Vietnam – A New Chapter For Digital Technology Industry
With a view to promote the growth of the digital technology industry as a key contributor to the national economy, the Ministry of Information and Communications (the “MIC”) recently released the first draft of the Law on Digital Technology Industry (the “Draft DTI Law”) for public comments. On the basis of selectively inheriting relevant provisions of the Law on Information Technology (the “IT Law”) and other regulations, the Draft DTI Law aims to tackle various issues in the field of digital technology, with the potential to significantly impact businesses across various industries.
Introducing New Concepts of the Digital Technology Industry
Digital technology, as defined in the Draft DTI Law, includes information technology and new technologies, but is not limited to artificial intelligence (AI), big data, cloud computing, Internet of Things (IoT), blockchain, virtual/augmented reality to digitize the real world, collect, store, transmit, process information, and digital data to serve digital transformation and innovation in all fields. Within this framework, the digital technology industry is also recognized as a foundational industry, representing a high-tech economic and engineering field that produces high-value-added digital technology products and services with impacts across various industries and fields. To reflect the changes introduced by this Draft DTI Law, as regulated by the implementation provision, the term “digital technology industry” will replace “information technology industry” in the applicable IT LAW.
To align with the aforementioned definitions, a concept of “digital technology product” has been stipulated in the Draft DTI Law, which includes information technology products, new technology products, but is not limited to AI, big data, cloud computing, Internet of Things (IoT), blockchain, virtual/augmented reality to digitize the real world, collect, store, transmit, process information, and digital data. It is also noted that manufacturing of digital technology products shall be recognized in the Law on Investment as a business line eligible for investment incentives.
Remarkably, the Draft DTI Law addresses the concept of digital assets, one of the key issues that has attracted attention and sought legal clarification. Accordingly, digital assets are defined as digital technology products, as discussed above, that are created, issued, stored, transferred, and authenticated by blockchain technology, and are legally owned by entities according to the provisions of civil law and relevant laws. This shows the intention of regulators to classify and recognize digital assets as a type of assets under the Civil Code with the nature of property rights. The Ministry of Finance will be assigned to preside over and coordinate with relevant agencies to develop a management policy for this type of asset.
For further information, please contact:
Thai Gia Han, Indochine Counsel
han.thai@indochinecounsel.com
