Building on the foundation of Resolution No. 57-NQ/TW, the fast development of the digital economic system is asking for a extra substantive and efficient authorized framework.
For a “sandbox” to really be a launching pad, it wants a transparent hall to nurture technology, coupled with clearly outlined danger boundaries to shield the market.
Opening regulatory pathways, defining the sandbox boundaries
The fast emergence of technology-driven enterprise fashions such as digital property, blockchain, fintech, and synthetic intelligence is creating an pressing want for extra adaptive regulatory oversight. These are all fast-evolving sectors that may generate dangers past the scope of conventional authorized frameworks. As such, regulatory sandboxes have change into a vital surroundings by which new enterprise fashions might be examined beneath managed circumstances earlier than being deployed and scaled up in the actual world.
Building on the route set out in Resolution No. 57-NQ/TW, Vietnam is getting into a interval of great institutional reform. The Law on Science and Technology, along with implementing decrees beneath the Law on Digital Technology Industry, is step by step translating coverage orientations into concrete procedures and mechanisms, thereby offering a authorized foundation for companies to confidently pursue innovation and experimentation.
However, a spot stays between coverage and sensible implementation, and narrowing this hole is essential. According to Dr. Tony Tran, Director of Policy and Innovation on the Global On-Chain Economy Alliance (GOE Alliance), essentially the most urgent requirement for International Financial Centers (IFCs) and regulatory sandboxes within the coming interval is obvious and complete regulatory steering.
The framework might not be good from the outset, however it should present a transparent roadmap so that companies perceive the place they’re headed, what necessities they want to meet, and the way they are going to be evaluated, Dr. Tony Tran mentioned.
Beyond its regulatory operate, the power of a sandbox additionally lies within the synergy throughout the ecosystem. Ms. Tiffany Hoang, Chapter Lead of the Stellar Vietnam fund, recommended the Government’s clear dedication to motion and its proactive efforts to foster an surroundings conducive to testing modern enterprise fashions.
When an ecosystem accepts the potential for startup failure, it creates room for rising applied sciences to be refined and improved. More importantly, shut collaboration amongst stakeholders inside this surroundings will help stop promising startups from failing prematurely, she mentioned.
Risk governance in innovation
Opening the door to innovation doesn’t imply loosening regulatory oversight. A regulatory sandbox have to be accompanied by sturdy risk-control mechanisms from the outset to safeguard customers and buyers.
Mr. Oscar Njuguna, Head of Membership on the Executive Agency of the Vietnam International Financial Center in Da Nang City, mentioned that the sandbox framework has already established a foundational construction. Nevertheless, additional refinement is required to be certain that the framework adequately covers all related stakeholders and clearly defines acceptable danger boundaries.
To operationalize these boundaries, efficient oversight all through the testing course of is crucial. According to Mr. Tran Manh Truc, Investment Director at Do Ventures, every mission taking part within the sandbox ought to be topic to an outlined testing interval and a set of periodic overview standards. Such a mechanism would assist decide which initiatives are eligible to proceed, which require changes, and which ought to be discontinued altogether.
Risk transparency is especially important. Businesses should disclose potential dangers to buyers and customers from the outset, reasonably than ready till issues come up to tackle them. In the innovation course of, failures ensuing from immature applied sciences or markets that aren’t but prepared are an accepted a part of experimentation. However, any try to exploit the testing surroundings for fraudulent or misleading functions have to be clearly distinguished from legit enterprise dangers and handled firmly. This is the defining line that allows a sandbox to stay true to its goal as a “safe testing environment” reasonably than changing into a loophole available in the market.
From a pilot mechanism, Vietnam’s regulatory sandbox is now getting into a stage that calls for substantive implementation. This launchpad will solely generate actual momentum when companies are free to innovate inside a clear regulatory framework, supported by a market that possesses the capability to establish, handle, and eradicate dangers successfully.
By Xuan Quynh, Dieu Huyen—Translated by Kim Khanh