Vietnam Ushers in Comprehensive AI Law and Investment Reforms
Da Nang, Vietnam – On March 1, 2026, a suite of new laws and amendments comes into effect in Vietnam, poised to significantly reshape the nation’s investment landscape and accelerate the development of its artificial intelligence (AI) ecosystem. These changes, including the landmark AI Law, build upon existing frameworks and aim to position Vietnam as a key player in the global digital economy.
The Artificial Intelligence Law of 2025
The AI Law, passed by the National Assembly in December 2025, is Vietnam’s first comprehensive legislation specifically regulating the development, application, and governance of AI [1]. It adopts a “management-for-development” approach, balancing innovation with risk control, and aligning with international best practices.
Key provisions of the AI Law include:
- Transparency and Accountability: Providers of AI systems must inform users when they are interacting with AI, unless otherwise stipulated by law. [1]
- Deepfake Prevention: All AI-generated audio, images, and video files must be tagged with machine-readable identifiers to distinguish them from authentic content. [1]
- Financial Incentives: AI companies are eligible for the highest levels of funding benefits available under existing laws related to science, technology, digital transformation, and investment. [2]
- Government Procurement: The government will prioritize AI products in its tendering processes. [2]
- Regulatory Sandboxes: A controlled testing (sandbox) mechanism allows for the testing of new AI systems in a low-risk environment, with potential exemptions from full compliance requirements. [2]
- National AI Development Fund: The establishment of a National Fund for the Development of Artificial Intelligence, providing flexible funding for infrastructure, workforce training, core technology development, and startup support. [2]
- Support for SMEs: Specific support policies for startups and slight businesses, including assistance with conformity assessment costs and access to shared data. [2]
Investment Law Amendments
Effective March 1, 2026, amendments to the Investment Law reduce the number of conditional investment and business sectors by 38 [1]. The government is also mandated to publish lists of sectors requiring licensing and certification, as well as those transitioning to a post-inspection management system.
Other Key Legislative Updates
Alongside the AI Law and Investment Law amendments, the following legislation also takes effect on March 1, 2026:
- Planning Act 2025: Clarifies and unifies the national planning system, including provisions for resolving conflicts between different development plans. [1]
- State Secrets Protection Act 2025: Expands the scope of information considered state secrets, extending the authority to approve copying and photographing of classified documents to municipal-level People’s Committees. [1]
- Insolvency and Restructuring Act 2025: Introduces simplified insolvency procedures for smaller companies with limited creditors and debt, streamlining the process for financially distressed businesses. [1]
Da Nang Leads the Way
These national-level changes complement the ongoing Da Nang Smart City AI Initiative, a strategic framework aiming to transform Da Nang into a leading AI hub by 2030 [1]. Da Nang was recognized as Vietnam’s Smart City of 2025, demonstrating its commitment to AI in public services and urban management. [1]
The combined effect of these legislative and strategic initiatives signals a strong commitment from Vietnam to foster innovation, attract investment, and establish itself as a competitive force in the rapidly evolving world of artificial intelligence.
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