Consolidated Document No. 20/VBHN-VPQH: Law on Digital Technology Industry (Consolidating Amendments Through 2025)
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Consolidated Document No. 20/VBHN-VPQH, issued by the National Assembly Office on February 12, 2026, combines the Law on Digital Technology Industry (No. 71/2025/QH15, effective January 1, 2026) with amendments made by the Law on Cybersecurity (No. 116/2025/QH15, effective July 1, 2026) and the Law on Artificial Intelligence (No. 134/2025/QH15, effective March 1, 2026). It is Vietnam's first comprehensive legal framework for the digital technology industry, the semiconductor industry, and digital assets. The law sets out a wide range of tax and investment incentives that SMEs, foreign investors, and tech workers should know about. Businesses can claim an increased deduction for digital tech research and development spending when calculating corporate income tax (CIT). Production of key digital products and services, semiconductor chips, artificial intelligence systems, and AI data centers qualifies as a special investment incentive sector, unlocking CIT, land, and customs benefits. Export processing enterprises in the semiconductor supply chain get on-spot import and export procedures and protection against double taxation. Most notably, salaries and wages of high-quality digital tech personnel are exempt from personal income tax for 5 years from the first employment contract, if they work in a concentrated digital technology zone or on key chip or AI projects. The law also establishes Vietnam's first legal framework for digital assets (virtual assets and crypto assets), and automatically converts existing concentrated IT zones into concentrated digital technology zones eligible for incentives equivalent to areas with especially difficult socioeconomic conditions. The financing and investment-incentive provisions (Articles 11, 28, 29) already took effect on July 1, 2025; the rest of the law took effect January 1, 2026.
Scope and Purpose of Consolidation
Consolidated Document No. 20/VBHN-VPQH, certified by the National Assembly Office on February 12, 2026 and published in Official Gazette No. 133 dated February 28, 2026, compiles the full text of the Law on Digital Technology Industry (Law No. 71/2025/QH15, passed June 14, 2025, effective January 1, 2026) together with amendments, additions, and repeals made by:
- Law on Cybersecurity No. 116/2025/QH15 (passed December 10, 2025, effective July 1, 2026);
- Law on Artificial Intelligence No. 134/2025/QH15 (passed December 10, 2025, effective March 1, 2026).
The law governs the development of the digital technology industry, the semiconductor industry, artificial intelligence, and digital assets. It applies to domestic and foreign organizations and individuals connected to Vietnam's digital technology industry (excluding activities purely for national defense, security, and cryptography protecting state secrets).
Development Policy and State Management (Chapter I)
The State commits to mobilizing investment in shared infrastructure, land, credit, and tax incentives for digital tech research and production, a controlled testing (regulatory sandbox) mechanism that exempts participants from liability during trials, and exceptional incentives for the semiconductor industry. The Ministry of Science and Technology is the lead state management agency, coordinating with other ministries and provincial People's Committees. Financing for industry development comes from the state budget (science, technology, and innovation funds; development investment spending; the Investment Support Fund) and private or social capital (Article 11, already effective from July 1, 2025).
Tax, Investment, and Customs Incentives for Businesses
This is the section most relevant to SMEs and investors:
- Digital tech R&D spending: businesses get an increased deductible amount when calculating CIT taxable income (Article 16).
- Producing or supplying digital technology products and services is an investment-incentivized business line. Key digital products and services, software, AI systems, semiconductor chips, and AI data centers are special investment-incentivized sectors, eligible for CIT and land incentives under the Investment Law (Article 28, already effective from July 1, 2025). Large-scale projects may qualify for special investment support.
- Semiconductor, chip manufacturing, and AI data center enterprises get customs priority treatment and may import used production lines and equipment for manufacturing or R&D meeting criteria set by the Ministry of Science and Technology.
- Export processing enterprises in the semiconductor supply chain (chips, electronic equipment, direct supporting products) get on-spot export and import procedures; foreign traders' income from these transactions is subject to CIT but protected against double taxation (Article 40).
- Digital-tech innovative startup projects are a special investment-incentivized sector, eligible for local-budget funding (Article 29, effective from July 1, 2025) for training, R&D, startup consulting, and technology acquisition.
- State agencies get priority for direct contractor appointment and can place orders for key digital products supporting national digital transformation tasks.
High-Quality Digital Technology Personnel
- Foreign nationals meeting high-quality personnel criteria get a 5-year, renewable temporary residence card, extended to spouses and children under 18.
- Salaries and wages are exempt from personal income tax for 5 years from the first employment contract if the person works on a project in a concentrated digital technology zone, on R&D or production of key digital products, semiconductor chips, or AI systems, or in digital tech training activities (new Clause 17, Article 4 of the Personal Income Tax Law).
- Qualifying civil servants and public employees can be hired or promoted without competitive exams; those who moved to the private sector are given priority to return to public service.
- The Labor Code gains a new Clause 8a in Article 154 with dedicated provisions for high-quality digital tech personnel.
Concentrated Digital Technology Zones
The law sets conditions for establishing, expanding, and recognizing concentrated digital technology zones (Articles 22-25). These zones get investment incentives equivalent to areas with especially difficult socioeconomic conditions, land rent exemptions or reductions, and connecting-infrastructure support. Existing concentrated IT zones automatically convert into concentrated digital technology zones (Article 51).
Semiconductor Industry (Chapter III)
The law sets development principles and strategy, and covers R&D, raw material production, design, manufacturing, packaging, and testing of semiconductor products. Special mechanisms include special investment incentives for encouraged semiconductor materials and equipment, funding for training, R&D, and pilot production for chip design projects, and import of used equipment.
Digital Assets (Chapter V)
For the first time, the law legally defines digital assets (digital data created, stored, transferred, and authenticated via digital technology), covering virtual assets (used for exchange or investment) and crypto assets (authenticated using cryptographic technology), excluding securities and digital forms of legal tender. The Government will issue detailed rules on licensing conditions for crypto-asset service providers and anti-money-laundering and counter-terrorism-financing measures.
Amendments to Related Laws (Article 49)
- Repeals parts of the Information Technology Law No. 67/2006/QH11.
- Adds Clause 17, Article 4 of the Personal Income Tax Law (the 5-year PIT exemption above).
- Adds Clause 8a, Article 154 of the Labor Code.
- Replaces the term "concentrated information technology zone" with "concentrated digital technology zone" throughout the Land Law, the Capital Law, the Urban and Rural Planning Law, the Investment Law, and several National Assembly resolutions.
Effective Dates
The law generally takes effect January 1, 2026, but Article 11 (financing) and Articles 28 and 29 (investment incentives) already took effect July 1, 2025. Where this law's incentives are more favorable than another law on the same matter, businesses get the more favorable treatment. Chapter IV (artificial intelligence, former Articles 41-45) has been repealed and replaced by the standalone AI Law (effective March 1, 2026, with 12 to 18 month transition periods for AI systems already in operation). The Cybersecurity Law (effective July 1, 2026) replaces the 2015 Network Information Security Law and the 2018 Cybersecurity Law.