Some 700,000 Rohingya Muslims fled Rakhine after government troops led a brutal crackdown in Myanmar's Rakhine state in response to attacks by the Arakan Rohingya Salvation Army on 30 Myanmar police posts and a military base in August 2017.
"There are of course ways in which, with hindsight, the situation could've been handled better," Suu Kyi said at the World Economic Forum on ASEAN in Hanoi.
"But we believe that in order to have long-term security and stability we have to be fair to all sides. We can't choose who should be protected by rule of law," she said.
(Reporting by James Pearson, Writing by A. Ananthalakshmi)