Vietnam has brought its new artificial intelligence law into force, putting in place one of the region’s most comprehensive frameworks for how the technology is used.

The Law on Artificial Intelligence came into effect on 1 March 2026. It introduces formal requirements that apply to both domestic organisations and foreign companies operating in the country.

For many businesses, the impact will be immediate.

Clear Rules Replace Broad Guidance

Across Southeast Asia, AI has largely been guided by recommendations and policy frameworks.

Vietnam has taken a firmer approach.

The new law sets out obligations that companies are expected to meet. It also gives authorities a clearer basis to act when issues arise, particularly in cases involving harm, misuse or lack of accountability.

This comes at a time when AI adoption in Vietnam has already moved into the mainstream. Around 73% of companies are using AI in some form, though only a small proportion have deployed it at scale .

A Risk-Based Approach

The law classifies AI systems according to their level of risk.

Systems that could affect safety, legal rights or public interests fall into higher risk categories and are subject to tighter controls. Lower risk systems face fewer requirements, though they remain under oversight.

At the same time, the law defines responsibility by role. Organisations may be considered developers, providers or deployers, depending on how they build or use AI systems. In practice, many companies will fall into more than one category.

This expands the scope of accountability beyond technology firms to include businesses that rely on AI in their operations.

Practical Changes for Companies

For higher risk systems, the requirements go beyond policy.

Companies must be able to explain how their AI systems operate and allow for human intervention where needed. They are expected to monitor performance, maintain records and respond to incidents that may cause harm.

Transparency is also addressed directly. Users must be informed when they are interacting with AI, and content generated by AI, particularly audio, images or video, must be clearly identifiable.

These measures affect how systems are built and used on a day to day basis.

Balancing Oversight and Development

Alongside regulation, Vietnam is also moving to strengthen its domestic AI capabilities.

Plans are in place to expand national AI infrastructure, including computing resources and datasets. A regulatory sandbox will allow controlled testing of new applications, while funding initiatives aim to support research and adoption.

The timing reflects the pace of growth in the sector. Vietnam’s AI market was valued at around US$932 million in 2025 and is projected to grow to nearly US$7 billion by 2031, one of the fastest growth rates in the region .

An Ongoing Transition

While the law is now in force, several technical details are still being finalised.

These include criteria for classifying systems, standards for disclosure and procedures for reporting incidents. A transition period has been introduced, with most organisations expected to comply fully by 2027.

In the meantime, businesses are expected to begin aligning their operations with the new framework.

A Market Already Moving Fast

The introduction of the law comes as AI use continues to accelerate across the country.

Nearly 170,000 Vietnamese businesses have already adopted AI, with adoption growing by about 39% year on year . Among users, engagement is even more widespread, with over 80% of people interacting with AI tools regularly .

At the same time, most companies are still in early stages of implementation, with many systems running in pilot or limited deployment environments .

This gap between adoption and maturity is where the new requirements will be felt most.

A Wider Signal for the Region

Vietnam’s move is being watched across Southeast Asia, where most countries are still developing their approach to AI governance.

The law is seen as an early test of how binding regulation may work in practice, particularly as concerns grow over issues such as misinformation, fraud and misuse of AI systems.

Its effectiveness will depend on how it is implemented and how businesses respond.

Looking Ahead

For companies operating in Vietnam, the focus is shifting.

AI is already embedded across many business functions. The introduction of the law places greater emphasis on how these systems are managed, monitored and explained.

The question now is not whether AI will be regulated, but how quickly businesses can adjust to a more structured environment.