Vietnam has formally implemented Southeast Asia’s first comprehensive standalone law regulating artificial intelligence, marking a significant milestone in the region’s approach to AI governance.

The Law on Artificial Intelligence (No. 134/2025/QH15), passed by Vietnam’s National Assembly on December 10, 2025, took effect on March 1, 2026. The legislation establishes a nationwide regulatory framework governing the research, development, deployment, and use of AI systems.

The move positions Vietnam among early adopters of formal AI regulation globally, alongside jurisdictions such as the European Union and South Korea.

Risk-Based Framework

The law adopts a risk-based regulatory model inspired by the EU AI Act.

AI systems are classified according to risk levels, with higher-risk applications, including those used in health care, finance, and education, subject to stricter compliance requirements. The framework mandates human oversight for generative AI systems to reduce risks such as misinformation, copyright violations, and online abuse.

Under the law, both Vietnamese and foreign entities operating AI systems in Vietnam fall within scope, though applications related to defense, security, and cipher technologies are excluded.

Key Compliance Requirements

The legislation introduces several core obligations:

• Transparency and accountability standards, with further details to be specified in implementing decrees.
• Liability provisions for AI-related damages.
• Mechanisms for recalling systems in cases of serious failure.
• Service quality and compliance monitoring requirements.

The law replaces AI-related provisions previously embedded in Vietnam’s Law on Digital Technology Industry (No. 71/2025/QH15), consolidating oversight into a dedicated statute.

Transition Period

AI systems already in operation before the March 1 effective date are granted a compliance grace period.

For most systems, companies have up to 12 months—until March 1, 2027—to align with the new rules. High-risk sectors such as health care, finance, and education may receive up to 18 months, extending compliance deadlines to September 1, 2027.

The transitional window is intended to allow companies time to adjust governance structures and technical safeguards without disrupting ongoing operations.

National AI Strategy

Beyond regulation, the law aligns with Vietnam’s broader ambitions to become a regional AI hub.

Government initiatives linked to the legislation include plans for a national AI computing center, expansion of domestic data resources, and development of Vietnamese-language large language models. Policymakers have framed the law as a means of promoting digital sovereignty while encouraging innovation and foreign investment.

Officials have emphasized balancing competitiveness with safeguards, signaling that Vietnam intends to integrate international regulatory norms while advancing its domestic AI ecosystem.

Industry Reaction

While many observers view the framework as a forward-looking step in regional AI governance, some industry groups have raised concerns about implementation timelines and compliance burdens.

Business associations have urged authorities to ensure that secondary regulations remain flexible and avoid overly prescriptive requirements that could hinder innovation.

Regional Significance

Vietnam’s move establishes the country as the first in Southeast Asia to enact a standalone AI statute, potentially setting a precedent for neighboring economies considering similar measures.

As AI systems become more deeply embedded in public services, finance, and digital platforms across ASEAN, Vietnam’s regulatory model may serve as an early template for balancing technological growth with risk management in emerging markets.

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