The role of regulatory sandbox in innovating legal thinking for Fintech in Viet Nam

Abstract

The boom of financial technology (Fintech) in Viet Nam is posing many challenges to traditional legal frameworks, requiring a shift in the mindset of lawmaking. This study analyzes the role of the regulatory sandbox mechanism as a key instrument and catalyst for innovating legal thinking. Using the methods of legal analysis, comparison, and policy evaluation, the paper argues that the sandbox is a method for transforming the legal mindset from a “static” and “prohibitive” approach to a “dynamic” and “evidence-based” one. The research findings affirm that the effective implementation of the sandbox mechanism will help lawmakers gather practical data and understand new business models, thereby building a flexible legal corridor that encourages innovation and aligns with the digital economy.