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AI ambitions test Vietnam's balance between innovation, state control

By Choonsik Yoo and Hoa Dinh ( October 15, 2025, 03:59 GMT | Comment) -- Vietnam’s draft artificial intelligence law highlights the government’s drive to turn AI into a pillar of economic modernization while maintaining comprehensive state oversight of the technology’s development and use. The legislation mirrors the EU AI Act’s risk-based framework but goes further by mandating local legal representation for all foreign AI providers and tightening state control over data, infrastructure and compliance mechanisms. Although designed to secure technological sovereignty, experts warn that the law’s sweeping provisions and penalties could discourage foreign investment and slow innovation. The recently unveiled draft of Vietnam’s artificial intelligence law underscores the country’s ambition to rapidly build end-to-end AI capabilities as a springboard for economic modernization while maintaining strict state oversight of every dimension of this potentially disruptive innovation....

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