Vietnam unveils new laws; Indonesia strikes deal with UN

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In line with its broader efforts to transform its digital economy, Vietnam has unveiled five pieces of legislation to support this push.

The Vietnamese government unveiled the laws at a press conference, detailing their scope and effect on the country’s economy. All five laws were passed through the 15th National Assembly and are designed to align Vietnam with a previous resolution to achieve mainstream digitalization by 2045.

Experts believe that the Law on Science, Technology, and Innovation will significantly impact Vietnam’s digitalization efforts by prioritizing innovation within the existing national enthusiasm for science and technology.

The Law on Digital Technology Industry establishes a legal framework for adopting emerging technologies in Vietnam. The new legislation formally recognizes digital assets, guaranteeing citizens’ ownership and security rights.

Furthermore, the law supports the rapid infrastructural development of artificial intelligence (AI) and the Internet of Things (IoT). A community reading of the statute reveals a push to establish new data centers, digital technology parks, and national research centers to pursue emerging technology innovation.

Experts are hailing amendments to two laws to align them with the fast-changing technology landscape. The new Law on Technical Standards and Regulations upgrades management approaches to risk assessment and analytics-based inspections, while the amended Law on Product and Goods Quality ensures the highest standard of digital goods sold to consumers.

Finally, the Law on Atomic Energy provides a framework for Vietnam’s pursuit of nuclear energy while reducing the carbon footprint from fossil fuels. A community reading of all the newly minted laws reveals the principle of “one product, one standard” to handle the pressing issue of overlapping regulations.

A push toward digitalization

Before unveiling the five laws, Vietnam had already signaled an intention to embrace digitalization through several national initiatives, including pursuing a blockchain-based national digital ID system and urging small businesses to adopt blockchain and AI.

Furthermore, Vietnamese cities are pursuing digitalization objectives to match the central government’s pace. The largest city, Ho Chi Minh, is investing a significant portion of its budget in blockchain and AI innovation to jolt adoption levels.

Meanwhile, Da Nang is preparing to host an international financial center that pundits say will become the regional hub for digital assets, rivaling Singapore and Hong Kong.

Indonesia joining hands with the UN

A key feature of the collaboration is to integrate emerging technologies into Indonesia’s public services, aligning with President Prabowo Subianto’s ideas for an ultra-modern nation. DEN will spearhead the digitization efforts, leaning on the UNDP for additional support.

DEN and the UNDP will adopt a Digital Public Infrastructure (DPI) approach, supporting existing digital identification and authentication systems. Under the collaboration, parties will attempt to streamline civic registration, like birth, marriage, and death, under a single digital platform.

Furthermore, the partnership will expand to health services and social protection, allowing residents to access the services without the need for extensive paperwork. According to the SoI, the UNDP will support Indonesia’s efforts by offering technical assistance from its deep pool of international experts and offering strategic advisory support.

“This initiative is about improving public service delivery through integration and efficiency, as well as by providing tangible results for our people,” said DEN Chairperson Luhut Binsar Pandjaitan. “With this unified digital system, we are cutting through bureaucracy and ensuring that government services, especially social assistance, reach the right people at the right time.”

With a population of over 200 million and deep Internet and mobile phone penetration, Indonesia’s digital economy is projected to grow by leaps and bounds. Pundits are predicting a leap from fragmented digital platforms to a single national and interoperable system to support the national push toward digitalization.

Racking up early wins with digital transformation

Indonesia has racked up a string of early wins in its digitalization quest, recording impressive digital asset adoption levels to match its Southeast Asian counterparts. The decision to hand over digital currency oversight to the Financial Services Authority (OJK) is considered a significant event for adoption levels in the country.

Furthermore, the digital wallet and prepaid card market in Indonesia is primed for meteoric growth, buoyed by changing consumer behavior and corporate utility. Indonesia has also made significant progress with its central bank digital currency (CBDC) push, concluding a proof-of-concept (PoC) for the wholesale version.

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