Legal Consulting on Artificial Intelligence (AI) in Vietnam

In recent years, artificial intelligence (AI) has become one of the fastest-growing technology fields globally, with extensive applications in many industries and fields. In Vietnam, although AI is still in the development stage, it has received significant attention from enterprises. However, the legal issues surrounding the application and management of this technology are complex and receive much attention. Below, Viet An Law will provide legal consulting on Artificial Intelligence (AI) in Vietnam.

Legal challenges in the field of artificial intelligence (AI) in Vietnam

• Incomplete legal regulations: Although Vietnam has a number of policies related to AI and high technology, specific legal regulations on AI are still lacking and inconsistent. This can cause difficulties for enterprises when implementing AI projects.
• Data may be inaccurate: If training data is not diverse enough, AI models may produce biased or inaccurate results. This can lead to discrimination or other negative impacts on marginalized groups.
• Security and privacy issues: With the ability to analyze and process huge amounts of data, AI can become a powerful tool for collecting, storing and using personal information. If not carefully managed and protected, this can lead to abuse and invasion of human privacy.
• Liability: When AI systems make decisions that affect human lives, determining the responsibilities of the parties involved becomes complex. This can lead to unintended consequences, such as unfairness or harm to affected individuals and organizations.

Consulting on establishing enterprises in the field of AI

Enterprises in the field of AI can be established as a joint stock company, a limited liability company, or other forms of enterprise in accordance with Vietnamese law. However, enterprises need to pay attention to some legal issues when establishing in this field:

• Licenses and registration of operations: Enterprises operating in the AI ​​field must register a business license with the business registration authority.
• If an enterprise in the ​​field of AI is established by a foreign investor, it is necessary to register for investment before registering the enterprise.

The areas of operation of enterprises in the field of AI include:

• Research, develop, and deploy Artificial Intelligence (AI) software products and solutions for domestic and foreign units.
• Providing solutions for many different industries, from hotels, and transportation to finance, banking, or even healthcare, and education such as virtual receptionist software, virtual presenter software, and automatic customer care solutions,…
• Using AI to solve all problems of organizations and enterprises such as Business (automating sales activities, smart shopping suggestions, detecting emergencies); Management (classifying and managing data, digitally transforming business processes); Marketing (Chatbot and Voicebot automatic response, brand awareness, and market research, personalizing the human experience, predicting and minimizing customer churn).
• Digital Transformation Training & Consulting Services.,…

Consulting on business incentives in the ​​field of AI in Vietnam

Vietnam is currently promoting the development of artificial intelligence to make artificial intelligence an important technology field in Vietnam. Currently, this field has many special incentives such as:

• Tax incentives: Enterprises investing in high-tech sectors, including AI, can enjoy tax incentives, such as corporate income tax exemptions for the first few years or tax incentives for high-tech products. The Vietnamese government also has policies to attract foreign enterprises to invest in this sector through free trade agreements (FTAs).
• High-tech zones and related incentives: AI enterprises can also register to operate in high-tech zones, which offer incentives and investment support in terms of land, taxes, and infrastructure to support technology research and development.
• Support from technology investment funds, research, innovation, and technology development funds of the State or international organizations. These funds help enterprises reduce investment costs in research and technology innovation.

Consulting on intellectual property protection in the field of AI

Some subjects of AI technology that can be registered for intellectual property protection include:

• Patents: AI technology can be protected by patent rights if it fully meets the criteria of novelty, inventiveness, and industrial applicability. Patents can include algorithms, machine learning models, software, and hardware solutions for AI systems.
• AI software copyright: AI software, source code, or technologies can be protected under copyright. This helps protect the proprietary AI software that enterprises develop from unauthorized copying.
• Trademarks: If AI is developed into branded products or services (e.g. AI applications, automation systems, data analytics software), trademarks will help protect the product’s brand, prevent unauthorized use, and enhance reputation.

However, the issue of intellectual property rights for works and inventions created by AI is creating legal challenges, because under the Law on Intellectual Property of Vietnam, intellectual property rights are only imposed on intellectual properties created by humans. In addition, the Civil Code 2015 does not recognize the subject as a machine or computer program, so it would be impossible to determine the legal status of AI as a subject in the law.

Therefore, enterprises need to have clear contracts that stipulate ownership of AI creative products, especially in research and development collaborations or when AI is involved in the creative process.

AI liability and dispute resolution

As analyzed, AI is not considered a subject with legal status. Therefore, AI cannot bear legal responsibility on its own. However, when AI performs an action that may cause damage or infringe the rights of a third party, legal responsibility will belong to the individuals or organizations involved, such as:

• AI Owner: The person or organization that owns, develops, deploys, or controls the AI ​​ They may be held liable if the AI’s actions cause harm.
• AI developer or manufacturer: If the AI ​​is developed by a company or organization, that company may be held liable if the AI ​​is defective or fails to meet security, safety, or performance requirements.
• AI users: If AI is deployed to serve a specific purpose (e.g., self-driving cars), the user or operator of the AI ​​system may be held liable if their actions or the way the AI ​​is used causes harm.

Disputes in the field of AI can arise in many different situations, especially regarding liability for damages caused by AI. There are several methods of resolving disputes in the field of AI, including dispute resolution through court, arbitration and mediation. Depending on the type of dispute and the parties involved, each method will have its advantages and disadvantages.

Notes on AI-related contracts

When developing or deploying AI products, stakeholders need to build strong contracts that clearly define each party’s responsibilities:

• AI developers: Need to ensure that AI products meet security and quality requirements, and do not cause damage to users or third parties. Terms related to warranty, repair, or compensation for damage in case of AI errors need to be specifically regulated.
• AI users: Users need to follow the instructions for use, and ensure that AI is used for its intended purpose and does not distort the results.

Enterprises developing and deploying AI need to monitor changes in legislation to ensure compliance with regulations on security, intellectual property, and personal data. At the same time, it is necessary to implement testing, quality control, and security processes to minimize risks and potential damage from the use of AI.

Legal consulting on Artificial Intelligence (AI) in Vietnam services by Viet An Law

• Consulting on enterprise establishment and legal procedures to note in the ​​field of AI;
• Intellectual property (IP) consulting, IP protection management;
• Consulting on preferential policies and investment support in the field of AI;
• Consulting on contracts and notes on legal responsibilities;
• Consulting on dispute resolution and risk prevention in the field of AI;
• Other legal services in the ​​field of AI such as personal data, sub-licenses for business, taxes,…

Above is legal consulting on Artificial Intelligence (AI) in Vietnam. If you have any related questions, please contact Viet An Law for the best advice and support!