introduction of the digital technology industry law, which aims to define and regulate digital assets, according to officials from the Ministry of Information and Communications (MIC) and industry experts.

 

Deputy Director of the MIC's Department of Information Technology and Communications Industry Lê Nam Trung emphasised that the law is designed to institutionalise the country’s policies on developing the information and communications technology (ICT) and broader digital technology sectors. It is expected to enhance productivity, improve economic competitiveness and leverage key technologies from the Fourth Industrial Revolution to address the country’s development challenges.

 

The draft law introduces precise definitions that distinguish digital assets from encrypted assets, aligning with international standards such as those in the United States. According to Trung, these definitions address a critical gap in Vietnam’s digital transformation framework, complementing the country's advancements in establishing a digital government, a digital economy and society, along with digital citizenship.

 

He said the potential of the new law could allow access to a portion of the US$105 billion in annual capital inflows into Vietnam's formal sectors. "This framework will not only attract investment but also mitigate risks such as money laundering, terrorism financing and cyber fraud," he noted.

 

Deputy Director of MIC’s Legal Department, Nguyễn Minh Hằng, said that the law adopts a growth-oriented approach, promoting innovation rather than imposing rigid controls. Given the global diversity of digital assets, comprehensive governance may require amendments to other existing laws, including the Civil Code and the Law on the State Bank of Việt Nam. The Digital Technology Industry Law dedicates nearly 10 per cent of its 73 articles to digital assets, underscoring their importance in Việt Nam’s digital economy.

 

"When digital assets are officially defined and regulated, it will contribute to protecting user rights, minimising risks, promoting the digital economy, attracting investment and enhancing innovation," said Deputy Chairman of the Việt Nam Blockchain Association (VBA) Phan Đức Trung.

 

President of the University of Banking in HCM City, Professor Nguyễn Đức Trung, pointed out that the financial sector will be among the first to experience the transformative effects of digital assets. He anticipates significant changes in existing products and services, as well as the introduction of entirely new asset classes and offerings.

 

"Legal frameworks must strike a balance between fostering innovation and ensuring risk management," he said. "This will create a stable and practical legal environment that supports long-term growth."

 

As Vietnam moves closer to finalising the digital technology industry law, experts and stakeholders said a comprehensive legal framework will position the country as a leader in digital transformation, driving economic growth and technological advancement. 

 

According to data from Triple-A, a cryptocurrency payment gateway licensed by the Monetary Authority of Singapore (MAS), Vietnam ranks seventh globally in the number of cryptocurrency holders. As the number of crypto owners continues to rise, the urgency to establish a comprehensive legal framework for digital assets is greater than ever.

 

Chairman of SSI Securities Corporation Nguyễn Duy Hưng said nations that take the lead in this field drive innovation and secure a strategic position in the global economy. In this context, Vietnam, with its young, tech-savvy population eager to embrace new trends, is well-positioned to become a regional hub for digital asset development.

 

However, the lack of a clear legal framework presents significant challenges for the sector. Hưng noted that blockchain and digital asset enterprises in the country continue to operate under ambiguous conditions, causing them to lose competitive advantages to neighbouring countries like Singapore and Thailand. Moreover, the absence of regulations has made protecting users from fraudulent or non-transparent activities difficult.

 

Senior Programme Manager for Accounting and Law at RMIT University Vietnam, Nguyễn Tấn Sơn, also stated that cryptocurrency transactions are becoming increasingly common, yet the existing legal framework has not kept pace. The State Bank of Vietnam prohibits using cryptocurrencies as legal payment methods, but there are no clear regulations regarding ownership and transactions.

 

“The lack of clear regulations exposes investors to risks such as fraud, market manipulation, or financial losses on unsupervised trading platforms. The inherent anonymity of blockchain technology also heightens the risks of money laundering and terrorist financing. Therefore, establishing a legal framework is essential to promote transparency, ensure safety, and build trust in the market,” Sơn said.

 

He added that regulation should not only aim to mitigate risks, but also foster innovation. A balanced regulatory approach could transform cryptocurrencies into a driver of growth, positioning Vietnam as a blockchain hub and attracting foreign investment to promote sustainable digital economic development.

 

“The country should develop flexible regulatory mechanisms that protect users without stifling innovation, an essential characteristic of digital assets. At the same time, it is necessary to engage in international cooperation in the digital asset sector, leveraging the experiences of developed countries to establish an effective legal framework tailored to Vietnam's specific conditions,” the SSI Chairman said.

 

Hưng recommended that the Government promptly issue a clear and transparent legal framework to regulate activities related to digital assets, thereby building trust among investors and market participants. He also suggested supporting innovative enterprises in the blockchain and digital technology sectors through investment incentive policies, research funding and international collaboration. — VNS

 

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