Vietnam Tax Department Imposes Strict AI Usage Limits to Protect Taxpayer Data

Vietnam's Tax Department has enacted a new regulation on information security concerning public AI tools, establishing strict limitations on how tax officials handle taxpayer information and sensitive data. This regulation is a response to the increasing risks of data leakage amid the rapid evolution and widespread adoption of AI technology. According to the new rules, tax officials are prohibited from uploading, downloading, or sharing taxpayer personal information, state secrets, and system confidential information such as passwords, API keys, digital certificates, or source codes on public AI tools. Such highly confidential data will only be permitted for use upon approval from authorized authorities or within secure AI environments managed by the tax department. This measure is seen as a significant step in protecting taxpayer privacy and ensuring national security within the context of expanding AI technology utilization in Vietnam. While the application of AI can contribute to operational efficiency, the leakage of confidential information could lead to severe consequences, prompting the authorities to adopt a preventive approach. Within Vietnam's one-party system, maintaining national stability and public trust is paramount, and such reinforcement of information management can be understood as part of these efforts. For Vietnam, which continues to experience economic growth, promoting digitalization is essential, but simultaneously strengthening cybersecurity and data protection is an urgent task. Particularly, given its complex relationship with China, the protection of state secrets requires extreme caution, and this new regulation underscores its importance.