On December 22, 2024, Vietnam's Politburo issued Resolution 57/NQ-TW on "Breakthroughs in Science and Technology Development, Innovation, and National Digital Transformation," aiming for the digital economy to contribute at least 30% of Vietnam’s GDP by 2030 and 50% by 2045. On January 13, 2025, the Central Steering Committee for Science, Technology, Innovation, and Digital Transformation was established, chaired by General Secretary Tô Lâm, to lead policy implementation and drive breakthroughs.
General Secretary Tô Lâm regarded the development of science, technology, innovation, and digital transformation as the "golden key" to Vietnam’s prosperous development and the best opportunity for success in the new era. He called for allocating at least 3% of the national budget to this mission and increasing spending on science and technology to 2% of GDP over the next five years, up from 0.82% in 2023. By 2030, Vietnam aims to rank among the leading upper-middle-income countries, be a top-three Southeast Asian nation in AI research, and serve as a hub for competitive digital industries. Key objectives include developing world-class digital infrastructure and mastering emerging technologies such as AI, IoT, Big Data, Blockchain, and 5G/6G communications.
In his remarks at the 6th National Forum on the Development of Vietnamese Digital Technology Enterprises on January 15, General Secretary Tô Lâm praised Vietnam’s digital technology sector’s growth with the expansion of digital technology startup ecosystem with nearly 74,000 enterprises, the global reach of 1,900 digital enterprises generating US$11.5 billion in revenue by 2023, and a growing workforce of over 1.67 million. According to the Deputy Head of the Central Economic Commission, Vietnam's digital technology industry is estimated to generate US$152 billion in revenue in 2024, contributing 18.3% to GDP, with hardware and electronics exports estimated at US$132 billion.
However, he also pointed out several limitations hindering the sustainable development of digital technology in Vietnam. Key issues include major weaknesses is the capacity for R&D, which still heavily relies on foreign resources, limiting Vietnam’s technological autonomy, and a shortage of high-tech talents, which impacts innovation. Vietnamese enterprises still have low technological levels and modest participation in the global supply chain.
Despite impressive growth in various sectors, he questioned whether Vietnam is stuck at the lowest segment of the value chain, mainly performing subcontract work for foreign countries. He pointed to the electronics sector as an example, where FDI enterprises export 100% of the value of phones and components but import 89% of the value of those components. For instance, although Samsung has invested in Vietnam since 2008, most first-tier suppliers in Thai Nguyen and Bac Ninh are foreign-owned enterprises (55 out of 60 in Thai Nguyen and 164 out of 176 in Bac Ninh).
He addressed the persistent challenges of regional disparities in digital technology development and emphasized that inadequate investment in digital infrastructure hampers national connectivity and the sustainable growth of the sector. He stressed the need for a clearer understanding of where Vietnam stand in the global value chain, urging efforts to improve international competitiveness. He called for more selective FDI to prevent Vietnam from becoming a low-tech assembly hub.
Prime Minister Phạm Minh Chính, in his speech at the National conference on January 13, reiterated that implementing Resolution 57 is a key political priority for the Government. The Government's Action Program in Resolution 03/NQ-CP includes developing special experimental mechanisms for science, technology, innovation, and digital transformation, with tailored approaches for investment, public procurement, and pilot sandbox testing for new technologies. Notably, the Government will introduce special regulations on nationality, property ownership, visas, work permits, and income to attract and retain top science and technology experts. Additionally, the Government will prioritize the draft Law on Science, Technology, and Innovation, as well as the draft Law on Digital Technology Industry, which will be presented to the National Assembly later this year.
Vietnam's Strategic Push for Regional and International Financial Centers
In November 2024, Vietnam’s Politburo approved the establishment of an international financial center in Ho Chi Minh City and a regional financial center in Da Nang. Shortly after, the government issued Resolution 259/NQ-CP, outlining the action plan for implementing the Politburo's conclusion on the development of a regional and international Financial Center (the “Action Plan”). To oversee this process, an inter-agency Steering Committee was established, chaired by Prime Minister Pham Minh Chinh, with Permanent Deputy Prime Minister Nguyen Hoa Binh serving as the Standing Deputy Head. The Action Plan was formally announced on January 4, 2025, during a conference chaired by Prime Minister Chinh in Ho Chi Minh City.
In addition, a draft resolution on the establishment of regional and international financial centers (the “Draft Resolution”) is being prepared by the Ministry of Planning and Investment and will be submitted to the National Assembly in May 2025.
Ho Chi Minh City has proposed developing a financial center in District 1 and the Thu Thiem new urban area, capitalizing on its status as an economic hub and ongoing infrastructure developments, including a US$67 billion high-speed rail project connecting Hanoi and Ho Chi Minh City. The city's 2021–2030 master plan also includes expanding energy, biotech, and semiconductor production. Meanwhile, Da Nang has proposed a multi-component ecosystem in the core area of Vo Van Kiet and Vo Nguyen Giap streets, spanning over six hectares, with potential for expansion into a financial district. Located in central Vietnam, the Danang center will offer nationwide access to financial services, reduce reliance on a single financial hub, and specialize in green finance, trade facilitation, and fintech. It will also serve as an innovation lab, testing new financial technologies and integrating them into Ho Chi Minhi city’s established ecosystem.
The Government's Action Plan outlined five key objectives including: 1) Developing modern financial infrastructure; 2) Attracting top financial experts; 3) Innovating financial instruments like green finance and fintech; 4) Collaborating with global financial institutions; and 5) Ensuring financial security.
Under the Draft Resolution, several tax incentives has been introduced to attract foreign investors and high-skilled experts, such as:
Managers, scientists, and experts with high professional qualifications working at the financial centers will be exempted from personal income tax (PIT).
Other individuals working at financial center management agencies or financial center member organizations will be exempted from PIT until the end of 2035 and will receive a 50% reduction the taxable income in subsequent years.
Investments in prioritized sectors within the financial centers benefit from a 10% corporate income tax (CIT) rate throughout the project duration. Investments in other sectors within the financial centers are eligible for a 10% CIT rate for the first 15 years. Additionally, these investments are exempt from tax for 4 years and receive a 50% reduction in tax payments for the subsequent 9 years, starting from the date taxable income is recorded.
Income from investments by Forbes 500 companies (listed by year-end before their investment certificate), and fully foreign-owned financial institutions and funds, will be tax-exempt for additional 2 years, with a 50% reduction for the next 4 years.
In addition to financial incentives, supportive immigration policies have been introduced to enhance the business environment for these financial centers. Foreign passport holders investing in or working at a financial center, along with their families, will be issued multiple-entry visas or exempted from entry visas for up to 30 days when working with financial center management agencies.
Notably, under the Draft Resolution, fintech is highlighted as a key sector, with a focus on implementing a “controlled sandbox” policy for virtual assets and cryptocurrencies. Starting July 1, 2026, transactions involving virtual assets and cryptocurrencies will be allowed, subject to licensing, management, and risk oversight by the financial centers’ Management and Operations Committee.
