Vietnam’s emergence as a hub for artificial intelligence (AI) innovation presents compelling investment opportunities for businesses. The rapid advancement of AI applications, ranging from predictive analytics to automated processes, is transforming the Vietnamese economy across various sectors such as finance, manufacturing, agriculture, healthcare, transportation, and customer service. However, the increasing reliance on personal data in these applications necessitates a robust legal framework to safeguard individual privacy and maintain public trust. This article aims to provide investors and businesses with a comprehensive update of Vietnam’s legal landscape for investments in AI sector, and the interplay between the nation’s ambitious AI development goals and its increasingly stringent personal data protection regulations. 1. DEVELOPMENT OF AI REGULATIONS IN VIETNAM 1.1. Policy framework On 27 September 2019, the Political Bureau issued Resolution No. 52-NQ/TW on a number of policies for Vietnam’s proactive engagement in the Fourth Industrial Revolution (Industry 4.0). In this Resolution, AI is highlighted as one of the cornerstone technologies for socio-economic transformation of the country. Subsequently, on 26 January 2021, the Prime Minister issued Decision No. 127/QD-TTg, setting out the national strategy for AI research, development and application by 2030. Specifically Vietnam targets to position itself among the top 4 in ASEAN and the top 50 in the world in this field by the year of 2030. Key objectives of this strategy include: (i) establishing a robust legal framework to support AI governance and innovation; (ii) developing state-of-the-art infrastructure; (iii) fostering a vibrant AI ecosystem by way of creating skilled workforce through education and training programs, providing incentives for investments in AI start-ups and R&D, etc.; (iv) promoting the adoption of...