Vietnam To Introduce Digital Technology Industry Law That Would Boost The Tech Sector
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- 11 Oct 2024
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Vietnam is taking a significant step towards strengthening its digital technology sector with the introduction of the Digital Technology Industry Law, which seeks to provide a legal framework to boost innovation in key areas such as semiconductors and artificial intelligence (AI). The draft law was presented for the first time to the National Assembly Standing Committee on October 8, 2024, with the goal of transforming the digital technology industry into a critical driver of the country’s economy.
In his presentation, Minister of Information and Communications Nguyen Manh Hung emphasized that the law aims to shift the country from relying on assembly and outsourcing to focusing on creation, design, integration, and mastering core technologies in Vietnam. This transformation is seen as essential for building a digital government and driving the growth of both the digital economy and digital society.
Key Focus Areas of the Draft Law
Semiconductors and AI:
- The draft law highlights semiconductors as a priority sector. The term "microchip industry" will be replaced with "semiconductor industry", covering the entire scope of activities related to semiconductors.
- The law introduces a specific chapter on artificial intelligence (AI), defining its principles and outlining guidelines for its ethical, transparent, and secure development. AI must promote human prosperity, safeguard privacy, and ensure fairness and accountability.
Digital Assets:
- A section on digital assets defines them as intangible assets represented by digital data, protected under intellectual property and civil law. The law recognizes these assets as part of Vietnam's drive towards a more digitally integrated economy.
Research and Development (R&D):
- The law provides incentives for the development of high-quality research personnel and encourages the establishment of advanced research centers and laboratories. This is part of a broader strategy to advance digital infrastructure, support the growth of a digital ecosystem, and foster digital technology enterprises.
Controlled Experimentation Mechanism:
- Chapter 4 of the draft outlines the principles for controlled experiments, including the authorities responsible for granting permissions and exemptions for participating entities. This is designed to foster innovation and experimentation in the digital sector while managing risks.
Preferential Policies and Incentives
The draft law introduces a set of preferential policies for the digital technology industry, building on existing regulations for investment, taxes, and high-tech projects. Key projects in AI, semiconductors, and data processing centers will receive additional focused incentives, further stimulating the country’s push into these advanced sectors.
Alignment with Government Policies
The National Assembly’s Science, Technology, and Environment Committee, led by Le Quang Huy, expressed general agreement with the draft law, noting that it aligns with the Party’s guidelines and government policies. However, the committee recommended clarifying how the new Digital Technology Industry Law will relate to the existing Information Technology Law to avoid overlapping or conflicting regulations.
This new law is expected to play a pivotal role in accelerating Vietnam’s digital transformation, fostering innovation, and positioning the country as a competitive player in the global tech landscape.
