ĐÀ NẴNG - Việt Nam has one of the world’s highest rates of cryptocurrency adoption, with an estimated 17 per cent of adults having used digital assets. Yet almost all such activity takes place offshore, beyond the reach of Vietnamese law. Đà Nẵng’s regulatory sandbox is the Government’s attempt to bring it onshore.

For fintech and digital-asset companies considering entering Việt Nam, the initiative is one of the most significant developments in the country’s financial regulation, but also one of the most misunderstood, says Stephen Le, CEO and Lead Counsel of Le & Tran Law Corporation.

What the Đà Nẵng sandbox is

A regulatory sandbox allows a company to test a business model that is not clearly permitted under existing law, under supervision and for a specified period.

Đà Nẵng’s sandbox operates within the Việt Nam International Financial Centre (VIFC), established under Resolution No. 222/2025/QH15, which took effect on September 1, 2025. The centre operates across Hồ Chí Minh City and Đà Nẵng.

Article 24 introduces a sandbox for fintech and innovation, covering business models not yet regulated under Vietnamese law, including those involving blockchain, digital assets and green finance.

How it differs from the existing fintech sandbox

Việt Nam already has a fintech sandbox, but the distinction between the two mechanisms matters. The banking-sector mechanism under Decree No. 94/2025/ND-CP covers specified fintech activities in the banking sector and does not extend to blockchain or digital-asset business models.

Resolution No. 222/2025/QH15 allows trials of models that are not yet regulated. As a result, businesses whose activities fall outside the scope of Decree No. 94 may still be eligible for admission to the sandbox in Đà Nẵng.

This provides a potential route for crypto-to-dong conversion projects to obtain approval in Đà Nẵng when they cannot qualify under the existing banking-sector mechanism.

What is already operating in the sandbox

The VIFC in Đà Nẵng was launched on January 9, 2026, at Software Park No. 2. Basal Pay, a blockchain application that converts assets such as Bitcoin and USDT into Vietnamese dong, received approval for a 36-month controlled trial. It was described as the first blockchain-based payment solution approved for testing in Việt Nam.

A second model, MIMO, followed in early 2026, making Đà Nẵng the only locality in Việt Nam with more than one approved sandbox model for crypto-asset conversion. PayD also joined early, offering a similar service.

These are controlled trials, not permission to operate in a fully open market. Each project runs in defined phases, at designated locations and under regulatory supervision.

Incentives for participants

Participants can access preferential tax treatment under Decree No. 324/2025/ND-CP. For qualifying projects in priority financial sectors, the corporate income tax rate can be reduced to 10 per cent for up to 30 years. Foreign experts and executives may also benefit from personal income tax exemptions on eligible employment income through 2030.

According to Stephen Le, participants may also benefit from greater flexibility in foreign exchange arrangements, the use of English-language documents and accounting standards, subject to applicable regulations.

One caveat is particularly relevant to larger corporate groups: the global minimum tax, which establishes a minimum effective tax rate of 15 per cent for multinational groups within its scope, may limit the benefits such companies derive from the headline 10 per cent rate.

What is still being developed

Resolution No. 222/2025/QH15 establishes the basis for the sandbox but does not set out detailed procedures, application requirements or approval criteria. Approvals have so far been handled on a case-by-case basis rather than through an established process.

The broader regulatory framework is also still developing. Việt Nam began recognising digital assets under the Law on Digital Technology Industry, which took effect on January 1, 2026. A separate pilot programme for the national crypto-asset market is being rolled out, while the tax and accounting treatment of digital-asset transactions is still being finalised.

One point deserves emphasis: the VIFC is a specialised regulatory environment, not a jurisdiction outside Vietnamese law. Its special rules take precedence only where the relevant legislation provides for different treatment. General Vietnamese law continues to apply to all other matters.

Businesses that treat membership as a blanket exemption from domestic regulations misunderstand the framework.

Le & Tran Law Corporation advises fintech and digital-asset businesses on the VIFC framework and Đà Nẵng’s sandbox, including assessments of regulatory eligibility, market-entry structures and controlled-trial arrangements.-VNS