Vietnam has formally passed its first comprehensive Artificial Intelligence (AI) Law, set to take effect on March 1, 2026. This legislation establishes one of the world’s earliest and most structured legal frameworks for AI governance, signaling Vietnam’s intention to balance innovation with risk management as it builds out its digital economy. The law introduces a risk‑based classification system, where AI systems are categorized according to the level of potential harm they pose — from low‑risk applications with minimal oversight to high‑risk systems requiring mandatory conformity assessments and government approval before deployment. These measures reflect global regulatory trends while aligning with Vietnam’s socio‑economic priorities.
Core principles of the law emphasize human‑centric development, safety, fairness, transparency, and accountability. AI systems must be developed and operated under meaningful human oversight, and providers must clearly label AI‑generated outputs and report incidents via a centralized portal. The legislation also prohibits applications deemed to pose unacceptable risks, such as certain real-time biometric surveillance without consent or deceptive deepfake technologies that could undermine public trust. Compliance obligations extend to foreign providers, who must designate local legal representatives responsible for regulatory adherence.
Beyond regulation, the law creates strategic opportunities for businesses. Vietnam is establishing a National AI Database for system registration and monitoring, and it plans to support innovation through a National AI Development Fund, grants, loans, and regulatory sandboxes where companies can test AI applications under relaxed conditions. The government is also recognizing AI models, algorithms, and data assets as lawful capital contributions, opening new paths for investment and financing. These incentives aim to attract both domestic startups and foreign investors while encouraging research and commercialization of AI technologies.
For businesses across key sectors, the law has significant implications. In healthcare, AI applications in diagnostics and patient‑care management could benefit from priority access to infrastructure and funding. Finance and fintech firms can use regulated AI for credit scoring, fraud detection, and digital payments, building consumer trust. In manufacturing and logistics, AI‑driven automation supports supply‑chain improvements and export competitiveness. Companies that integrate compliance into product development early and participate in sandbox programs may gain first‑mover advantages, turning regulatory alignment into a competitive asset in Vietnam’s evolving AI‑driven economy.
