Vietnam Business News: Week in Review (17 Oct 2025)

Vietnam has quickly become one of Asia’s most dynamic economies, offering foreign investors and entrepreneurs an attractive environment for growth. With its ongoing regulatory reforms, digital transformation, and focus on compliance, doing business in Vietnam is no longer just about market entry - it’s about understanding how innovation and law interact to create sustainable opportunities.

This week’s Vietnam business update highlights key developments:

• The proposed Digital Transformation Law targeting high-tech crime prevention.
• The launch of a National Venture Capital Fund to support startups and innovation.
• Amendments to the Insurance Business Law, easing market entry but reinforcing post-check mechanisms.
• A potential ban on deepfake AI content under the revised Cyber Security Law.
• The High-Tech Law revision, introducing R&D tax incentives to fuel technological growth.

United Consulting provides regular business updates to highlight the most important shifts affecting entrepreneurs, SMEs, and foreign investors. Whether you’re already doing business in Vietnam or exploring new Business & Investment opportunities, staying ahead of these changes will help you navigate compliance and seize growth potential. Follow us on LinkedIn or Facebook to always stay up to date! 

Digital Transformation Law: Strengthening Vietnam’s Defense Against High-Tech Crimes

Vietnam’s draft Digital Transformation Law aims to establish an integrated legal foundation for the country’s digital future. The National Assembly Standing Committee recently reviewed the draft, emphasizing the need for a comprehensive legal framework that aligns existing laws and closes regulatory gaps.

A central issue raised by the Committee on Deputy Affairs, led by Nguyễn Thanh Hải, was the need to address emerging high-tech crimes. These include:

• Using AI to create fake or misleading content
• Exploiting blockchain vulnerabilities for illegal gain
• Developing cyber-attack tools that threaten digital infrastructure

The draft law is structured around key pillars:

• Digital Infrastructure: Ensuring secure and reliable systems to support economic activities.
• Digital Government and Economy: Promoting efficient governance and digital business models.
• Digital Society: Encouraging participation in safe and inclusive online environments.

It also defines prohibited actions, particularly those threatening national security through misuse of digital platforms.

The Committee urged clarification of ambiguous terms like “sensitive data” and “serious damage” and recommended further study of AI-driven digital consultation tools, which are becoming prevalent in Vietnam business operations.

If enacted, this law will be crucial for compliance in Vietnam’s digital economy, guiding how businesses manage data, automation, and cyber risks.

National Venture Capital Fund: Fueling Vietnam’s Startup and Innovation Ecosystem

Vietnam is strengthening its innovation ecosystem through Decree No. 264/2025/NĐ-CP, which establishes the National Venture Capital Fund and allows for local-level funds across provinces.

Key highlights include:

• Initial state investment: At least VND 500 billion from the Ministry of Science and Technology’s budget.
• Capital goal: Achieve a chartered capital of VND 2,000 billion within five years by combining state and private investments.
• Investment focus: High-tech, digital, strategic, and green technologies.

The fund’s objectives are twofold:

1. Support innovative startups with high growth potential.
2. Promote local and national startup ecosystems through co-investment and ecosystem-building programs.

Importantly, the fund operates on market principles - balancing controlled risks with transparency and efficiency. Up to 5% of annual after-tax profits can be reinvested to support innovation ecosystem development.

For foreign investors and entrepreneurs doing business in Vietnam, this fund signals strong government backing for innovation and an opportunity to participate in Vietnam’s high-growth sectors.

Insurance Business Law Amendment: Deregulation with Stronger Oversight

The proposed amendment to Vietnam’s Law on Insurance Business introduces a more open yet controlled regulatory environment. The Economic and Financial Committee supports deregulation to ease market entry but warns of potential legal and compliance risks if not paired with robust post-check mechanisms.

Key Proposed Changes:

• Relaxed establishment and operation conditions for insurance enterprises to encourage competition.
• Replacement of the term “inspection” with “examination” for legal clarity.
• Clarification of cross-selling rules for health insurance products by agents.
• Proposed delay in implementing the Risk-Based Capital (RBC) model - from 2028 to 2031.

However, the Committee emphasized that removing pre-conditions must be matched with strong internal control and risk management systems to prevent supervision gaps.

This highlights a crucial shift in Vietnam compliance: businesses will be trusted with more autonomy but held accountable through rigorous post-regulatory checks. Companies entering the insurance or financial services sectors must therefore strengthen governance and compliance frameworks early on.

Cyber Security Law: Vietnam Moves to Ban Deepfake AI Content

Vietnam’s draft Cyber Security Law - which consolidates policies from the existing Cyber Security Law and the Law on Network Information Safety - marks a significant step toward tackling AI-generated misinformation and deepfake content.

Proposed Prohibitions:

• Using AI to create, edit, or distribute false, defamatory, or harmful information.
• Forging identities, biometric data, or images to impersonate others.
• Misusing AI-generated content to threaten national security or personal rights.

The draft also introduces stricter data security requirements, mandating that:

• Service providers must assign identifiable IP addresses for state security purposes.
• Government agencies allocate at least 10% of their IT development budgets to cybersecurity measures.

These changes are crucial for companies doing business in Vietnam’s digital environment, particularly those in technology, media, and e-commerce, as they redefine the boundaries of lawful digital conduct.

High-Tech Law Revision: Boosting R&D with New Incentives

Vietnam’s Law on High Technology is being overhauled to promote research, innovation, and investment within a transparent and competitive framework. The goal is to align Vietnam business policy with global standards and stimulate domestic R&D capacity.

Major Updates Include:

• Introduction of a “super tax deduction” for R&D expenses, allowing companies to deduct an amount higher than their actual costs when calculating taxable income.
• Expansion of incentives to include science and technology organizations, R&D centers, and high-tech enterprises in strategic areas such as AI, semiconductor chips, and advanced materials.
• Clearer criteria for high-tech zones, ensuring these zones serve as hubs for research, training, and technology transfer.

This revision not only encourages private-sector participation in innovation but also embeds high-tech development as a core pillar of Vietnam’s economic strategy.

For investors and technology firms doing business in Vietnam, these incentives make the country increasingly attractive as a regional R&D destination.

What These Changes Mean for Businesses in Vietnam

The ongoing legislative reforms demonstrate Vietnam’s commitment to creating a modern, transparent, and innovation-driven economy. However, they also underscore the importance of proactive compliance and adaptation.

Businesses should:

• Monitor upcoming regulatory changes - especially in digital transformation, cybersecurity, and insurance sectors.
• Review internal compliance frameworks to align with post-check requirements.
• Leverage new incentives under the high-tech and venture capital laws to enhance competitiveness.
• Invest in cybersecurity and AI ethics policies to meet upcoming regulatory expectations.

Whether you’re a local SME or a foreign investor doing business in Vietnam, these reforms will shape how you operate, innovate, and stay compliant in the years ahead.

Final Thoughts: Navigating Vietnam’s Compliance Evolution

Vietnam’s legal updates - from digital governance to high-tech investment - reflect a forward-looking approach that balances innovation with accountability.

For businesses, this is both a challenge and an opportunity: success in Vietnam’s evolving business environment will depend on understanding regulatory shifts and integrating compliance into strategy - not as an obligation, but as a competitive advantage.

Need help navigating Vietnam’s new business and compliance landscape?

United Consulting can help you interpret regulations, implement compliant frameworks, and seize new investment opportunities in Vietnam.

📞 Contact United Consulting today for expert guidance on doing business in Vietnam.