Vietnam's landmark digital technology legislation has positioned Southeast Asia as a burgeoning hub for decentralized physical infrastructure networks (DePIN), with U2U Network co-CEO Chloe Phung revealing how regulatory shifts are accelerating institutional blockchain adoption.

Regulatory Green Light Sparks Web3 Transformation

Vietnam's Digital Technology Industry Law, enacted in June 2025 and effective from 2026, establishes comprehensive frameworks for digital assets while introducing a regulatory sandbox for virtual asset innovation. This legislative move comes as 【Southeast Asia accounts for 40%】 of early-stage Web3 infrastructure investments across Asia, according to Boston Consulting Group analysis.

——"We're witnessing a paradigm shift from theoretical discussions to operational pilot programs,"—— Phung noted during a Cointelegraph AMA session. The executive highlighted how Vietnam's proactive stance enables enterprises to innovate without awaiting perfect regulatory models.

Institutional Momentum Builds

Financial heavyweight SSI Digital has emerged as a key player, leading U2U Network's Series A funding while collaborating on smart city and DePIN initiatives. This partnership reflects growing institutional interest, with telecom operators, real estate developers, and banking groups now actively exploring asset tokenization strategies.

Special economic zones in Da Nang and Ho Chi Minh City are developing tailored tax regimes for digital asset businesses. Phung emphasized these developments create ——"fertile ground for Web3 applications with real-world utility"—— particularly in underbanked regions where mobile penetration outpaces traditional financial access.

DePIN's Regional Advantage

The technology's decentralized model resonates strongly in Southeast Asia, where users already engage with sharing economy platforms. U2U Network's architecture demonstrates this potential through:

• A DAG-based consensus system delivering 【17,000 TPS】 with 650ms transaction finality
• Modular subnet functionality allowing customized blockchain implementations
• Live deployments including a bandwidth marketplace and decentralized private network (U2DPN) with 94,000+ nodes

Roadmap to Real-World Impact

U2U plans to launch a unified DePIN Client Hub in coming months, simplifying resource sharing across applications. The network currently supports weather data project Nubila and enterprise solution Staex, which integrates DePIN with industrial drone operations.

——"Our focus is moving beyond theoretical potential to measurable economic impact,"—— Phung stated, noting particular interest from Vietnamese supply chain operators. With Vietnam's digital asset framework taking effect next year, 2026 appears poised to become a watershed moment for regional blockchain adoption.

As traditional institutions increasingly partner with Web3 innovators, Southeast Asia's unique combination of regulatory clarity, demographic advantages, and infrastructure needs positions it as a testing ground for decentralized solutions addressing real-world challenges.