Vietnam Embarks on Digital Tech Revolution, But Are Rules Ready?

Vietnam stands on the cusp of a digital transformation, poised to redefine its technological landscape and bolster economic growth. Central to these efforts are new rules that aim to usher in fresh advancements in artificial intelligence and the semiconductor industry. However, while the potential is immense, the intricate web of legislative overlaps presents significant challenges that must be untangled to realize these ambitions fully.

Navigating the Legal Labyrinth

Bui Hoang Phuong, Deputy Minister of Science and Technology, highlights the absence of clear legal frameworks for industries pivotal to Vietnam’s digital future—AI and semiconductors. According to Vietnam Investment Review - VIR, without these frameworks, investment policies remain nebulous, stifling growth and innovation.

In addressing this, the proposed draft law on digital technology, comprising nine chapters and 56 articles, seeks to offer clarity. It attempts to define the contours of digital industries, including AI, big data, and cloud computing, to avoid overlaps with existing IT and cybersecurity regulations. As Dr. Nguyen Vinh Huy suggests, this clarity is vital for creating a consistent and cohesive legal system.

A Call for Comprehensive Definitions

Experts argue that clear definitions and demarcations are necessary within digital technology laws to avoid ambiguities that hinder industry growth. Truong Thi Kim Chi from Quang Trung Software Park Development proposes expanding the definition of digital technologies to integrate AI systems seamlessly into production, while Le Thi Ni underscores the need for state-backed financial incentives and clear guidelines on privacy and data protection.

The Talent Conundrum

Talent acquisition remains a pressing issue. To stymy brain drain and attract international experts, the draft considers incentives like tax breaks for technology professionals. However, as highlighted by Pham Trong Nghia, the stakes are high, requiring immediate action to compete on the global stage.

Bridging Gaps for Future Growth

The stakes for Vietnam are significant as it aims to transform its digital economy, which currently comprises about 18.3% of its GDP. Yet, challenges persist, especially in rural areas where internet penetration lags, and among demographics such as women and girls, where participation in STEM fields is notably lower. Innovation, Pauline Tamesis of the United Nations suggests, must be inclusive to ensure it fosters rather than hinders social equality.

Global Collaborations on the Horizon

Bruno Sivanandan of the European Chamber of Commerce pinpoints the collaborative potential between Vietnam and Europe, especially in semiconductors. As the European Chips Act aims to diversify supply chains, Vietnam’s ambitions to become a tech hub align perfectly, creating a fertile ground for partnership and technological synergy.

Innovation as the Linchpin

Ultimately, as Nguyen Manh Hung, Vietnam’s Minister of Science and Technology, notes, the heart of technological advancement lies in innovation. Vietnam’s ability to creatively apply global technologies to local challenges will define its success. The comprehensive digital transformation requires not just legislative reform, but a wholesale digitalization of the environment to unleash the full potential of the nation’s creativity.

Vietnam’s digital narrative is still being written, with the potential and challenges intertwined. The road ahead, though fraught with legislative complexity, offers a vista of unparalleled technological triumphs. The country stands on the brink of a new digital era—one where the right blend of legislation, innovation, and international collaboration could propel Vietnam into a new age of prosperity and global relevance.