How has Vietnam’s regulatory and policy environment evolved over the past few years to attract more digital investment?

Yves Vanderstraeten, vice chairman of the European Chamber of Commerce in Vietnam’s Digital Sector Committee

Vietnam has rapidly upgraded its digital investment framework through major reforms in infrastructure, licensing, data governance, fintech regulation, and startup support.

The country set ambitious digital goals under its 2021 Digital Transformation Programme and 2024 Digital Infrastructure Strategy. These require nationwide fiber, 5G in all industrial hubs, green data centres, e-ID rollout, and platforms for AI, cloud, and big data, creating strong demand for digital and ICT investment.

Recent laws dramatically aim to simplify investment processes. High-tech projects can now be approved in as little as 10–15 days. Digital parks, hi-tech zones, and economic zones receive expanded tax breaks and incentives, significantly lowering investor barriers.

Vietnam introduced a modern data protection regime and new data classifications under the Law on Data 2024. The new Law on Digital Technology Industry will define AI risk categories alongside a draft AI law, recognise digital/cryptoassets, and offer research and development (R&D) incentives. These rules increase compliance needs but create a clearer, more trusted legal environment.

What are the best practices from Europe that Vietnam could adapt to accelerate digital economy development?

First is infrastructure. The EU set very clear national targets for universal gigabit and 5G by 2030, and paired them with strong regulatory tools. The Gigabit Infrastructure Act streamlines permits and obliges telecom companies to share ducts, poles, and towers. Combined with EU funds like CEF and InvestEU, this has accelerated broadband rollout, especially in rural areas.

Second is data governance and cloud. Europe has created a trusted environment for data reuse through the Data Governance Act and the Data Act. These laws enable cross-sector data sharing while keeping strong privacy protections. At the same time, the GAIA-X federated cloud model ensures data sovereignty and avoids vendor lock-in.

Third is digitalisation for smaller businesses. One of the EU’s biggest successes is its network of Digital Innovation Hubs – one-stop centres where small and medium-sized enterprises can test technologies, access training, and get funding advice. Many member states complement this with digital voucher schemes to subsidise cloud services, cybersecurity tools, or AI solutions.

Fourth is innovation funding. The EU invests heavily in R&D through programmes like Digital Europe, Horizon Europe, and the European Innovation Council. What works well is the combination of dedicated funding lines for key technologies and co-funded partnerships between government, industry, and academia.

And fifth is public–private partnerships. Europe frequently uses these to deploy major infrastructure, from supercomputers under the EuroHPC Joint Undertaking to 5G/6G testbeds. These partnerships de-risk investment and accelerate deployment.

What are the new key drivers or motivations that can propel Vietnam’s digital economy in the next 3–5 years?

The new strategic resolutions and decisions from the government signal that high-tech development is now a national priority. For investors, this means something rare in emerging markets: long-term policy stability, faster decision-making, and whole-of-government coordination.

Moreover, with the target of 100 per cent digital ID in 2026, Vietnam is setting the stage for interoperable digital services in finance, health, logistics, taxation, and mobility. This will unlock entirely new markets for European firms in digital public infrastructure, digital finance, digital health, and govtech.

Fast-track licensing, unified digital procedures, the new Digital Technology Industry Law, and stronger data protection rules create greater predictability and transparency. For us, this is a breakthrough: clear rules and faster approvals equal faster investment decisions.

On the other hand, Vietnam is moving from being a digital consumer to digital producer. For example: The semiconductor strategy to 2030 and the plan to train 50,000 chip engineers demonstrates ambition at scale. This creates enormous openings for Europe in R&D partnerships, chip design support, advanced manufacturing equipment, cybersecurity, industrial automation, and vocational training.

The continuing shift is drawing the world’s leading tech firms to Vietnam. Their presence raises the technological baseline and drives demand for industrial software, robotics, and cloud security, all strengths of European industry.

Last but not least, Vietnam’s demographic advantage, combined with rapid upskilling in engineering, AI, and IT, will sustain competitiveness and enable deeper collaboration between European universities, training institutions, and private-sector technology leaders.