Legal framework creates breakthroughs in developing new technologies and new business models

“Sandbox”, literally “sandbox”, is an image that evokes the image of a children’s toy. But behind that simple image is an extremely important environment for experimentation and innovation, which is gradually becoming a key keyword in the process of developing technology and the digital economy in the world as well as in Vietnam.

Science and technology are an important driving force for national development (Photo: Tien Tuan).

In the technology field, a sandbox is understood as a testing environment that is separate from the main system. It allows programmers and software engineers to test applications, programming code or new features without worrying about affecting the actual operating system. Just like children playing in a sandbox without worrying about dirtying the whole garden, a sandbox helps engineers and programmers test new features, detect errors, or run suspicious software safely.

For example, when a user downloads a strange file, the antivirus software will put it in a sandbox to check. If the file contains malicious code, it will be "confined" there, unable to cause harm to the outside. Web browsers such as Google Chrome and Microsoft Edge also apply the sandbox mechanism to isolate each tab - a term that refers to opening multiple websites at the same time in the same window; each tab is a small window containing a separate website or document - to avoid the risk of spreading errors. iOS and Android operating systems use sandboxes to protect user data, ensuring that applications do not violate privacy.

Not only limited to security, sandbox is also a fertile ground for creativity. In the gaming industry, sandbox games are a genre that allows players to freely explore and create their own world without being bound by a script. Famous names like Minecraft, Roblox, The Sims are living proof.

Originating from the technology sector, the concept of sandbox has expanded to the financial and policy sectors. In the world, "regulatory sandbox" is a testing model under the supervision of regulatory agencies, allowing businesses to test new products and services (especially in the fields of fintech - financial technology, blockchain - blockchain technology) without having to comply with all current legal regulations. This model has been successfully applied in the UK and Singapore from 2016 - 2017, and has spread to more than 50 countries.

In Vietnam, Resolution 57-NQ/TW of the Politburo issued in December 2024 identified science and technology, innovation, and digital transformation as strategic breakthroughs for rapid and sustainable development. One of the solutions emphasized is building a sandbox, creating a safe space to test new models and technologies.

Next, Resolution 68-NQ/TW on private economic development for the first time clearly stated: Issuing a legal framework for controlled testing (sandbox) for new technologies, products, services, and new business models; creating a favorable environment for private enterprises to participate in research and application of artificial intelligence, blockchain, big data, e-commerce, financial technology, smart healthcare, etc.

Sandboxes offer three key benefits: reducing risk, fostering innovation, and promoting regulatory reform. They help test new products and services in a controlled environment, limit negative external impacts, and create space for businesses, innovators, and programmers to dare to think, dare to do, and experiment with bold ideas.

Most importantly, it helps managers see reality, adjust policies based on experimental data, instead of building laws "on paper"; it allows testing new models before scaling up.

A sandbox can be thought of as a miniature laboratory where ideas are tested before they are released to the larger market. Without a sandbox, businesses would be hesitant, regulators cautious, and society would miss out on innovation.

It can be said that the sandbox is a stepping stone for explosive innovation without worrying about "breaking out", especially in the context of Vietnam's desire to make a breakthrough in technology and digital economy according to the above Resolutions of the Politburo.

From fintech, blockchain, artificial intelligence to healthcare, education, smart transportation, the sandbox mechanism can become a "springboard" for Vietnam to break through, catch up and even lead some fields. However, the sandbox is not a "universal key". To be successful, it requires clear criteria, a strict monitoring mechanism, and a roadmap to transition to an official legal framework. Vietnam has only just begun to apply the sandbox mainly in fintech, but the potential to expand to other industries is huge.

The "sandbox" is no longer just for children to play, but has become a symbol of innovation and safe experimentation in technology, finance and policy. By opening the sandbox mechanism, we are opening up opportunities for stronger development, especially for new technologies, products, services and new business models.

Author: Journalist Bao Trung is Head of Science and Technology Department of Dan Tri newspaper.

Dantri.com.vn

Source: https://dantri.com.vn/tam-diem/khung-phap-ly-tao-dot-pha-phat-trien-cong-nghe-moi-mo-hinh-kinh-doanh-moi-20250512140506402.htm