The Role of the State in Designing the Legal Environment for Digital Technology Enterprises in Vietnam

On June 14, 2025, the National Assembly passed the Digital Technology Industry Law 2025 (DTIL), the world’s first law dedicated specifically to the digital technology industry, which will take effect on January 1, 2026 (with some investment incentives effective earlier, from July 1, 2025). The law establishes a policy framework for artificial intelligence (AI), semiconductors, digital assets, experimental sandboxes, tax and land incentives, and human resource development. On June 26, 2025, the National Assembly further adopted the Personal Data Protection Law 2025 (PDPL), effective from January 1, 2026, elevating data protection standards from decree level to law, while introducing mechanisms for impact assessment, 72-hour incident notification, and cross-border data transfer regulations. These two laws redefine the State’s role shifting from “reactive regulation” to “proactive institutional design and risk-guided governance”, thereby enhancing institutional certainty for digital technology enterprises. This paper updates the context, identifies implementation challenges (overlapping regulations, lack of detailed guidance, and enterprises’ compliance capacity), and proposes a set of policy recommendations regarding inter-ministerial coordination, sandbox design, data AI digital asset standards, prioritization of “Make in Vietnam” public procurement, and sector-specific compliance roadmaps for the Personal Data Protection Law.