Digital tech businesses approach a fresh direction

Hoang Viet Tien, deputy secretary general, Vietnam Digital Communication Association

The draft of the new law introduces a mechanism to rationalise import and export procedures for goods, raw materials, and components related to the semiconductor industry. This system, together with the proposed green corridor mechanism, is expected to reduce logistical barriers, improve efficiency, and support the ambitions of Vietnamese semiconductor companies to reach global markets.

Regarding incentives, many for research and development (R&D) and manufacturing are added to the draft. It provides maximum incentives in terms of investment, tax, finance, credit and land use for organisations and individuals engaged in R&D activities in the semiconductor industry.

These benefits will be extended to semiconductor manufacturing enterprises and those supporting the supply chain, with the aim of creating a solid infrastructure to support the growth of this industry.

Special incentives are also offered for key semiconductor projects, especially those involving the construction of data centres, R&D centres, and semiconductor manufacturing facilities.

To encourage large-scale investment, the draft proposes special incentives for both new and expanded initiatives in the semiconductor industry. These incentives include targeted financial support designed to attract highly influential projects that can drive growth across the industry.

AI is one of the core digital technologies specially regulated in the draft. It provides definitions, management and development principles, and assigns the government to specify this content in detail.

The global AI market size was estimated to have reached $184 billion in 2024. The market size is also expected to show a compound annual growth rate of 28.46 per cent between now and 2030, resulting in a market volume of $826.7 billion by the end of the decade.

In recent years, Vietnam has continued to record remarkable progress, ranking fifth out of 10 countries in ASEAN and 59th out of 193 countries and territories in the Government AI Readiness Index 2023, according to Oxford Insights. This is the third consecutive year that Vietnam has surpassed the global average.

In terms of principles, digital asset management requires a close combination of management processes and technology; integrity and authenticity; information safety and security; transparency and accountability; compatibility with other systems; and ensure intellectual property rights and legal compliance.

Thse draft law is expected to open up opportunities for legal digital asset transactions. It initially stipulates some basic contents on assets such as definition, criteria for determination, management principles and responsibilities of relevant agencies, and the responsibilities and rights of consumers. Specialised ministries continue to provide detailed guidance in each field.

A controlled testing mechanism is an issue of special concern to the business community. It involves permission for controlled testing with limited scope of space, time, scale, and testing subjects for technology convergence products and services, and new business models that are not yet regulated by law or are different from the provisions of current laws.

The state is paying great attention to the draft and to the industry in general, and the incentives and supporting policies will be a huge launch pad for businesses, as they will then have opportunities to cooperate, expand scale, and approach new business methods.

New digital rules to reshape tech market With new rules for the digital technology industry in the pipeline, new development opportunities are expected to open up for businesses.