Vietnam Weekly: Vietnam enacts AI regime, fast-tracks flood fixes, deepens US defense ties

December 5, 2025 to December 11, 2025

This week's top 10 stories from Vietnam, selected from our daily intelligence briefs.

1. Parliament Passes First AI Law, Mandating Labels for AI Content and Creating National AI Fund

Vietnam’s National Assembly approved the country’s first standalone Artificial Intelligence Law, set to take effect on March 1, 2026, establishing a risk-based regulatory framework that emphasizes safety, human oversight, model transparency and digital sovereignty. The law mandates clear labeling of AI-generated audio, images and video (targeting deepfakes), imposes stricter obligations and independent assessments for “high‑risk” systems with strict liability for damages, and confirms that AI cannot hold intellectual property rights while human creators using AI remain eligible for protection.

To accelerate domestic capacity and equitable adoption, the statute creates a National AI Development Fund, supports a national HPC-based AI computing center and curated open datasets, and pilots regulatory sandboxes and AI vouchers for SMEs; deputies and industry urged clearer bans, measurable high-risk criteria, incident reporting and faster sandbox approvals. Minister of Science and Technology Nguyen Manh Hung framed AI as “national intellectual infrastructure,” and lawmakers plan final voting and detailed rules via government decrees after deliberations concluded December 11.

Local Coverage: vietnamplus.vn, tuoitre.vn, vnexpress.net, baotintuc.vn, vneconomy.vn

From daily briefs: 2025-12-05, 2025-12-07, 2025-12-10, 2025-12-11

2. PM Orders Nature-Based Measures for Mekong Delta Salinity and Fast-Tracks HCMC Flood Project; Free-Trade Zones Eyed by 2026

Prime Minister Pham Minh Chinh has ordered a nature-based, adaptive strategy to tackle subsidence, erosion, flooding, drought and saltwater intrusion in the Mekong Delta through 2035 with a 2050 vision, and directed mobilization of at least 35% non-state financing via PPP, BT, BOT and loans. At a government meeting he also prioritized inland waterway development in the Delta, nationwide air‑quality management pilots for Hanoi and Ho Chi Minh City under the National Action Plan 2026–2030 (vision to 2045, Decision 2530/QD‑TTg, 19 Nov 2025), and instructed ministries to act within current mandates or propose new Politburo mechanisms to close legal gaps.

Separately, the long-stalled HCMC anti‑flood project is being fast-tracked under Resolution 212/NQ‑CP (21 Jul 2025) with no major Politburo issues reported, and the Government reviewed a plan to roll out free‑trade zones starting in Da Nang, Haiphong and HCMC by 2026, expanding to 6–8 zones by 2030 and up to 10 by 2045 targeting 15–20% of GDP. The Environment Ministry also warned northern provinces of weather likely to push PM2.5 above AQI 150, posing near-term public‑health and economic disruption risks.

Local Coverage: thanhnien.vn, tuoitre.vn

From daily briefs: 2025-12-06, 2025-12-07

3. Parliament Passes Overhaul of Tech Transfer, High-Tech and AI Laws to Unlock Innovation and Investment

Vietnam’s National Assembly has approved sweeping updates to its innovation legal framework, revising the Law on Technology Transfer, the Law on High Technology, and enacting a new Artificial Intelligence Law to accelerate investment, commercialization and talent attraction. Key provisions: the amended Technology Transfer Law (effective April 1, 2026) allows equity contributions via technology assets, explicitly covers software, data and AI, narrows mandatory appraisal to high‑risk or environmentally sensitive transfers, permits state procurement of technology for public needs, and creates incentives for projects that build domestic R&D and design capacity. The High Technology Law (effective July 1, 2026) prioritizes strategic technologies with top‑tier incentives, introduces regulatory sandboxes and special policies to recruit high‑skill and foreign experts.

The AI Law introduces a risk‑based regime and government‑led governance mechanisms, creates a national AI fund and controlled testing pathways to speed safe deployment, and pairs preferential incentives with phased oversight. Officials framed the package as both an economic stimulus and a security-conscious modernization—Minister of Science and Technology Nguyen Manh Hung described an AI law as “an urgent requirement…to ensure strong development with high safety for critical risks.” For international professionals, the reforms signal clearer commercial pathways for tech transfers, enhanced incentives for inward and outbound investment, and potentially faster market entry via sandboxes and state procurement, while imposing targeted controls on higher‑risk projects.

