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

March 27, 2026

Vietnam’s multi-layered AI development framework

Asia Business Law Journal

Vietnam’s emerging governance framework for artificial intelligence (AI) is developing through a multi-layered structure comprising three components:

  1. Policy instruments setting national priorities for AI development;
  2. Regulatory framework governing development, provision, deployment and use of AI; and
  3. Technical standards and voluntary guidelines.

Policy level. At policy level, the foundation for a strategic framework for AI development and governance was laid in 2021 by the National Strategy for Research, Development and Application of AI until 2030, aimed at strengthening the national AI ecosystem and positioning Vietnam as a regional AI innovation hub.

Subsequently, resolution No.57-NQ/TW (2024) identified AI as a key driver of science, technology, innovation and national digital transformation. AI was also designated as a strategic technology under decision No.1131/QD-TTg (2025) listing priority technologies across sectors.

Regulatory framework. At the legislative level, the new Law on Artificial Intelligence took effect on 1 March 2026, establishing the core regulatory framework governing development, provision, deployment and use of AI systems.

Controlled testing for emerging AI technologies is implemented under the Law on Science, Technology and Innovation.

The AI Law is expected to be further operationalised through implementing instruments, most notably a draft decree guiding the AI Law, and draft decision of the prime minister identifying high-risk AI systems (both published in February 2026). A decision establishing priority datasets for AI development is also anticipated.

Compliance obligations may also arise under sectoral regulatory regimes, including data protection, cybersecurity, banking, consumer protection, e-commerce and intellectual property, particularly where AI systems are used in automated decision-making or data-driven services.

Technical standards and non-binding guidelines. Vietnam’s AI governance framework is also supported by technical standards and voluntary guidelines. A key instrument is decision No.1290/QD-BKHCN (2024), providing guidelines for responsible research and development of AI systems, and represents Vietnam’s first national AI ethics code. The Ministry of Science and Technology (MST) encourages organisations to adopt these principles – though they are not legally binding – to promote responsible AI development.

Vietnam has also begun incorporating international AI technical standards into its national standards system. While these standards are not legally binding unless incorporated into legislation or National Technical Regulations, they provide guidance on AI terminology, lifecycle management, robustness, governance frameworks and machine learning systems, helping align Vietnam’s AI governance ecosystem with international standards.

Regulation under AI Law

Scope of application. The AI Law applies to Vietnamese organisations and individuals, as well as foreign entities engaging in AI-related activities in Vietnam, but excludes those solely for national defence, security and cryptography purposes.

A defining feature of the AI Law is regulating by role rather than by industry, distinguishing between:

    1. Developers who design, build, train, test or fine-tune AI models and control technical methods, training data or model parameters;
    2. Providers who place AI systems on the market or put them into use under their own name;
    3. Deployers who use AI systems under their control in professional or commercial activities;
    4. Users who interact with AI systems or rely on their outputs; and
    5. Affected persons whose lawful rights or interests may be directly or indirectly impacted by the deployment or outputs of AI systems.

Risk-based classification as first compliance gate. At AI Law’s core is a regulatory model in which AI systems are classified as high, medium or low risk.

    1. High risk: AI systems that may cause significant harm to life, health, lawful rights and interests, or national and public interests. The prime minister will issue a list identifying such systems. The draft AI decree also allows exclusions, including systems used for technical data processing, internal operations, controlled research environments or advisory purposes with human oversight. But systems posing significant risks to national security or public order may be designated as high risk.
    2. Medium risk: AI systems that may confuse or influence users where they cannot recognise that they are interacting with AI-generated content or an AI system. Certain systems are excluded, including those performing purely technical editing or used in clearly fictional contexts such as filmmaking or gaming, unless they simulate real persons or events for commercial, financial or political purposes.
    3. Low risk: All remaining systems. This classification framework functions as the primary gateway to compliance, determining whether obligations such as classification notification, conformity assessment and other governance requirements apply. Providers are responsible for initial classification prior to deployment, while deployers must reassess classification if the system is materially modified or used in a different context.

Governance based on risk levels

  1. High-risk AI systems. Classification as high risk triggers extensive governance obligations across the AI lifecycle.
    1. Risk notification: Providers must notify the MST of classification results through the national AI portal before deployment.
    2. Conformity assessment: Certain high-risk systems must undergo conformity assessment before deployment and after significant modifications, through either third-party certification or provider self-assessment depending on regulatory requirements.
    3. Transparency obligation: Providers must ensure users can recognise when they are interacting with AI systems and AI-generated content is clearly labelled. Deployers must disclose when AI-generated or edited content is made public.
    4. Incident management: Developers, providers, deployers and users must ensure system safety and address incidents promptly. Serious incidents need remedial measures and competent authorities must be notified.
    5. Local presence for foreign providers: Foreign providers supplying high-risk AI systems must establish a lawful contact point in Vietnam, and in certain cases maintain a commercial presence or authorised representative.
    6. Lifecycle governance obligations: High-risk systems are subject to ongoing obligations relating to risk management, data governance, documentation, human oversight and regulatory co-operation.
  2. Medium-risk and low-risk AI systems. As with high-risk systems, providers of medium-risk systems are required to conduct risk classification and submit corresponding notification to the MST.

