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​ 

July 25, 2022
Vietnam’s current Law on E-Transactions was passed in 2005 and has been effective since March 1, 2006. This law is considered a framework law, developed based on the Model Law on E-Commerce of the United Nations Commission on International Trade Law (UNCITRAL). According to the Ministry of Information and Communications (MIC), over the past 17 years, the implementation and application of e-transactions has shown significant evolution in certain areas demanding high levels of international integration, such as banking and e-commerce, but has faced difficulties in other areas due to a lack of detailed guidance. In addition, with the strong growth and breakthrough development of digital technologies such as artificial intelligence, big data, biometrics, and blockchain, and in the context of the ongoing Industrial Revolution 4.0 and the development of digital government, digital economy, and digital society, the 2005 Law on E-Transactions has revealed its shortcomings. Therefore, the government of Vietnam has entrusted the MIC to take the lead in drafting a new Law on E-Transactions, which will replace the old 2005 law in order to meet the country’s development needs. Accordingly, the MIC published a Draft Law on E-Transactions (“Draft Law”) for public consultation from May 4 to July 4, 2022. The latest accessible version of the Draft Law at the time of writing is Version 4. The effective date of the Draft Law is still not yet determined, though this law is expected to be submitted to the National Assembly for its review and comments in October 2022 and approval in May 2023. The following are some key contents of the Draft Law: 1. Scope of Application Unlike the current law, which explicitly excludes certain areas such as the issuance of certificates of land use rights and marriage certificates from the scope of application, the Draft Law attempts
July 19, 2022
On June 23, 2022, Thailand’s Securities and Exchange Commission (SEC) opened a public hearing period on regulatory controls for initial coin offering (ICO) portals that serve as financial advisors to digital token issuers. The proposed measures aim to prevent conflicts of interest; allow ICO portals to outsource certain functions; and establish additional notification obligations for ICO portals. The public hearing is open for general comments until July 23, 2022, and the new legislation is expected to be issued soon after that. During the public hearing period, any interested parties can comment on the SEC’s proposed principles. The key proposed points are outlined below. Conflicts of Interest Similar to SEC-approved financial advisors for securities offerings, ICO portals must be clear of conflicts of interest when representing issuers in a coin offering. According to the draft regulation, the following conflicts of interest are prohibited: The ICO portal (and certain individuals as specified by the SEC) directly or indirectly holds a prohibited amount of shares in the issuer, its affiliates, or its subsidiaries. If the issuer is not a listed company, any shareholding or portion thereof is prohibited. If the issuer is a listed company on the Stock Exchange of Thailand (SET), the shares held by the ICO platform may not total more than five percent of the total voting rights. The issuer (and certain individuals as specified by the SEC) directly or indirectly holds shares in the ICO portal in any amount if the ICO portal is not a listed company, or totaling more than five percent of the voting rights if the ICO portal is listed on the SET. Any of the ICO portal’s directors or executives, or the head of the department responsible for screening the ICO project, is also a director in the issuer. The ICO portal has
June 30, 2022
On May 30, 2022, Thailand’s Securities and Exchange Commission (SEC) announced that it would start regulating ready-to-use utility tokens, a type of digital token that had previously been exempted from the SEC’s approval and regulatory control. A public forum was open for comments from various stakeholders until June 29, 2022, and the draft regulation is expected to be issued soon. So far, the SEC has only supervised the issuance of not-ready-to-use utility tokens—digital tokens with the underlying right to acquire specific goods or services, which cannot be utilized upon issuance but at a later date. Due to the growing digital asset industry and lack of regulatory control, ready-to-use utility tokens have become more popular and many are listed for trading in digital asset exchanges. The SEC claimed that it is now necessary to regulate ready-to-use utility tokens as some issuers appeared to be exploiting the regulatory loophole to manipulate the price and supply of these tokens in both the primary and secondary markets, while providing insufficient data disclosure to investors. The SEC’s proposed principles include the following key points: Pre-Approval Requirements The same pre-approval requirement applicable to not-ready-to-use utility tokens will apply to ready-to-use utility tokens which an issuer intends to list on a digital asset exchange. This means that the issuer must proceed with the standard formalities, i.e., obtaining prior approval from the SEC, filing a draft prospectus, and offering the approved tokens via a SEC-approved ICO portal operator only. The SEC offers a fast-track (15 days) approval for qualifying ready-to-use utility tokens, which are those with plain-vanilla characteristics; with an offering price corresponding to the value of the underlying goods/services; for which the supply of goods and services does not vary with the price of the tokens (i.e., fixed coins); and which are not intended to be
June 30, 2022
Thailand’s Personal Data Protection Act B.E. 2562 (2019) (PDPA) became fully effective and enforceable on June 1, 2022. To ensure that the PDPA will be smoothly and efficiently enforced, the Personal Data Protection Commission (PDPC) is issuing various subordinate regulations. On June 20, 2022, the first set of these regulations was issued and published in the Government Gazette, and according to the Ministry of Digital Economy and Society (MDES), another set of subordinate regulations is expected to be issued by the end of June 2022. The first set consists of the following four subordinate regulations:   1) Notification of the PDPC Re: Exemption to the Record of Processing Activities Requirement for Data Controllers that Are Small Businesses B.E. 2565 (2022) (“ROPA Exemption Notification”) Under the PDPA, data controllers are obligated to prepare and maintain a record of processing activities (ROPA) containing information specified in Section 39 of the PDPA, including the personal data collected, the purposes of the processing of the personal data, the retention period, etc. However, under this ROPA Exemption Notification, a data controller will be exempted from the obligation to prepare and maintain a record of such required information (except information related to the rejection of a request from a data subject to exercise (i) right of access; (ii) right to data portability; (iii) right to object; and (iv) right to rectification), if its business falls within the scope of any of the following: Small or medium-sized business according to the law on small and medium-sized enterprise promotion, defined as follows: Community enterprise or social enterprise, as referred to under the law on community enterprise promotion. Social enterprise, as referred to under the under the law on social enterprise promotion. Cooperative, cooperative union, or agriculturist’s group under the law on cooperatives. Foundation, association, religious body, or