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Deep diveAI

Thailand and Vietnam Launch Coordinated AI Governance Framework, Excluding China and US Platforms

Thailand and Vietnam have jointly enacted the ASEAN Digital Sovereignty Act, requiring that AI systems used in government services, healthcare, and finance be trained on domestically hosted infrastructure and licensed through a new regional body.

Bangkok / Hanoi, November 10, 2027 — Thailand's National AI Strategy Committee and Vietnam's Ministry of Information and Communications jointly announced the entry into force of the ASEAN Digital Sovereignty Act (ADSA), a sweeping framework that mandates data localization and domestic AI licensing for critical sectors across both countries.

Under ADSA, any AI system deployed in government services, public healthcare, banking, or telecommunications within Thailand or Vietnam must be trained and operated exclusively on infrastructure physically located within ASEAN member states. Foreign AI companies—including OpenAI, Anthropic, Google's DeepMind, and China's Baidu and ByteDance—must either establish ASEAN-domiciled subsidiaries with local data centers or cease offering services in these markets by July 2028.

The law establishes a new Bangkok-based regulatory body, the ASEAN AI Governance Council (AIGC), which will issue licenses and conduct mandatory algorithmic audits of all covered AI systems annually. AIGC licensing fees are structured on a sliding scale based on user volume, with an estimated annual cost of $2–15 million for major platforms.

The legislation is framed as a response to perceived risks from foreign-controlled AI infrastructure and follows similar data localization movements in India and Indonesia. Thailand's digital economy is valued at $70 billion; Vietnam's at $45 billion—combined, they represent the fourth-largest digital market in Asia.

Industry groups have expressed concern. The Asia Internet Coalition warned that the compliance timeline is "operationally impossible" for global platforms, and that the licensing fees constitute a de facto trade barrier. US technology trade associations are reportedly in discussions with the US Trade Representative's office about potential retaliatory measures.

Observers note the timing is politically significant: ADSA effectively excludes Chinese AI platforms (which are already restricted under separate national security laws in both countries) and US platforms (which face no formal restrictions but now must compete on unequal footing). Domestic AI developers in Thailand and Vietnam are expected to be primary beneficiaries.