VIETNAM CHAMBER OF COMMERCE AND INDUSTRY
Liên Đoàn Thương Mại Và Công Nghiệp Việt Nam
Fri, May 16, 2025, 08:12:00
Experts and policymakers have suggested more new changes in AI and the semiconductor industry in order for the National Assembly to decide on a direction as soon as possible.
| Digital technology rules in need of fresh improvements, photo Le Toan |
Bui Hoang Phuong, Deputy Minister of Science and Technology, emphasised there are currently no legal regulations that cover semiconductors and AI.
“This is the first time we have stipulated this content in the draft law on digital technology,” Phuong said. “Without such regulations, it is impossible to work on preferential policies for investment in semiconductors, strengthening the country’s internal strength in research, manufacturing, and production in the industry.”
The draft consists of nine chapters and 56 articles regulating areas of digital technology such as industry and enterprise development, concentrated digital tech zones, controlled testing mechanisms, semiconductors, AI, digital assets, and more.
Notably, it adds policies for supporting industries in semiconductors, output of related products, and purchase of products and services that meet criteria for design and production in Vietnam.
Experts said that the draft should be adjusted and clarified in some concepts and have appropriate approaches to ensure scientific accuracy, consistency of the legal system, and feasibility when putting rules into practice.
Dr. Nguyen Vinh Huy, vice president of the Ho Chi Minh City Business Association, said that the draft needs to clearly define digital technology, identify areas belonging to the industry, and spell out the difference between digital technology and IT to avoid overlap with current laws.
“Currently, the concept of digital technology still overlaps with other industries such as IT, telecommunications, and cybersecurity. Therefore, it needs to provide a specific definition, covering fields such as AI, big data, blockchain, cloud computing, and the Internet of Things. Clearly defining the scope of application will avoid overlapping with current legal documents, ensuring the consistency of the law,” he explained.
Truong Thi Kim Chi from Quang Trung Software Park Development Co., Ltd proposed to add the “AI system” approach to the production of digital technology products to create improvements without having to explain or prove to state agencies, especially in tax-related issues.
“It is necessary to amend and supplement a number of concepts and terms related to digital technology into the contents of related articles and clauses in a number of other specialised laws to ensure consistency and synchronisation,” she suggested.
For the banking approach, expert Le Thi Ni said that in addition to specific policies, incentives, and support from the state budget for enterprises producing strategic digital tech products, it should study and supplement regulations on the State Bank of Vietnam’s policy of partial support for testing, and profit-sharing policies when projects are successfully implemented.
“It is necessary to add regulations and principles for resolving disputes involving foreign parties in this field, those on the protection of personal data and privacy; prescribe responsibilities, and sanctions for organisations and businesses that violate the protection of users’ personal data among others,” Ni added.
Another expert, Pham Trong Nghia, said that to entice international talent and avoid brain drain at home, preferential policies must be significant.
“There should be added talent policies such as income tax exemptions and reductions for technology experts. The draft has a number of incentives to train and attract people for the digital technology industry through policies such as scholarship schemes, attracting foreign experts, and boosting talent. However, attracting personnel, especially related talent, requires very high international competition,” Nghia said.
According to industry insiders, Vietnam is moving towards a flexible legal framework with controlled pilot to adapt to the rapid and complex development of today’s digital transformation, thus enabling future business and investment initiatives.
Bruno Sivanandan, co-chair of the European Chamber of Commerce in Vietnam’s Digital Sector Committee, said the main objective is to make digital technologies an enabler for trade and cooperation between Europe and Vietnam.
“Today, the increasing complexity of the regulation in Vietnam is a concern for companies that want to operate here. The European Commission has set up many initiatives to support Vietnam at a technical level to harmonise the regulatory landscape with that of the EU. We are the perfect bridge between the public and private sector,” Sivanandan said.
He elaborated that for the semiconductor industry, Vietnam wants to become a hub and Europe hopes to diversify its supply chain. There is ground for collaboration.
“The EU Commission laid out the European Chips Act, and has programmes to support its industry. We are in contact with private companies interested in Vietnam as well. We must work towards preparing a detailed plan to prepare the environment in Vietnam for semiconductor companies (energy, skilled workforce, intellectual property protection, and others). One major asset in Vietnam is the tech champions that are already in place,” he added.
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Nguyen Manh Hung, minister of Science and Technology The practical value of science and technology depends on innovation. Innovation can take advantage of global scientific and technological achievements, then it can bring global tech to approach more of Vietnam’s reality. At this stage, more priority is given to innovation to develop the country quickly. Basic sci-tech is similar among countries, but innovation is very different. It creates national competitiveness and contributes more directly to economic growth than sci-tech, at least for developing countries. Mastering core technology is still difficult for us at this time, but creatively applying core tech to solve Vietnamese problems for the national development is feasible. If we want creativity and innovation to become universal, we must carry out digital transformation comprehensively, digitalising the entire real world and bringing all activities to the digital environment. This environment is ideal for all ideas to be realised the fastest because it is non-physical and non-distance. Pauline Tamesis, resident Coordinator in Vietnam, United Nations Digital transformation and innovation have been named Vietnam’s top strategic priority on the path to high-income status by 2045. It is a powerful signal, backed by a commitment to dedicate 3 per cent of the national budget to science, technology, and innovation. Vietnam’s digital economy now makes up 18.3 per cent of GDP, growing faster than any other in Southeast Asia. Nearly all citizens are covered by broadband, and 5G is scaling fast. Yet, gaps persist: In rural areas, internet usage lags urban areas by 10 per cent. Among women in remote areas, smartphone ownership is 26 per cent lower than among men. And only 10 per cent of girls expect to pursue STEM careers, compared to 24 per cent of boys. Innovation must be inclusive, not selective, and AI is reshaping economies and societies. In Vietnam, 54 per cent of public agencies already use AI, yet only 20 per cent have ethical guidelines in place. This raises fundamental questions: How do we ensure fairness? How do we protect rights? And how do we prevent technology from deepening inequality? Vy Le, chair, Vietnam Private Capital Agency One of the issues that concerns the investment community most is divestment. Funding is just the starting step. Investors all want to earn profits and then that capital can be reinvested in the Vietnamese market. However, in the local ecosystem, in the past 3-4 years, there have been no successful or high-profile divestment deals, while there were many before. This is the most important point right now, and Vietnam should pay attention to. Foreign investors do not lack capital. But if they cannot make successful divestment after about 5-10 years, they will not come to Vietnam any more. We need short-term and long-term plans. For example, Vietnam currently has many large businesses. We need to nurture younger businesses to access capital and then in the next 5-10 years, they will build successful divestment stories. Vietnam is still an emerging market, so we need specific regulations. For example, the legal framework for banking is very specific, but not for the fintech sector. I believe that when there is a specific legal corridor, fintech will draw in more investment. |
