Digital assets are rapidly expanding in Vietnam, with adoption levels among the highest in the world. In response, the Government is gradually forging a legal framework and initial tax policies to effectively manage and tap into the economic potential of this market. However, striking the balance between simplicity in the early stages and sustainability in the long run is not an easy task.

A policy turning point Vietnam’s digital asset market has grown rapidly, moving beyond a niche sector to become a significant economic phenomenon with large scale and broad participation. According to reports from reputable blockchain analytics firms, Vietnam is among the countries with the highest rates of cryptocurrency ownership in the world, placing as high as fifth globally. Transaction volumes also reflect the market’s vibrancy. The capital inflow from crypto assets into Vietnam between 2022 and 2024 is estimated to exceed US$100 billion. This figure not only illustrates the interest of individual investors but also highlights a substantial economic resource operating outside the formal financial system, yet not fully recorded in the national economy. According to the Global Crypto Adoption Index by Chainalysis, Vietnam has consistently ranked among the top five countries. Adoption in Vietnam is three to four times higher than the global average, showing that ownership and trading of digital assets have spread across many layers of society. This has created a broad user base and a deep market, painting a clear picture of a country at the forefront of crypto adoption and use. This boom has placed urgent demands on regulators to swiftly establish a suitable legal framework and tax policies in order to manage effectively, harness potential, and steer the sector into becoming a tangible contributor to national revenue. An emerging legal framework For years, the legal environment for digital assets in Vietnam lacked clarity, leaving many ambiguities. However, faced with rapid market growth and potential risks, the State has shifted from a cautious stance to actively developing laws and policies. On June 14, 2025, during its 9th session, the National Assembly passed the Law on Industry and Digital Technology (effective January 1, 2026). For the first time, Vietnamese law has defined digital assets, virtual assets, and crypto assets as a type of property under civil law. This milestone ended years of legal uncertainty and laid the foundation for building other regulatory policies, including tax frameworks. Subsequently, on June 27, 2025, the National Assembly approved a resolution establishing an International Financial Center (IFC), effective September 1, 2025. Under this framework, digital assets are recognized as products and services provided in the IFC. The State has affirmed that special, preferential policies will be applied to encourage and facilitate capital inflows, technology adoption, modern management practices, high-quality human resources, and infrastructure development into the IFC, with the aim of fostering the digital asset market. Notably, the Ministry of Finance has submitted to the Government a resolution on piloting a crypto asset exchange, with blockchain technology as its core. This move demonstrates official recognition of the role of digital asset trading activities and represents a concrete step to put this sector under State management. These measures reflect the Government’s dual objectives. On one hand, protecting users and controlling risks related to cybersecurity, money laundering, and financial stability. On the other, harnessing the economic potential of digital finance to boost fiscal revenues and promote innovation. Establishing a legal framework is not only an urgent requirement for managing a new sector but also a long-term development strategy. It contributes to creating a transparent and fair business environment, attracting investment, and ensuring the sustainable growth of the digital economy. Ministry of Finance’s tax proposal: initial policy choice Amidst the gradual formation of a legal framework for digital assets, the Ministry of Finance has introduced a concrete and practical proposal on taxing related transactions. In the draft Law on Personal Income Tax (replacement), the ministry proposed categorizing income from digital asset transfers as “other income” and including it in taxable income. The rationale provided is that the growth of the digital economy has generated new types of income from such transactions. This is seen as a special form of income, similar to certain irregular income streams already subject to personal income tax. According to the proposal, a tax rate of 0.1% on the transfer value of each digital asset transaction would be applied. This model was chosen due to its similarity with Vietnam’s current tax policy for securities trading. Such alignment indicates a policy direction that prioritizes simplicity in management and convenience in implementation during the initial stage. Taxing based on profits often encounters significant challenges, as it requires determining initial investment costs and actual gains. These challenges are even more pronounced in the absence of a comprehensive database and fully developed management infrastructure. Therefore, applying tax on the total transfer value is seen as a suitable solution, reducing administrative burdens for both taxpayers and regulators. With annual transaction volumes estimated at around US$100 billion, the potential for revenue collection is substantial. Experts from the Vietnam Blockchain Association (VBA) told the press that with a 0.1% tax rate, the state budget could generate over US$800 million per year. This figure underscores the fiscal importance of bringing digital asset transactions under the tax regime—a resource that can be reinvested into essential sectors and strengthen the economy. Implementation challenges and long-term considerations The current context shows that Vietnam faces a policy choice between simplicity in execution and alignment with principles in personal income tax design. The proposed 0.1% digital asset transaction tax is a typical example of prioritizing feasibility and implement ability in the early stage. In essence, this is a form of Financial Transaction Tax (FTT). Its greatest advantage lies in its simplicity. Tax is calculated on the total transaction value, which is easy to determine and collect, especially when applied to centralized exchanges. This approach helps avoid the complexities of identifying cost bases and capital gains—challenges even for tax authorities in developed countries. However, such simplicity comes with significant trade-offs. The Capital Gains Tax (CGT) model, widely adopted in countries such as the U.S., UK, and Australia, is considered economically fairer. It taxes only the actual profits earned by investors. By contrast, FTT taxes even loss-making transactions, which may disadvantage frequent traders and market makers—actors crucial to maintaining market liquidity. In the long run, this divergence may cause Vietnam’s tax policy to lag behind international standards. Especially now, as many global information-sharing frameworks are being developed on the basis of the CGT model—for example, the Crypto-Asset Reporting Framework (CARF) approved by the Organization for Economic Cooperation and Development (OECD). Thus, Vietnam faces an important policy choice: begin with a simple model that can be deployed immediately, or accept initial complexity in pursuit of a more sustainable system aligned with international practices and the economic substance of investment activities. An equally important challenge lies in implementation. Although the Government is building a legal framework and planning for a pilot domestic digital asset exchange, the vast majority of millions of current users still trade through international platforms or informal markets. Therefore, if the tax policy applies only to domestic exchanges, it would skip most of the actual activity, creating a significant enforcement gap. To be effective, the tax policy must address this issue through two approaches. One is to create mechanisms attractive enough to draw most transactions onto regulated domestic platforms. The other is to establish international cooperation channels to monitor transactions made by Vietnamese citizens on foreign exchanges. This challenge highlights that a tax policy cannot operate in isolation. It must be closely linked to an overall management strategy and the international integration process—both legally and in terms of technical enforcement. The rapid growth of digital assets in Vietnam offers great opportunities but also significant policy challenges. Initial steps, such as the proposed 0.1% personal income tax on digital asset transfers, are necessary to establish a basic management mechanism. However, in the long term, Vietnam needs to continue refining its legal and tax frameworks in line with international standards, ensuring fairness, feasibility, and integration. Only then can digital assets truly become a sustainable contributor to the national economy.