Local Coverage: vnexpress.net, baotintuc.vn, vietnamplus.vn, vneconomy.vn, vietnamplus.vn, baotintuc.vn, vietnamplus.vn

From daily brief: 2025-12-11

4. US Navy’s USS Tripoli and USS Robert Smalls Make Four-Day Port Call in Da Nang, Highlighting Expanded Defense Ties

The US Navy amphibious assault ship USS Tripoli (LHA‑7) and guided‑missile cruiser USS Robert Smalls (CG‑62) made a four‑day port call in Da Nang, Vietnam, anchored off Tien Sa, conducting professional exchanges with the Vietnam People’s Navy, courtesy calls with municipal and military leaders, and community and cultural events. Led by Rear Admiral Thomas Shultz of Expeditionary Strike Group 7, the visit—occurring as the two countries mark 30 years of diplomatic ties—highlights expanded defense cooperation following the 2023 upgrade to a Comprehensive Strategic Partnership; Tripoli is capable of operating F‑35B aircraft and carrying a Marine Air‑Ground Task Force. US officials, including Ambassador Marc E. Knapper and Rear Admiral Shultz, framed the stop as concrete evidence of improving bilateral ties and continued humanitarian and security collaboration.

Local Coverage: com.vn, tuoitre.vn, vnexpress.net, vietnamplus.vn, baotintuc.vn

From daily brief: 2025-12-09

5. China Expands Electronic Warfare and ISR Footprint on Spratly Outposts, Heightening South China Sea Tensions

New satellite imagery from the Asia Maritime Transparency Initiative (CSIS) shows China has installed antenna arrays and sensor/communications equipment on Fiery Cross, Subi and Mischief Reefs in the Spratly Islands, creating an integrated intelligence, surveillance and reconnaissance (ISR) network and mobile electronic‑warfare (EW) capability. Analysts say the upgrades close surveillance gaps, improve target acquisition for Chinese air, naval and missile forces, and increase resilience against conflict or storms; the build‑out coincides with expanded Chinese naval and coast guard deployments in East Asian waters and a recent South China Sea live‑fire drill involving Type 075 and Type 071 amphibious ships.

The developments have raised concern in Tokyo and Taipei and are cited in the U.S. National Security Strategy’s renewed focus on deterring Chinese scenarios in the Taiwan Strait and South China Sea. Former U.S. Pacific Command intelligence director Carl O. Schuster warns the sensors enable faster, more accurate targeting of foreign aircraft, warships and submarines, while Hudson Institute analyst Satoru Nagao notes improved EW could allow China to jam radars when foreign patrols approach its artificial islands.

Local Coverage: thanhnien.vn

From daily brief: 2025-12-08

6. FTSE Sets September 2026 for Vietnam’s Inclusion in Global Benchmark Indices

FTSE will add Vietnam to its FTSE Global Equity Index Series in September 2026, following an interim checkpoint in March 2026 to confirm market readiness and implementation logistics. FTSE Index Policy Director Wanming Du said Vietnam has met the technical criteria for reclassification to Secondary Emerging Market status; the upgrade and index inclusion are separate steps, with the one-year lead time mirroring FTSE’s standard transition from Frontier to Emerging to give passive funds time to rebalance, exit Frontier positions, and set up trading, custody and operational arrangements.

FTSE will maintain a global broker model to facilitate access and will publish the list of Vietnam constituents about one month before inclusion, subject to liquidity and market-cap changes. FTSE expects the move to spur product development and broader market access for Vietnam; the March checkpoint will be the final confirmation before implementation in September 2026.

Local Coverage: vneconomy.vn

From daily brief: 2025-12-05

7. Green Transition Accelerates with Emissions Reporting Mandates and Carbon Market Pathway

Vietnam is tightening corporate obligations to cut greenhouse gases following its COP26 net-zero-by-2050 pledge, building on the 2020 Environmental Protection Law and Decree 06/2022 which require enterprises to inventory and report emissions and lay the groundwork for allocation of emissions quotas in high‑energy sectors such as thermal power, steel and cement. Authorities are running sector-specific pilots and emphasizing available decarbonization technologies (biomass, waste‑to‑energy, industrial upgrades), but identify finance as the principal bottleneck and are urging banks to mobilize capital for industrial retrofits and clean‑energy transitions.

Officials also highlight opportunities from a forthcoming carbon market enabled by MRV systems and green labeling that could enhance export competitiveness in jurisdictions with strict standards (notably the EU). Corporate awareness of emissions reporting has risen, yet significant capability and finance gaps remain among smaller suppliers and auxiliary firms, underscoring the need for targeted capacity building and financing mechanisms to scale the transition.

