Vietnam’s new law regulating artificial intelligence could become Southeast Asia’s first real test of whether governments in the region are ready to move from voluntary guidelines to binding regulation, a shift analysts say could reshape how companies deploy AI across the region.

The legislation, which took effect on Sunday, introduces a risk-tiered model where AI providers – both local organisations and foreign entities with a presence in the country – must classify their systems as low, medium or high risk based on guidelines from the Ministry of Science and Technology.

Companies must also explicitly label AI-generated content such as deepfakes and disclose to customers whether they are interacting with an AI bot instead of a human agent.

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Vietnam’s National Assembly passed the law in December. The approach, which resembles the European Union’s AI Act, places a strong emphasis on accountability, transparency and safety.

The Southeast Asian nation joins a small cohort, including the EU and South Korea, that have enacted legislation for AI, even as countries around the world move to implement guidelines and regulations on generative AI use.

A Vietnamese shopkeeper uses her phone while waiting for customers at a grocery store in Hanoi on February 27. Photo: AFP
A Vietnamese shopkeeper uses her phone while waiting for customers at a grocery store in Hanoi on February 27. Photo: AFP

The law “paves the way for Vietnam to deeply integrate with international standards while maintaining digital sovereignty”, the government said in a December report.