Providers and deployers must comply with transparency obligations and be prepared, on request, to explain the system’s purpose, operation, key input data and risk management measures, without being required to disclose source code, detailed algorithms or other trade secrets. Deployers are also responsible for explaining system operation, risk controls, incident handling measures and safeguards for the lawful rights and interests of affected persons.

Low-risk AI systems, by contrast, are subject to a largely post-hoc oversight model. Providers and deployers are only required to account for such systems when there are indications of legal violations or adverse impacts on lawful rights or interests, while users remain free to use low-risk systems for lawful purposes at their own responsibility.

Regulatory requirements

In addition to governance under the AI Law, several sector-specific regulations impose additional requirements on deployment and use of AI in regulated industries.

In banking and finance, the State Bank of Vietnam has issued a draft circular on safety and risk management for AI deployment. Financial institutions must complete pre-deployment procedures, including risk classification documentation, information security testing, impact assessments for high-risk systems, and operational safety plans covering monitoring and incident response. The draft also introduces transparency requirements and prohibits using AI to exploit customer vulnerabilities or promote unsuitable financial products.

Under consumer protection, operators of large digital platforms must periodically assess and report their use of AI technologies and provide information to competent authorities for regulatory supervision.

In e-commerce, the Law on E-Commerce requires transparency where algorithms or AI-based recommendation systems are used to rank or display goods on digital marketplaces. Platforms must disclose the main criteria used by these algorithms and allow users to enable or disable such features.

For data protection, AI-related data processing is governed by the Law on Personal Data Protection. Organisations using personal data for AI training or analytics must ensure processing occurs for legitimate purposes and implement safeguards such as access controls, encryption and compliance with data subject rights and cross-border transfer requirements. The Data Law further establishes principles governing data management, sharing, and infrastructure relevant to AI development.

Outlook

Vietnam has taken a significant step towards establishing a comprehensive legal framework for AI governance. While the AI Law provides the foundational regulatory structure, several implementing instruments remain under development and will further clarify compliance obligations.

As Vietnam’s digital economy expands, the regulatory approach is likely to evolve towards a more integrated governance model combining AI-specific regulations, sectoral oversight, and internationally aligned technical standards. Organisations deploying AI systems should therefore closely monitor regulatory developments and strengthen internal governance, risk management and transparency practices to prepare for the next phase of AI regulation.

 

This article was originally published by Asian Business Law Journal.

