Vietnam is rapidly emerging as a key destination for R&D centers, AI platforms, and digital technology investments. Should foreign-invested enterprises and technology companies seize this opportunity?
Since late 2025, Vietnam has enacted and amended a series of critical legal instruments to promote the development of artificial intelligence (“AI”), including the Law on Artificial intelligence 2025 (“AI Law 2025”), the Law on Science, Technology and Innovation (“STI Law”), the Law on Investment, the Law on High Technology, and the Law on Digital Technology Industry. These legal instruments collectively establish a relatively comprehensive regulatory framework for AI research, development, and application in Vietnam.
As Vietnam positions itself as a regional hub for innovation (“R&D”), and digital technology, many foreign-invested enterprises (“FIEs”) are considering establishing R&D centers, AI platforms, data centers, and AI product development operations in Vietnam. However, understanding the incentive mechanisms and eligibility conditions is critical to optimizing investment structuring and mitigating legal risks.
In this article, BLawyers Vietnam highlights 05 key issues that AI organizations and individuals should consider from early 2026 when investing in and operating in Vietnam.
1. AI officially recognized as a national priority sector
The AI Law 2025 establishes, for the first time ever, a dedicated national policy framework for AI. Under this framework, the State encourages AI research, development, deployment, and application across socio-economic sectors, science and technology, public administration, and digital transformation.
The STI Law and national digital transformation strategies further identify AI as a foundational and strategic technology for the digital economy.
From a legal perspective, the classification of AI as a priority development sector serves as a policy basis to activate incentive regimes under the Law on Investment, Law on High Technology, and Law on Tax. Accordingly, AI projects may be considered for investment incentives or special incentives, depending on project scale, technological sophistication, and spillover impact.
2. Attractive investment incentives for AI and high-tech projects
Under the Law on Investment and the list of incentivized sectors, scientific research, technological development, high-tech product manufacturing, and R&D centers are eligible for investment incentives.
For AI projects, enterprises may be considered for the following incentives:
- Priority consideration for funding and financial support from high-technology science, technology and innovation programs and from funds established in accordance with the laws on science, technology and innovation;
- Eligibility for the highest tax incentives under laws on personal income tax, corporate income tax, export and import duties;
- Support for capacity-building and training in high-tech research and development;
- Support for protection, exploitation, and commercialization of intellectual property rights related to high technology;
- Eligibility for financial support for the investment in, operation of, or lease of shared-use laboratories and high-technology research facilities in accordance with the laws on science, technology and innovation; and
- Corporate income tax incentives, including preferential tax rates and tax holidays/reductions, in accordance with tax regulations.
Furthermore, under the STI Law, AI projects recognized as high-tech enterprises or high-tech projects may be entitled to enhanced tax and land incentives compared to ordinary investment incentives.
3. Strong support mechanisms for AI R&D under the STI Law
The STI Law establishes a dedicated legal regime for science and technology organizations, including research institutes, laboratories, and specialized R&D centers.
Science and technology organizations engaged in AI activities may access the following support mechanisms:
- Tax incentives for research, technological development, and innovation activities;
- Priority access to land and infrastructure in industrial zones, export processing zones, economic zones, high-tech parks, high-tech agricultural zones, and concentrated digital technology zones;
- Priority use of research equipment and facilities in shared laboratories, incubators, and R&D centers;
- Support for information dissemination, communications, and trade promotion;
- Support for research infrastructure, laboratories, and collaboration with research institutes and higher education institutions; and
- Policies for attracting and retaining domestic and foreign talents, experts, and scientists.
In practice, these incentives are not automatic and depend on the enterprise’s sector, eligibility conditions, and prevailing policies at the relevant time.
4. Support for digital technology industry and digital transformation
The Law on Digital Technology Industry introduces support mechanisms for AI platforms, data centers, cloud computing infrastructure, and innovation ecosystems.
AI enterprises may benefit from:
- Priority access to infrastructure in concentrated digital technology zones and the national innovation center;
- Support for controlled testing (sandboxing) of digital technology products and services;
- Incentives and support for innovative start-up projects in the digital technology industry;
- Support for collaboration with research institutes, universities, and start-up ecosystems;
- Preferential procurement and leasing of digital technology products and services funded by the State budget;
- Support for trade promotion, communications, and international cooperation; and
- Incentives and support under investment, tax, land, and other relevant laws.
These mechanisms are primarily administrative and infrastructural in nature and play a critical role in reducing the cost of deploying AI projects in Vietnam.
5. 5 practical considerations and risks for AI enterprises from 2026
Despite the relatively clear incentive framework, AI enterprises should be aware of the following practical considerations:
- Incentives are not automatic; enterprises must satisfy statutory conditions and obtain approval in the investment decision or project registration certificate;
- The distinction between R&D activities and commercial AI product operations may affect the ability to maintain tax incentives;
- Post-incentive audits and compliance monitoring are expected to be strengthened from 2026, particularly for high-tech and strategic AI projects;
- There is currently no detailed list of AI technologies eligible for special incentives, and early engagement with regulators is recommended to confirm project classification; and
- Compliance obligations related to data protection, cybersecurity, and AI governance may materially affect project structuring and operational costs.
Foreign-invested enterprises should approach AI incentive policies not merely from a tax and land perspective, but as an integral component of long-term project structuring and risk management strategies in Vietnam.
Legal support from BLawyers Vietnam
BLawyers Vietnam can assist enterprises with the following:
- Advising on the structuring of AI projects and the conditions for eligibility for investment incentives;
- Providing legal advice on science and technology, high technology, and the digital technology industry;
- Advising on and supporting tax and land incentive strategies for AI projects;
- Providing legal advice on labor matters and the attraction of foreign AI experts; and
- Assisting in liaising with competent state authorities during the appraisal and application of incentives.
The above is not official advice from BLawyers Vietnam. If you have any questions or suggestions about the above, please contact us at info@blawyersvn.com. BLawyers Vietnam would love to hear from you.
Date: 10 February 2026
Writer: Ha Le
