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The Ministry of Information and Communications (MIC) of Vietnam held a crucial working session with various ministries and agencies to gather feedback on the draft Law on Digital Technology Industry. This session marks a significant step in shaping the future of Vietnam’s digital technology landscape as the draft law is set to be submitted to the Government and the National Assembly for approval.
During the session, Pham Thuy Hanh, Deputy Director of the Government Office’s Legal Department, highlighted two primary areas of focus for the draft law: investment incentives and a mechanism for experimental licensing. According to Hanh, the most critical component in fostering the growth of the digital technology industry is to provide robust investment incentives, including streamlined investment procedures and favourable tax policies. These incentives are essential to ensure that the sector can expand and thrive during this pivotal period of development.
Do Van Su, Deputy Director of the Ministry of Planning and Investment’s Foreign Investment Agency, added that the draft law should include provisions for ‘digital technology zones’. These zones should align with existing laws on industrial parks and economic zones, which are currently being developed by the Ministry of Planning and Investment. Su also recommended that the MIC, as the lead drafting unit, engage professional consulting firms to carefully review each legal provision to ensure the law is comprehensive and effective.
The working session, led by Deputy Minister Bui Hoang Phuong, brought together representatives from key government agencies to gather input on the draft law and ensure it meets the digital technology industry’s needs. The session also aimed to enhance coordination among ministries and agencies for effective implementation and oversight of the law.
One of the key points raised during the session was the need to update Vietnam’s legal framework to keep pace with the rapid advancements in digital technology. The draft law is designed to protect the interests of digital technology enterprises while also contributing to the sector’s growth as a significant economic contributor to Vietnam’s economy.
Previously, under the Prime Minister’s directive, the MIC has been at the forefront of developing the draft Law on the Digital Technology Industry. The ministry has worked closely with related ministries, agencies, localities, and organisations to ensure that the law is comprehensive and meets the needs of the rapidly evolving digital technology sector.
The draft law includes several policies aimed at promoting the development of Vietnam’s digital technology industry. These policies focus on enhancing the industry’s brand, expanding domestic and international markets, and establishing guidelines for investing in and selecting suppliers of digital technology products and services using state funds. Notably, the draft law proposes that the state provide partial financial support for organisations and businesses participating in these initiatives, with support levels ranging from 30% to 80% of the total cost.
In addition, enterprises involved in digital technology projects may be eligible for investment credit from the state, as well as preferential loans from the Vietnam Environmental Protection Fund for projects focused on pollution treatment and environmental protection.
The overarching goal of the Law on Digital Technology Industry is to promote the sector’s development while mitigating potential risks. The MIC acknowledges that the current legal regulations governing the information technology industry, which were issued over 17 years ago, are outdated and no longer suitable for the challenges faced by the industry today.
As Vietnam’s digital technology industry continues to grow, with over 1,500 enterprises generating significant revenue from foreign markets by the end of 2023, the new law is poised to play a crucial role in transforming the sector into a major economic driver for the country.
