Tiếng ViệtThe Law on Digital Transformation, which took effect on July 1, fills a missing piece in Vietnam’s legal framework by establishing a unified legal foundation for building a digital nation.
The law was passed by the National Assembly in December 2025, making Vietnam one of the first countries in the world to enact a standalone law on digital transformation.
According to the drafting agency, Vietnam has spent many years implementing digital transformation while gradually improving the legal framework through a number of sector-specific laws, including the Law on Electronic Transactions, the Law on Telecommunications, and the Law on the Digital Technology Industry. However, these laws remained fragmented and lacked a unified framework to systematize the common principles and strategic direction for building a digital nation. This was the reason for the introduction of the Law on Digital Transformation.
Demonstration data displayed at an intelligent operations center serving the digital government. Photo: Trong Dat.
The law consists of eight chapters and 48 articles. It was developed as a framework law, connecting existing sector-specific regulations while supplementing missing areas such as the digital economy, digital society, and digital transformation infrastructure. It also establishes a national coordination mechanism for issues that extend beyond the scope of individual sector-specific laws.
Standardizing Digital Transformation Concepts
According to the National Digital Transformation Agency, one of the most notable features of the law is that it is the first time Vietnam has established a comprehensive and unified system of concepts related to digital transformation.
A representative of the drafting agency said that, in the past, many concepts associated with digital transformation had been widely used but lacked a common legal basis for reference. The new law not only clarifies these concepts but also defines what constitutes digital transformation activities, providing a legal basis for ministries, sectors, and local authorities to implement them.
Based on this foundation, the law establishes national-level coordination instruments, including the National Digital Transformation Program, the National Digital Architecture Framework, the Data Governance Framework, the Digital Competency Framework, and a unified set of indicators. These are important tools for coordinating and organizing digital transformation nationwide.
For digital systems, the law sets out design principles and general requirements aimed at developing intelligent digital systems that proactively serve citizens, rather than merely providing services through a one-way, passive approach.
Special Financial Provisions
In addition to clarifying key concepts, the Law on Digital Transformation is also the first legislation to establish a legal basis for funding digital transformation by stipulating that at least 1% of the annual state budget must be allocated to digital transformation.
According to the drafting agency, this provides a foundation for ministries, sectors, and local authorities to develop tasks, projects, and programs, as well as allocate resources for digital transformation.
A robot assists citizens at the Hanoi Public Administrative Service Center. Photo: Tung Dinh.
To narrow the digital divide, the State will prioritize allocating digital transformation resources at levels higher than the national average for border areas, islands, ethnic minority communities, mountainous regions, and areas with difficult or especially difficult socio-economic conditions.
The law also introduces a separate mechanism for investment and procurement projects involving systems that are not yet available on the market or have no precedent. These projects are often difficult to define at the outset and difficult to value. Accordingly, the law provides funding for the development and testing of products, goods, or systems that are not commercially available, while also establishing procedures for selecting implementation providers.
In addition, the State will introduce financial support measures and other forms of assistance for small and medium-sized enterprises (SMEs), cooperatives, and household businesses to carry out digital transformation and participate in the development of the digital economy.
Source: vnexpress.net
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