VIETNAM Trends and Developments Contributed by: Tung Ngo, Ngan Nguyen, Hien Tran and Quynh Chi Nguyen, VILAF
including the Law on Digital Technology Industry and related investment and tax amendments, have established a structured legal foundation for digital technologies, data infrastructure, semiconductors and digital assets. Key trends include: • expansion of digital infrastructure, particularly large-scale data centres, cloud computing and supporting platforms; • accelerated adoption of artificial intelligence and advanced digital technologies, supported by dedi - cated governance frameworks; • formal recognition and regulation of digital assets, including tokenised assets, for the first time under Vietnamese law; • development of digital technology parks and inno - vation zones designed to attract high-tech invest - ments and support ecosystem integration; • introduction of targeted investment incentives, particularly for semiconductor manufacturing, AI applications and digital infrastructure projects, including preferential tax treatment and streamlined procedures. In addition, certain strategic digital projects ben - efit from accelerated implementation mechanisms that allow earlier execution by bypassing traditional approval processes. At the same time, regulatory expectations are increasing. Greater emphasis is placed on data governance, cybersecurity, transpar - ency and risk management, particularly regarding AI systems and digital platforms. For investors, the digital economy presents significant opportunities across data infrastructure, semiconduc - tors and emerging digital asset markets. However, the evolving regulatory landscape requires careful align - ment between global operational models and Viet - nam-specific compliance requirements, particularly in areas such as data control, licensing and technology governance. Energy Transition and Power Market Reform Vietnam’s energy sector is undergoing a structural transformation driven by rapid economic growth, industrialisation and rising energy demand, alongside
its commitment to achieving net-zero emissions by 2050. The regulatory framework underpinning this transition is anchored in the revised Power Development Plan 8 (PDP8) and the Electricity Law (2024), which together establish a comprehensive roadmap for decarbonis - ing the power sector, strengthening energy security and modernising market structures. Key trends emerging from this framework include: • accelerated expansion of renewable energy, with solar, wind (including offshore) and biomass form - ing the core of future capacity growth; • progressive reduction of coal dependency, with caps on coal-fired capacity and long-term transi - tion toward cleaner energy sources; • large-scale investment in grid infrastructure, smart grids and energy storage to address capacity con - straints and integrate renewable generation; • introduction of more market-oriented mechanisms, including direct power purchase agreements, ena - bling large consumers to procure renewable energy directly; • increasing alignment with ESG and sustainable finance frameworks, supporting investment in green energy and infrastructure. The scale of investment required is substantial, with PDP8 estimating capital needs of approximately USD136.3 billion for the period from 2026 to 2030. Despite strong policy direction, investors continue to face regulatory and practical challenges, includ - ing evolving tariff mechanisms, grid curtailment risks and bankability concerns in power purchase arrange - ments. These factors remain critical considerations in structuring and financing energy projects. ESG, Carbon Markets and Sustainable Supply Chains Sustainability is becoming a core consideration in Vietnam’s investment and regulatory environment, with ESG compliance, carbon market development and sustainable finance frameworks advancing along - side broader economic transformation.
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