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January 21, 2025

AI Regulations Come into Focus in Vietnam’s Draft Law on Digital Technology Industry

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Vietnam’s Ministry of Information and Communications has released the latest version of its draft Law on the Digital Technology Industry (DTI Law), marking a significant step toward comprehensive regulation of digital technologies and notably addressing artificial intelligence (AI). The draft law was deliberated in the National Assembly on January 6, 2025, and is expected to be adopted in May 2025. Once in effect, the law will modernize Vietnam’s existing information technology regulatory framework.

Background

Vietnam has been steadily building its regulatory framework for AI since January 2021, when the prime minister issued Decision No. 127/QD-TTg on the National Strategy for Research, Development, and Application of Artificial Intelligence until 2030. While various ministries have been tasked with issuing guidance documents and technical standards, Vietnam still lacks a comprehensive legal framework specifically addressing AI and digital technologies. The draft DTI Law aims to fill this gap by providing a structured approach to regulating the digital technology industry.

Scope and Definitions

The draft DTI Law establishes a broad framework governing digital technology industry activities, initiatives for developing the digital technology sector, and rights and obligations of organizations and individuals in the industry. The draft law also proposes the creation of various incentives, primarily in the form of tax benefits, for encouraging foreign direct investment, talent acquisition and development, and industry growth.

The draft law introduces several important definitions, particularly around AI, which is defined as digital technology that simulates human intelligence to generate content, forecasts, suggestions, and decisions based on human-determined goals. The draft distinguishes between different categories of AI systems:

  • High-risk AI systems: Those posing risks to health, safety, rights, and legitimate interests.
  • High-impact AI systems: Distinguished by their broad scope, large user base, and significant computational resources for training.
  • Standard AI systems: Basic systems that apply AI for automated analysis and decision-making. The draft DTI Law notably contains a “whitelist” of AI systems that are not considered high-risk if they are (1) designed to perform a task within a narrow scope, (2) intended to improve the outcomes of previously completed human activities, and (3) aimed at detecting and recommending deviations from previous results.

Requirements and Restrictions

The draft law implements several requirements for AI deployment, such as:

  • Principles for AI development, provision, implementation, and use, which must:
    • Serve human prosperity and happiness, be human-centered, and enhance productivity and work efficiency; ensure inclusive, fair, and nondiscriminatory access; respect ethical values, human rights, and interests; and protect privacy;
    • Ensure transparency, explainability, accountability, and control over AI algorithms and models, and not replace or surpass human control;
    • Ensure security and confidentiality;
    • Manage risks throughout the AI lifecycle;
    • Promote responsible innovation and encourage international cooperation; and
    • Apply environmentally friendly and energy-saving measures in the development, provision, and use of AI.
  • Mandatory labeling: All digital technology products created by AI systems must be clearly labeled for identification purposes.
  • Prohibited activities: The draft law explicitly prohibits the provision, implementation, or use of AI systems for:
    • Manipulation and fraud;
    • Discriminatory applications;
    • Invasion of privacy;
    • Human rights violations; and
    • Activities infringing on organizational or individual interests.

Next Steps

Although the final version of the DTI Law may differ from this draft, organizations operating or planning to operate in Vietnam’s digital technology sector should review their AI systems, prepare for compliance, and assess potential opportunities for receiving investment incentives.

For AI research and development, attention should be paid to the regulatory developments led by the Ministry of Science and Technology (MOST), which has also issued guiding principles for research and development of AI systems as well as standards on AI lifecycle processes, quality requirements, and sustainability. MOST is also revamping the Law on Science, Technology, and Innovation—the latest draft of which was released in December 2024 and includes guidance on research and development of AI systems.

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