Vietnam to offer AI and tech investment incentives, tightens AI risk management

Vietnam is set to implement several new policies in August aimed at promoting technological advancement and environmental protection. A significant change includes a 5% incentive for investors applying cutting-edge technology to mitigate environmental pollution, effective August 21.

This incentive, outlined in Government Decree 274/2026, targets projects with a high potential for negative environmental impact. Investors who demonstrate the best application of advanced or high-tech solutions to reduce pollution will receive a 5% advantage in the tender evaluation process. Eligible entities include science and technology enterprises, high-tech businesses, innovative startups, and innovation centers.

In parallel, Prime Minister's Decision 33/2026, effective August 15, establishes a list of high-risk artificial intelligence (AI) systems that will face stringent monitoring. These systems operate in crucial societal domains such as education, ethnic and religious affairs, legal proceedings, transportation, and banking. An AI system is classified as high-risk if it has the potential to cause significant harm to life, health, legal rights, or impact public interest and national security.

Furthermore, starting August 21, purchasing duty-free goods will become more streamlined under Government Decree 273/2026. This policy leverages digital data connections from national and specialized databases, eliminating the need for buyers to present physical copies of personal documents if their information is already integrated into the system. This update simplifies transactions for travelers, international passengers, and seafarers, removing previous hurdles that required proof of eligibility for duty-free purchases.