RELATED INSIGHTS​ 

June 21, 2024
On June 4, Thailand’s Ministry of Commerce (MOC) issued a new notification on e-commerce business registration pursuant to the Commercial Registration Act B.E. 2499 (1956) (CRA), replacing a similar notification from 2010. The new notification (officially titled “Notification Re: Business Regulations that Commercial Operators Must Register and Businesses that Are Not Subject to the Commercial Registration Act, B.E. 2549 B.E. 2567”) took effect on June 5, 2024. While the previous notification required all individuals and legal entities engaged in regulated activities, such as selling goods or services online, to register their businesses with the local district office, the new notification effectively lifts this requirement for certain legal entities. The new notification clearly states that the CRA does not apply to regulated activities conducted by: Private limited companies, registered ordinary partnerships, and limited partnerships (i.e., legal entities under the Civil and Commercial Code); and Public limited companies (i.e., legal entities under the Public Limited Companies Act). Now that the new notification is in effect, limited companies and other specified legal entities are no longer required to register their e-commerce activities and obtain an e-commerce certificate from the MOC. E-commerce certificates previously issued to these legal entities are also voided by the new notification. Nevertheless, the requirement to register for direct marketing and obtain a direct marketing certificate under the Direct Sales and Direct Marketing Act B.E. 2545 (2002) remains in effect for any online sales or e-marketplace platforms administered by legal entities. Given the recent proactive enforcement of penalties for noncompliance with direct marketing registration requirements, we strongly advise business operators to assess whether their operations fall within the scope of direct marketing regulations and require a direct marketing certificate. For more information on e-commerce and direct marketing registration in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Nopparat Lalitkomon
June 19, 2024
Vietnam’s financial landscape is set to further transform on July 1, 2024, when the government’s long-awaited Decree No. 52/2024/ND-CP dated May 15, 2024 (“Decree 52”), will officially replace Decree No. 101/2012/ND-CP dated November 22, 2012, on non-cash payments (“Decree 101”). Decree 52 marks an important milestone by introducing the country’s first-ever legal definition of e-money. In addition, the decree brings forth new updates to regulations governing payment and intermediary payment services, laying the groundwork for more comprehensive guidance that will be provided in draft circulars now being developed by the State Bank of Vietnam (SBV). Non-Cash Payment Instruments The new definition of non-cash payment instruments under Decree 52 expands upon the previous definition in Decree 101. Notably, it clearly specifies the issuing entities as payment service providers, financial companies licensed to issue credit cards, and e-wallet service providers. Additionally, the new definition further clarifies that bank cards include debit, credit, and prepaid cards, and adds e-wallets to the list of non-cash payment instruments. Unlawful non-cash payment instruments are still defined as those that are not otherwise specified. E-Money Prior to Decree 52, the concept of e-money lacked a precise legal definition, despite its growing prevalence in forms like prepaid cards and e-wallets. The absence of a clear framework for e-money led to confusion with terms like “cryptpcurrency” and “virtual currency” and left significant ambiguity on whether e-money includes certain instruments, such as online game cards and mobile money. Decree 52 addresses this issue by clearly defining e-money as value in Vietnamese dong (VND) stored electronically and prepaid by customers to banks, foreign bank branches, and e-wallet service providers. It also specifically designates e-wallets and prepaid cards as types of storage mechanisms for e-money. Non-Cash Payment Services Decree 52 categorizes non-cash payment services into services with and without client payment
June 19, 2024
On June 14, 2024, the Personal Data Protection Committee (PDPC) released a draft notification under the Personal Data Protection Act 2019 (PDPA), setting out criteria for how data controllers must delete, destroy, and de-identify personal data. According to the PDPA, a data subject can request that a data controller delete, destroy, or de-identify their personal data in any of the following circumstances: The personal data is no longer necessary for the purposes for which it was collected, used, or disclosed. The data subject has withdrawn their consent for the processing of the personal data, and no other lawful basis for processing remains. The data subject has objected to the processing of their personal data on grounds of legitimate interests or official tasks, the data controller has no other compelling grounds to refuse the request, and the data is not needed for legal claims. The data subject objects to the processing of their personal data for direct marketing purposes. The processing of personal data is unlawful. The draft stipulates that data controllers respond to a data subject’s request to delete, destroy, or de-identify personal data immediately, and within 60 days of receiving the request. If the data controller cannot fulfill the request immediately, they must take interim measures to ensure that the personal data is made difficult to collect, use, or disclose. This includes implementing measures such as preventing access to the data and applying appropriate security measures to protect the data from unauthorized use or disclosure. De-identification or Anonymization of Personal Data In certain circumstances, a data controller may opt to de-identify or anonymize personal data, rather than delete or destroy it. If doing so, the data controller must satisfy the following criteria: There must be a structured process to remove or eliminate all direct identifiers linked to the
May 15, 2024
On May 1, 2024, Thailand’s National Cyber Security Committee (NCSC) published the draft NCSC Notification Re: Cloud Cybersecurity Standards for a public hearing period, which was open until May 14, 2024. These standards have been drafted to drive the country’s cloud-first policy with the aim of minimizing risks from cyber threats to cloud services utilized by government agencies, supervising or regulating organizations, and critical information infrastructure (CII) organizations. The key points of the draft Cloud Cybersecurity Standards are below. Scope The standards apply to government agencies, supervising or regulating organizations, and CII organizations under the Cybersecurity Act B.E. 2562 (2019), as well as cloud service providers (defined below). The standards prescribe cloud system cybersecurity measures for cloud service customers (defined below) and providers only to the extent that the service is provided to the in-scope organizations outlined above. Definitions Cloud service customers (CSCs): In-scope organizations that have a formal contractual agreement to use cloud services provided by a cloud service provider. Cloud service providers (CSPs): Persons who enable cloud services to be used by a cloud service customer, responsible for maintaining infrastructure, platforms, and software that enable provision of the cloud services and for managing these resources to ensure their accessibility, security, and scalability for their cloud service customers. Application In-scope organizations that will use or have been using cloud services must comply with the Cloud Cybersecurity Standards by taking into account their data or technology information systems’ level of impact, as specified in the previously issued Notification of the NCSC Re: Standards for Defining the Security Category for Data and Information Systems B.E. 2566 (2023). The impact level related to personal data is to be rated as being at least at the medium level, and the minimum standards for that level specified in the draft Cloud Cybersecurity Standards