Proposal to Expropriate Digital Assets in Special Cases

Digital assets are being introduced for the first time into the scope of state expropriation. The National Assembly requires strict limitations on the subjects of application, as some types of assets may lead to irreversible transactions and be difficult to restore to their original state.

Deputy Minister of Finance Le Tan Can summarizes the draft law. Photo: National Assembly Electronic Portal

On the afternoon of September 22, the National Assembly Standing Committee discussed the draft "Law on Purchase and Expropriation of Assets (amended)", with a notable change being the expansion of the scope to telecommunications infrastructure, information infrastructure, digital infrastructure, and digital assets.

According to Article 22 of the draft, the list of expropriated assets also includes houses, construction works, and assets attached to land; allocated sea areas; livestock; machinery, equipment, and means of transportation, along with several other groups. Compared to the current law, digital assets are a new addition.

Conversely, the scope of purchase - meaning the transfer of ownership to the state - is narrowed down to essential items such as medicines, vaccines, medical supplies, food, fuel, gas, chemicals, raw materials, and consumables. National reserve goods and public assets are not included in this category.

Chairman of the Law and Justice Committee Phan Chi Hieu stated that telecommunications infrastructure, information infrastructure, digital infrastructure, and digital assets are groups of assets that have never been expropriated in Vietnam. The reviewing agency suggested a thorough assessment of the technical characteristics of each type, while also adding mechanisms to ensure data safety and protect third-party rights.

Chairman of the Science, Technology, and Environment Committee Nguyen Thanh Hai particularly noted that not all digital assets can be temporarily used by the state and then returned like physical assets.

During use, they may be transferred, consumed, or undergo transactions that change their value, control rights, or legal status, potentially making them irreversible. Therefore, she suggested clearly identifying which types can have temporary usage rights transferred and then returned or restored to the original owner.

Moreover, the state can only purchase or expropriate when truly necessary for national defense, security, national interests, emergencies, or disaster prevention. The legitimate rights and interests of the owners must be ensured; the purchase price must align with market value, and compensation for expropriation must clearly define the duration, funding source, and payment responsibility.

The Law on Purchase and Expropriation of Assets has been in effect since 2008. After more than 18 years of implementation, Vietnam has not had any cases of purchase, while expropriation has mainly been used during the COVID-19 pandemic.

According to the Ministry of Finance, 8 localities have issued 124 decisions, mobilizing a total of 140 assets for treatment and isolation during the pandemic, including offices, schools, hotels, factories, material warehouses, incinerators, medical equipment, and ambulances.

This amendment occurs as the scope of risks needing response has expanded from national defense and security to diseases, climate change, terrorism, and cybercrime. The government aims to enhance resource mobilization capabilities in emergencies, while also requiring stricter compensation, transparency, and accountability.

The draft also grants the Chairman of the People's Committee at the commune level the authority to decide on the purchase and expropriation of assets in certain cases. The National Assembly Standing Committee generally agrees with this decentralization but requests further review to ensure consistency among regulations.

After the meeting on September 22, the National Assembly Standing Committee agreed that the draft law is ready to be presented to the National Assembly for consideration and approval at the second session of the 16th National Assembly in October 2026.

The proposal to include digital assets in the expropriation category marks a new expansion in the legal framework for this sector in Vietnam. Since the Digital Technology Industry Law was passed in mid-2025, a series of regulations regarding the cryptocurrency asset market have been issued, including:

• Resolution 05/2025/NQ-CP on piloting the cryptocurrency asset market, effective from September 9, 2025, and lasting for 5 years. The resolution lays the foundation for the sale, issuance, trading of cryptocurrency assets, and providing cryptocurrency asset services in Vietnam.

• Circulars 15, 32, and 41 addressing more practical issues such as accounting principles and tax obligations regarding cryptocurrency assets.

• Decree 284/2026/NĐ-CP establishing a separate administrative penalty framework for violations in the cryptocurrency asset market, effective from September 1, 2026.

• Decision 1413/QĐ-TTg approving the overall reform project for Vietnam's financial market until 2045, placing cryptocurrency assets within the same experimental direction for products and services related to cryptocurrency assets, digital securities, and tokenized real-world assets (RWA).

• The Anti-Money Laundering Law includes cryptocurrency assets and related service providers within the framework for controlling money laundering, expanding customer identification obligations, monitoring, and reporting suspicious transactions.

According to the National Assembly Electronic Portal