Vietnam has pioneered global digital regulation by enacting the world’s first standalone law dedicated exclusively to the digital technology industry, establishing a comprehensive regulatory framework to position itself as a global technology hub in AI, semiconductors, and digital assets. The Digital Technology Industry Law (DTI Law), enacted on June 14, 2025, aims to attract investment, stimulate innovation, cultivate high-quality human resources, and ensure responsible, secure, and sustainable growth of digital technologies.
Direct Regulatory Impact on Industries
The DTI Law introduces a risk-based approach that categorizes AI systems into high-risk, high-impact, and other classifications. High-risk AI systems are those that, in certain applications, may pose significant threats or harm to individuals or the public interest while high-impact systems are designed for multi-purpose use, involving a large user base, extensive parameters, and massive data processing capabilities.
These systems are subject to stringent regulatory requirements, including technical specifications, transparency in data storage and disclosure, data governance, monitoring and inspection, and cybersecurity obligations. AI systems that directly interact with humans must clearly notify users of their AI nature, and AI-generated digital technology products listed by the Ministry of Science and Technology must carry identifiable markers detectable by users or machines.
For semiconductors, the law focuses on breakthrough chip development across sectors, closely linked to the global ecosystem of research, design, manufacturing, packaging, and testing. Digital assets receive legal recognition for the first time, classified into virtual assets, crypto assets, and other digital assets, excluding securities and regulated financial instruments.
Corporate Compliance Requirements
Companies must adhere to seven core principles when developing and deploying AI systems. These include taking a human-centered approach that upholds ethical values, inclusivity, flexibility, equality, and non-discrimination, ensuring transparency, accountability, and explainability while maintaining human control over AI systems.
Enterprises developing or deploying high-risk and high-impact systems must begin mapping their AI inventories and preparing documented risk assessments to accelerate future compliance. Essential requirements include adherence to data protection and privacy regulations, maintaining control over AI algorithms and models, and implementing effective risk management throughout the entire AI system lifecycle.
Semiconductor companies must align closely with the government’s upcoming semiconductor development strategy to identify potential opportunities, while businesses providing digital asset services must ensure cybersecurity, prevent money laundering and terrorist financing, and meet inspection and enforcement requirements.
Industry Response and Strategic Adaptations
Vietnam’s innovative regulatory approach has garnered positive responses from technology companies. Projects in AI system development, AI data centers, and semiconductor chip R&D and production, including design, packaging, and testing, are classified as specially prioritized investment sectors and benefit from preferential treatment in areas such as taxation, land use rights, and access to other legal benefits.
Innovative startups in AI and semiconductors qualify for direct funding for workforce training, talent acquisition, R&D, pilot production, consulting, and technology upgrades. The semiconductor industry receives additional special mechanisms, with incentives extended to projects producing materials, machinery, and components that directly support chip manufacturing. Used equipment importation for semiconductor production is permitted if it meets technical criteria set by the Ministry of Science and Technology.
Companies are responding by establishing compliance frameworks while actively leveraging Vietnam’s investment incentives to gain competitive advantages in the rapidly evolving digital technology landscape.
International Regulatory Trends and Global Harmonization
Vietnam’s DTI Law adopts a risk-based approach similar to the EU’s AI Act while presenting a unique framework that reflects Asian market characteristics. The law demonstrates a balanced approach that harmonizes Vietnam’s digital industry with international standards while safeguarding public interests and national security.
The law will become fully effective on January 1, 2026, with the government delegated to provide necessary implementation guidelines and details. Companies are encouraged to closely monitor forthcoming guiding regulations under the DTI Law to ensure compliance and fully capitalize on investment incentives and support when rolling out their products and services in the Vietnamese market.
This groundbreaking legislation positions Vietnam at the forefront of digital technology regulation, offering a model for other emerging economies seeking to balance innovation promotion with responsible governance in the AI era.
