Vietnam's new AI law sets a precedent for Southeast Asia, but analysts warn it may stifle innovation and deter foreign investment.

Southeast Asian countries are racing to assert control over their data flows, driven by a potent mix of nationalist sentiment and security anxieties. But analysts warn that while certain measures may deliver domestic economic benefits, the broader push risks undermining innovation, deterring foreign investment and even cutting the region off from the global digital economy. On March 1, Vietnam became the first Southeast Asian nation to have in force a comprehensive law on artificial...