Steep Fines of Up to 1 Billion VND for Administrative Violations in This Sector

At the 10th Session, Minister of Science and Technology Nguyen Manh Hung, authorized by the Prime Minister, presented the Proposal for the Artificial Intelligence Law Project.

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The draft law, comprising 8 chapters and 36 articles, outlines regulations to promote research, development, provision, deployment, and utilization of artificial intelligence (AI) systems. It emphasizes human-centric principles, ensuring AI serves humanity without replacing it, with humans overseeing critical decisions. Transparency, accountability, and safety are paramount.

Key provisions classify and manage AI systems based on risk levels: Unacceptable Risk (systems causing irreparable harm), High Risk (threatening life, health, or legal rights), Medium Risk (potential for confusion or manipulation), and Low Risk (all other cases). Providers must self-classify systems before distribution, with medium and high-risk systems requiring notification to the Ministry of Science and Technology via a single-window portal. Authorities may reassess classifications.

Transparency mandates include labeling AI-generated or altered content (deepfakes) that could mislead, especially in advertising or communication. Prohibited systems include those facilitating illegal activities, exploiting vulnerabilities, or endangering national security.

High-risk systems undergo conformity assessments before deployment, either through certification or supplier self-assessment. Medium-risk systems must ensure transparency and labeling. The law establishes inspection mechanisms, penalties, and liability for damages, with providers and deployers of high-risk systems held strictly liable unless exempt under civil law.

Joint liability applies in multi-party involvement, based on control, foreseeability, and risk management measures. Proposed penalties for AI-related administrative violations reach up to 2 billion VND for organizations and 1 billion VND for individuals, or 2% of the previous year’s revenue for severe cases.

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