The draft Law on the Digital Technology Industry outlines numerous provisions on concepts and principles for digital assets, AI, the semiconductor industry, and controlled experiment mechanisms (a sandbox), among other things.

On November 23, at the eighth session of the 15th National Assembly, the legislature heard reports from the government and the reviewing agency on the draft.

Deputy Prime Minister Le Thanh Long affirmed that the draft aims to develop the digital technology industry into a major economic sector that contributes significantly to the national economy; and creates the most favorable environment to nurture and develop digital technology businesses.

The development of the digital technology industry focuses on Vietnamese digital technology enterprises, gradually shifting from assembly and processing to innovation, design, integration, production, and mastering core technologies, to contribute to building a digital government and drive the development of a digital economy and a digital society.

The draft affirms the legal value of the digital technology industry, establishing regulations and policies to promote its development.

It comprises eight chapters and 73 articles, clearly outlining the necessary contents for the development of the digital technology industry, including the research and development (R&D) of digital technology; infrastructure for the digital technology industry; an ecosystem for the digital technology industry; digital technology enterprises; digital technology products and services; standards and technical regulations; and human resources for the digital technology industry.

The draft Law stipulates a number of provisions on prioritizing the development of research centers, with high-quality experts and researchers; forming modern research facilities and centers; building and implementing key digital technology R&D programs, focusing on core digital technologies; and having policies to encourage technology groups to invest and establish digital technology R&D centers in Vietnam.

It also encourages the mobilization of social investment resources in combination with State investment resources to build and develop digital technology industry infrastructure, such as the national digital technology industry information system; data processing and storage centers; R&D centers and institutes; and modern, synchronized digital technology zones in accordance with national, sectoral, regional, and local planning.

The draft introduces policies to promote the digital technology industry ecosystem, supporting ecosystem components from research, training, startups, and production to market supply, supporting auxiliary enterprises and domestic and foreign enterprises investing in Vietnam to gradually form a complete domestic ecosystem participating in the global value chain.

In particular, the draft introduces policies to develop the market for digital technology enterprises through prioritized investment, leasing, and the procurement of domestic products and services; developing domestic and international markets for digital technology enterprises; incentives for the production of digital technology products and services by enterprises; and a controlled experiment mechanism to promote innovation by digital technology enterprises.

According to Deputy Prime Minister Long, the Ministry of Information and Communications proposed adding content on digital assets and AI, and adjusting the content on “integrated circuits” to “semiconductors”.