Experts urge Hanoi to speed up regulatory sandbox 

THE HANOI TIMES — Experts, scientists and policymakers have urged the Hanoi People’s Council to adopt a resolution on regulated pilot projects, calling it a crucial step to unlock innovation and digital transformation.

This feedback was shared at a consultation conference hosted by the Vietnam Fatherland Front of Hanoi on July 29.

The draft resolution would bring the Politburo’s Resolution No. 57-NQ/TW on breakthroughs in science, technology, innovation, and digital transformation to life, as well as provisions under the 2024 Capital Law.

It would provide a legal basis for organizations and businesses to trial new products, services, and business models under state management.

Results from these regulated trials would be grounds for recommending legal amendments and improving existing regulations.

Le Van Hoat, former Vice Chairman of the Hanoi People’s Council: Clear principles and accountability are paramount

It is necessary to issue the resolution, which is in line with practical circumstances and within the jurisdiction of the Hanoi People’s Council, and specifically enforces Article 25 of the 2024 Capital Law and the directives of the Politburo and the National Assembly.

The resolution must also include an exemption from civil and criminal liability for involved parties, as stated in the Capital Law.

The trial period should correspond to the approved investment duration, and the selection criteria should be free of location-based bias.

Pham Duc Nghiem, Deputy Director of the National Agency for Startups and Technology Entrepreneurship under the Ministry of Science and Technology: Simplify procedures, enhance flexibility, and protect consumers

This resolution is essential for establishing a legal framework that allows for the testing of new business models, products, services, and technologies within a regulated environment. However, to ensure feasibility, several adjustments need to be made.

First, procedures should be streamlined, selection criteria made more transparent, and access for enterprises improved. Second, there must be greater flexibility; the scope and duration of pilots should adapt to real market conditions rather than being fixed by initial approvals. Third, monitoring capacity must be enhanced through remote tracking tools, and stakeholder responsibilities in risk management must be precisely defined.

It is also imperative to establish mechanisms that can respond to major incidents and safeguard consumer rights within the pilot space. Certain prohibitions and legal compliance requirements must also be reviewed to align with the experimental nature of this framework.

Finally, support for small and startup enterprises should be increased to encourage innovation, in line with Article 25 of the Capital Law.

Nguyen Dinh Duong, former Director of the Hanoi Institute for Socio-Economic Development Studies: Clear classification of pilot models and streamlined exemption procedures critical

Rapid scientific and technological advancements require bold applications of regulated pilot mechanisms to ensure safety and minimizing risks.

The draft resolution was prepared quickly with quality and feasibility in mind. However, certain aspects, particularly the scope and duration of pilot implementation, still require further refinement.

Eligible organizations, especially those not headquartered in Hanoi, should be clearly defined.

The legal exemption process should be streamlined, and the Standing Committee of the Hanoi People’s Council should be granted the authority to make decisions on a case-by-case basis, rather than waiting for scheduled sessions. Pilot models should be categorized to guide appropriate exemptions.

An evaluation council should use a scoring system to quantify results.

Furthermore, the draft should standardize legal terminology, such as "licensing," "certification," and "permit issuance," to prevent future confusion.

Vu Hao Quang, Chairman of the Advisory Council for Science, Education, and Environment, under the Vietnam Fatherland Front Committee of Hanoi: A unified legal framework and clear implementation mechanism are essential

Issuing the resolution enables businesses to pilot new products, contributes to policymaking improvements, and enhances Hanoi’s competitiveness.

However, in the absence of a national law or decree on regulated trials, local resolutions could lead to inconsistencies and legal conflicts across provinces, particularly in sensitive sectors such as finance, banking, and personal data.

Therefore, this resolution should be treated as a pilot mechanism aligned with central government directives. Alternatively, the government should issue a national decree to establish a unified legal basis.

Several provisions in the draft exceed the city’s authority, such as trials in sectors governed centrally or legal risk management. Well-defined jurisdiction, evaluation criteria, monitoring indicators, a designated lead agency, and interdepartmental coordination mechanisms are needed.

The draft must also define funding sources and a process to transition successful pilots into formal models.