Vietnam Enacts First Artificial Intelligence Law

On December 10, 2025, Vietnam's 15th National Assembly passed the country's inaugural Law on Artificial Intelligence (AI), marking a significant step in regulating AI activities nationwide. The law, comprising eight chapters and 36 articles, took effect on March 1, 2026.

Scope and Provisions

The AI Law establishes a comprehensive legal framework governing the research, development, deployment, and use of AI systems. Key provisions include:

• Risk Classification: AI systems are categorized based on risk levels, with corresponding regulatory requirements to ensure safety and ethical use.
• Transparency and Accountability: Operators of AI systems are mandated to maintain transparency, provide clear explanations of AI decisions, and implement labeling for AI-generated content.
• Incident Management: The law outlines responsibilities for managing and responding to AI-related incidents, ensuring prompt action to mitigate potential harms.

Penalties and Incentives

To enforce compliance, the law stipulates administrative fines up to VNĐ2 billion (approximately US$75,800) for organizations and VNĐ1 billion for individuals violating its provisions. In cases of severe infractions, fines may reach up to 2% of the offending entity's revenue from the preceding year.

Conversely, the law introduces development mechanisms to foster AI innovation, including:

• Incentives: Top-tier benefits for AI research and development initiatives.
• Controlled Testing: Establishment of sandbox environments for safe experimentation with AI technologies.
• Funding Support: Creation of a National AI Development Fund and a voucher scheme to assist startups in the AI sector.

Oversight and Implementation

The Ministry of Science and Technology is designated as the lead coordinator for AI activities, ensuring centralized oversight and effective implementation of the law's provisions.

This legislative milestone underscores Vietnam's commitment to fostering a responsible and innovative AI ecosystem, balancing technological advancement with ethical considerations and public safety.