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​ 

February 24, 2023
Noppparat Lalitkomon, head of Tilleke & Gibbins’ data protection team in Thailand, has prepared the Thailand contribution for the Data Privacy Trends and Topics Report, published by Lex Mundi. The report provides brief overviews of recent and upcoming regulatory and legal developments concerning data privacy in the jurisdictions of Lex Mundi member firms in 53 jurisdictions around the world. Drawing on the expertise of Lex Mundi member firms from around the world, the report features local insights to help businesses handle cross-border data and cybersecurity challenges. Lex Mundi has also compiled a global overview of how firms in each region assess the likelihood of significant changes to the data protection landscape in 2023. Notably, Asia and the Pacific is identified as the region most likely to undergo changes, with 73% of reporting firms expecting significant developments in their jurisdictions. The report containing all 53 contributions—grouped by world region—is available on the Lex Mundi website or through the button below.
Read More
February 16, 2023
Thailand has issued a Royal Decree on the Supervision of Regulated Digital Identification Authentication and Verification Service Businesses B.E. 2565 (2022) (the “Royal Decree”), aimed at regulating business operators that provide digital identification authentication and verification services (“Digital ID Services”). The Royal Decree was published in the Government Gazette in December 2022, and will take effect 180 days from the publication date, i.e., on June 21, 2023. The key details and requirements of the Royal Decree are as follows: Regulated Digital ID Services Under the Royal Decree, the provision of the following Digital ID Services requires prior approval from the Electronic Transaction Development Agency: Identity verification service – Services for collecting and identifying information relating to the identity of a person, and verifying the connections between the person and the identity. Authenticator issuance and management service – Services relating to the connection between a person who has passed the identification process with an authenticator, and managing actions which are used to identify a person. Authentication service – A process to authenticate a person by inspecting his/her authenticator. Digital ID networks/systems – Provision of networks or systems used to exchange information for digital identification purposes, excluding services provided by an intermediary. Exempted Digital ID Services The Royal Decree also specifies a list of Digital ID Services that are exempted from supervision under the Royal Decree, as follows: Issuance of certificates to support the use of electronic signatures in accordance with the Electronic Transaction Act. Digital ID Services conducted for use within the operator’s own business only, and which do not involve the provision of such services to third parties. Other Digital ID Services as prescribed by the Electronic Transaction Committee. Qualifications of Business Operators The types of business operators qualified to operate Digital ID Services include (i) private limited companies;
Read More
February 10, 2023
On January 16, 2023, Thailand’s Securities and Exchange Commission (SEC) prescribed a set of security measures that digital asset business operators must implement if they provide custody of digital assets for their customers. The new security measures are prescribed in two notifications from the SEC and its office on digital asset wallet management systems and cryptographic key management systems, with the aim of safeguarding digital assets in custody against loss, fraud, and cybertheft. The notifications took immediate effect. The new security measures and the management systems are summarized below. Policy and guidelines for managing systems related to digital asset custody Digital asset business operators must have a written risk management policy for all systems relating to digital asset custody, approved by their board of directors and made accessible to all employees. The policy must be reviewed or revised at least once annually, or promptly if any potential risks are identified. Specific procedures must be implemented, such as establishment of a compliance team and internal controls. Management of systems for digital asset wallets and cryptographic keys Digital asset business operators must have policies and procedures for managing all systems relating to digital asset custody. This includes properly designing, developing, and managing digital asset wallets in a safe and secure manner. The same requirement on policies and procedures applies to cryptographic key management as well. Management of incidents that may affect systems related to digital asset custody Digital asset business operators must have measures in place to manage incidents that may impact systems related to digital asset custody. The measures include designating a person responsible for incident management, testing and reviewing the incident management policy annually, reporting any incidents affecting digital asset custody to the designated responsible person and the SEC immediately, and conducting a digital forensic investigation with an independent
Read More
February 8, 2023
Government Approves Legislative Dossier On February 7, 2023, the Vietnamese government issued Resolution No. 13/NQ-CP (“Resolution 13”) to approve the latest version of the draft Personal Data Protection Decree (“Draft PDPD”)—a draft which has not yet been made public. Similar to Resolution No. 27/NQ-CP issued in March 2022 approving the previous version of the Draft PDPD (“Resolution 27”), Resolution 13 stipulates the different cases where data subjects’ consent is exempted for processing personal data. Most of these lawful bases are similar to those under Resolution 27—except for the fourth case, which is brand new—with some changes for better clarity. According to Article 1 of Resolution 13, personal data can be processed without consent in the following five cases: (1) The processing is to protect the life and health of the data subject or others in an emergency situation. Data Controllers, Data Processors, Parties Controlling and Processing Personal Data, and Third Parties are responsible for proving this case; Remarks: Vietnamese law, including the prior published version of the Draft PDPD, has never used the terms “data controller”, “data processor,” and “parties controlling and processing personal data.” The inclusion of these terms suggests that the latest version of the Draft PDPD has adopted the GDPR-like concepts of “data controller” and “data processor.” However, until the latest version of the Draft PDPD can be assessed, it is uncertain how these concepts are defined and whether they are fully in line with GDPR definitions. (2) The disclosure of personal data is in accordance with the law; (3) The processing of data is performed by competent state agencies in the event of a state of emergency related to national defense, national security, social order and safety, major disaster, or dangerous epidemic; when there is a threat to security and national defense but not to
Read More