You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

January 21, 2025

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

Subscribe to Updates

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.

Related Professionals

Industries

Technology

Location

RELATED INSIGHTS​ 

September 26, 2023
On September 14, 2023, Thailand’s Personal Data Protection Committee (PDPC) published a notification on the requirements for the appointment of a data protection officer (DPO) in the Government Gazette, taking effect on December 13, 2023. The notification on appointing a DPO lays out the criteria for what constitutes processing of personal data requiring “regular monitoring of the personal data or the system” by reason of “having large-scale personal data,” which requires data controllers and data processors to appoint a DPO under the Personal Data Protection Act B.E. 2562 (PDPA). Criteria After a hearing on the draft DPO appointment notification in July, the published version has been slightly amended while the main criteria for appointment of a DPO are still the same. These have been finalized as follows: When determining whether processing of personal data requires regular monitoring due to having large-scale personal data, only the “core activity” of the data controller or data processor is to be taken into consideration. The term “core activity” denotes an essential and integral activity directly related to the primary operations of the data controller or data processor and does not include any supplementary business activities (e.g., human resources and information technology activities). “Processing activities that require regular monitoring of personal data” refers to activities relating to tracking, monitoring, analyzing, or predicting the behavior, attitude, or profile of individuals, and generally involves the processing of personal data in a systemic manner on a usual or regular basis. Examples include membership card programs, credit scoring, insurance premium consideration, fraud prevention, processing of personal data by computer network system service providers or telecommunications operators, behavioral advertising, and so on. To determine whether processing activities constitute “large-scale processing of personal data,” various factors are considered: Volume, type, or nature of personal data processed; Duration or permanence of
Read More
September 21, 2023
Myanmar’s Ministry of Commerce has announced its E-commerce Guidelines to regulate stakeholders engaging in e-commerce. The guidelines—which were issued on September 5, 2023, and took immediate effect—are mandatory for e-commerce business operators (both entities and individuals), and failure to comply with the guidelines’ requirements may result in penalties under relevant laws. The E-commerce Guidelines come as Myanmar seeks to increase its regulation of e-commerce activities. The guidelines were preceded by a July 2023 notification requiring e-commerce business operators to register their activities with the Ministry of Commerce by January 21, 2024. Definitions “E-commerce” is defined as the sale of goods or services on the internet or other digital platforms. The term also covers sales promotions, marketing, logistics, ordering, and delivery. An “e-commerce platform entrepreneur” is a person who manages an e-commerce platform where two or more entrepreneurs can conduct e-commerce. An “e-commerce business operator” is a person operating or authorized to operate e-commerce activities. This includes e-commerce platform entrepreneurs, entrepreneurs selling on e-commerce platforms, and sellers through social media platforms. Electronic Contracts Acceptable forms of electronic contracts, which must comply with the Electronic Transactions Law, Contract Act, and other relevant laws, include: Click-wrap, click-through, and web-wrap contracts; Browse-wrap contracts; and Agreements between seller and buyer on social media platforms, such as by accepting or rejecting an offer via direct message. Samples of contract forms are appended to the guidelines. Consumer Protection Disclosure notices for consumers must be comprehensible, correct, consistent, simple, accessible, and visible. They can be written in Myanmar language, English, or Myanmar language and another language. They must also comply with the relevant provisions of the Consumer Protection Law. The guidelines provide that if the agreed delivery date is eclipsed by more than 15 days, the consumer may terminate the contract and request a full refund of
Read More
August 31, 2023
When your company suffers a data breach, taking prudent, careful action can limit and perhaps even rectify some of the damage. First of all, it is important to document everything, starting with the time the data breach was discovered. Secure the data systems and preserve all evidence so that investigators can determine what happened, and begin following the protocol that all companies handling personal data should have in place to guide their data breach response. It is also crucial to seek timely legal assistance to ensure that every aspect of the response is planned and carried out according to the law. While applicable legal advice for each situation can only be obtained by consulting a legal advisor, this guide gives an overview of what companies in Southeast Asian jurisdictions can expect if they suffer a data breach. This guide from Tilleke & Gibbins is a quick-reference resource covering key regulatory issues regarding data breach responses in Cambodia, Laos, Myanmar, Thailand, and Vietnam. The full guide can be downloaded through the button below.
Read More
August 23, 2023
Introduction The idea of the metaverse rose to prominence in the public discourse in 2021, most notably when Facebook renamed itself Meta and announced a new focus on launching a virtual, immersive world. The initial excitement around the metaverse has since faded, with worsening economic conditions having a particularly acute effect on companies in the technology sector. When Meta CEO Mark Zuckerberg announced in March 2023 that artificial intelligence (AI) was the company’s “single largest investment,” many took this as a sign of the company shifting focus away from the metaverse. However, there remains significant interest in the metaverse from both businesses and consumers. Zuckerberg himself reaffirmed Meta’s focus on the metaverse, highlighting how developments in AI will improve virtual reality (VR) and augmented reality (AR) technology. Meanwhile, Roblox, a metaverse gaming platform, announced that in Q1 2023, its number of daily active users had increased to 66 million. Most recently, the announcement by Apple of its new ‘Vision Pro’ AR headset is reported to have renewed interest in the metaverse among developers. A particular area of interest in the developing metaverse is digital fashion and retail. In its Metaverse Fashion Trends Report 2022, Roblox found that nearly three in four users aged 14 to 24 spend money on digital fashion items. Roblox itself has partnered with fashion brands Burberry, Gucci, Tommy Hilfiger, and others, to offer experiences and items for use on the platform. In March 2023, Decentraland, a metaverse platform with a decentralized governance structure, hosted the Metaverse Fashion Week, featuring brands such as Adidas, Coach, and DKNY. As businesses continue to invest and look for opportunities to expand into the metaverse, whether through traditional e-commerce or more innovative digital asset offerings, it is important that they consider the ways in which new and existing laws apply
Read More