Brian Jeffrey
This morning, Deputy Prime Minister Le Thanh Long presented a refined proposal for the Digital Technology Industry Law to the National Assembly. The law is structured into 8 chapters and 73 articles, with the goal of enhancing the digital technology sector as a significant part of Vietnam’s economic landscape.
The objectives of the proposed legislation include:
Creating a conducive environment for tech businesses.
Helping Vietnamese companies evolve from mere assembly and outsourcing to engaging in innovation, design, integration, production, and mastery of essential technologies domestically.
Supporting the establishment of a digital government and the advancement of the digital economy and society.
Deputy Prime Minister Le Thanh Long stated that this new law would supersede existing provisions concerning IT and services in the current Information Technology Law, while also integrating updated regulations that reflect modern advancements.
The draft aims to embody the directives from the Party and the State’s policies surrounding the development of the digital tech sector. It addresses existing gaps by evaluating current legal frameworks and proposing effective policies to form a transparent legal landscape for digital products and services.
The proposal highlights essential components necessary for promoting the digital technology sector, such as research and development (R&D), infrastructure, ecosystems, products, services, technical standards, and human capital.
Key focus areas include:
Encouraging robust R&D and nurturing a talented workforce of experts and researchers.
Building contemporary research facilities and laboratories.
Creating markets for digital technology firms through investment incentives and preferential procurement of locally produced goods and services.
The draft also defines artificial intelligence (AI) as a pivotal component of digital technology, putting forth principles for its governance and development, which will be overseen by the Government. These principles include:
Transparency and accountability.
Equality and non-discrimination.
Adherence to ethical standards, privacy, inclusivity, and security.
Governance based on risk evaluation and international collaboration.
In relation to semiconductors, the draft broadens its scope from just “semiconductor chips” to the entire “semiconductor industry,” covering all phases of manufacturing and in line with national development objectives.
Le Quang Huy, Chairman of the National Assembly’s Committee on Science, Technology, and Environment, highlighted the necessity of a regulatory framework for AI advancement:
“Vietnam requires legal foundations to leverage the benefits of AI while addressing its potential negative effects on the economy and society.”
The committee is in favor of the draft but suggests incorporating additional provisions to tackle AI-related risks, including ethical guidelines and frameworks for leveraging state data for AI research and development by local firms.
The committee also emphasized the importance of establishing policies to support and incentivize digital technology companies, such as:
Attracting foreign investments and financial support.
Providing reasonable tax benefits.
Allocating budget resources for R&D in digital technologies, particularly targeting state-owned enterprises equipped to develop nationally prioritized products.
Additionally, the committee proposed controlled testing mechanisms for digital offerings, recommending:
Setting limits on trials to safeguard markets and consumers.
Providing legal immunity for civil, administrative, and criminal responsibilities during controlled tests and related activities.
Expanding the scope of trial subjects from “digital convergence products and services” to encompass “digital technology products and services.”
