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​ 

October 2, 2023
Thailand’s National Broadcasting and Telecommunications Commission (NBTC) has issued the Notification of the NBTC Re: Measures to Protect Telecommunications Service Users’ Rights Regarding Personal Data, Privacy Rights, and Freedom of Telecommunications to replace the previous 2006 notification of the same name. The replacement notification supports compliance with the Personal Data Protection Act B.E. 2562 (2019) (PDPA), modernizes the regulations in response to technological change and the convergence of digital business, and enhances the protection of telecommunications users’ personal data, privacy rights, and freedoms. Key aspects of the replacement notification are highlighted below. User Data and Consent The notification specifies that “user’s personal data” includes name, address, ID number, mobile number, usage information, and user behavior that can identify the user. “User” does not include resellers of telecommunications services. To collect, use, or disclose users’ personal data for a purpose other than telecommunications service, service providers must obtain each user’s consent prior to or at the time of collecting the data. The consent (whether written or electronic) must be separate from the telecommunications service agreement. Service providers must clarify the purpose of collecting data, and they must honor users’ rights to opt in and opt out by providing clear and convenient channels for users to withdraw any of their information or cancel any services offered by the operator. Service providers must add an electronic channel for receiving requests from users to review, access, edit, change, or obtain a copy of their data. The electronic channel must also allow requests from users to suspend use or disclosure of their personal data and withdraw consent to collect, use, or disclose their personal data. In addition, service providers must have a system for verifying the identity of users who want to exercise the rights listed in this paragraph. Data Collection and Storage Collection
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
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
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.