Local Coverage: vneconomy.vn

From daily brief: 2025-12-07

8. Parliament Passes Overhaul of Tax Administration and Personal Income Tax, Mandates E‑Invoices from 2026

Vietnam’s National Assembly has approved sweeping tax reforms that overhaul tax administration, amend personal income tax (PIT) and mandate e‑invoicing for households and individual businesses from January 1, 2026, with most laws taking effect July 1, 2026. Key measures require household/individual firms to issue e‑invoices, self‑determine annual revenue and face a VND 500 million annual non‑taxable revenue threshold; those below will be exempt from quarterly filing, invoicing and bookkeeping in 2026 but must notify tax authorities. E‑commerce platforms (including foreign ones) must withhold and remit taxes for sellers, tax authorities will auto‑generate returns from connected POS/e‑invoice data, lump‑sum taxation is abolished, and heavier compliance and documentation rules apply for firms with VND 3 billion+ revenue. Penalties for underreporting may include back taxes and fines of 1–3x the evaded amount.

On PIT, the reform raises the standard deduction to VND 15.5 million/month and dependent deduction to VND 6.2 million/month, cuts progressive brackets from seven to five (middle rates trimmed—second from 15% to 10%, third from 25% to 20%) while keeping the 35% top rate for monthly taxable income above VND 100 million; a new 0.1% levy on bullion transfers is introduced with a government‑set de minimis threshold. The Ministry of Finance estimates roughly 90% of 2.54 million active households will fall under the VND 500 million threshold, reducing taxes by about VND 11.8 trillion; experts urge phased enforcement, early adoption of POS/e‑invoicing tools and calibrated penalties to avoid disruption to small businesses and prevent tax‑avoidance schemes.

Local Coverage: tuoitre.vn, baotintuc.vn, vietnamplus.vn, vnexpress.net, vneconomy.vn, thanhnien.vn, com.vn

From daily briefs: 2025-12-07, 2025-12-08, 2025-12-11

9. Government Seeks Special Mechanisms to Fast‑Track North–South High-Speed Rail, Faces Scrutiny on Oversight Proposal

Vietnam’s government has asked the National Assembly to approve two special mechanisms to accelerate the 1,541 km North–South high‑speed rail project (estimated at VND 1.7 quadrillion / USD 67.3 billion): (1) carve out land clearance, compensation, resettlement and relocation of 110 kV‑and‑above power works as standalone projects funded by central and local budgets and implemented by provinces and Vietnam Electricity (EVN); and (2) authorize the National Assembly Standing Committee to adjust special policies when the Assembly is not in session. Officials argue the land‑clearance split will let provinces act in parallel with feasibility studies and speed delivery; the Economic and Financial Committee supports the split but insists it be treated as an independent component with clear feasibility, costs, land area and timelines, citing Long Thanh airport precedents. It rejected new delegation of policy‑adjustment authority as unnecessary given existing Resolution 172/2024.

The proposal highlights immediate implementation pressure in Quang Tri — where 190.68 km of the route will require 1,871.9 ha, affect 7,248 households (3,060 needing resettlement) and necessitate relocation of 21,046 graves at an estimated land‑clearance cost above VND 18.8 trillion — exposing fiscal, legal and coordination bottlenecks ahead of a December 2026 clearance target. The government also signals openness to PPP and private investment alongside public funding, warning that tailored incentives may be required to mobilize non‑state capital for the strategic, high‑cost infrastructure programme.

Local Coverage: vietnamplus.vn, baotintuc.vn, tuoitre.vn, thanhnien.vn, com.vn, vneconomy.vn, vnexpress.net

From daily briefs: 2025-12-05, 2025-12-06, 2025-12-09

10. Politburo Orders End to ‘Suspended’ Zoning, Fast-Tracks Urban Infrastructure and Legal Reforms by 2026

Vietnam’s Communist Party Politburo issued Conclusion No. 224 to implement Resolution No. 06, fast‑tracking a nationwide overhaul of urban planning and infrastructure with targets through 2030 and a 2045 outlook. The directive orders elimination of long‑standing “suspended” zoning plans, acceleration of overdue infrastructure projects, and tighter integration of planning with socio‑economic strategy, national defence and environmental protection. Crucially, the Politburo requires revision of laws on urban/rural planning, land, construction, underground space, utilities and public spaces by 2026, and administrative streamlining under a two‑tier local government model.

Policy measures include a target of 1 million social housing units completed by 2030, expanded eligibility for buyers and renters, tougher sanctions on developers who fail to deliver synchronized infrastructure, and greater transparency in real estate market management. Hanoi and Ho Chi Minh City are singled out for pollution control, climate resilience and development toward “globally civil” urban standards. For international investors and planners, the package signals accelerated project permitting and legal reform but also stricter regulatory enforcement and heightened emphasis on green and defence‑aligned urban priorities.

Local Coverage: vneconomy.vn

From daily brief: 2025-12-11

About This Weekly Digest

The stories above represent the most significant developments from Vietnam this week, selected through our AI-powered analysis of hundreds of local news articles.

Stories are drawn from our daily intelligence briefs, which synthesize reporting from Vietnam's leading news sources to provide comprehensive situational awareness for international decision-makers.