Vietnam’s Artificial Intelligence Law will serve as a launchpad for innovation and a key driver of national competitiveness, using regulatory incentives such as sandbox mechanisms and AI development funds, according to Tran Van Son, Deputy Director of the National Institute for Digital Technology and Transformation.

At a year-end press briefing hosted by the Ministry of Science and Technology on December 31, Mr. Son emphasized the law’s historic importance in establishing a legal framework that both fosters innovation and manages potential risks.

He noted that in the era of the Fourth Industrial Revolution, AI has evolved beyond a technological tool to become a strategic infrastructure, deeply influencing production, governance, and social structures.

“The passage of this law by the National Assembly marks a pivotal and inevitable step,” he said. “It is designed to fill legal gaps, address emerging challenges, and shift our mindset from passive adaptation to proactive innovation - positioning AI as a core engine of economic growth.”

The law is grounded in the principles of safe, transparent, responsible, and human-centered AI development and application. It recognizes AI as an assistive tool, not a replacement for human decision-making, and underscores the need to align AI progress with national interests and citizen rights.

In terms of scope, the law comprehensively governs all AI-related activities in Vietnam, including research, development, deployment, and usage of AI systems - excluding those used solely for national defense, security, and cryptographic purposes due to their sensitive nature.

It applies to all Vietnamese organizations and individuals, as well as foreign entities engaged in AI activities within Vietnam’s territory, thereby creating a legal basis to regulate cross-border AI operations and affirm national sovereignty.

Mr. Son explained that the law was designed as a framework law consisting of 8 chapters and 35 articles, focusing on fundamental principles while granting the government flexibility to issue detailed regulations to keep pace with rapid technological changes.

The legislation targets six core areas:

Defining development policies and principles for AI
Creating a risk-based regulatory mechanism
Developing AI infrastructure and asserting national AI sovereignty
Fostering innovation ecosystems and AI talent
Establishing AI ethics and responsibility standards
Enhancing inspection, enforcement, and transparency to build public trust

Leaders from the National Institute for Digital Technology and Transformation believe the law will help Vietnam overcome institutional, infrastructural, data, and funding barriers, transitioning the country from a technology consumer to a creator of value.

On the economic front, the law facilitates innovation and competitiveness by offering incentives like regulatory sandboxes and AI development funds.

On the societal level, it establishes a legal corridor to protect citizens’ rights, especially against ethical risks posed by AI.

Importantly, the law also aims to ensure sovereign control over language models and localized data, enabling Vietnam’s AI systems to deeply understand the country’s cultural context while safeguarding national interests in cyberspace.

Du Lam