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Vietnam Approves Sweeping Data Law Amid Industry Worries

By  |  December 18, 2024

Vietnam’s National Assembly recently passed a data law designed to enhance digital governance and drive socio-economic development. The legislation, approved last month, seeks to improve coordination between local and central authorities through digital tools, per a statement from officials. However, concerns over data control and privacy loom large as the law’s implementation begins to take shape.

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    The law outlines two significant projects: a national data center managed by the Ministry of Public Security and a data exchange platform for trading data-related services and products. While these initiatives aim to centralize data management and foster digital innovation, questions remain unanswered about the specifics of the data exchange platform, including its service providers and the types of data it will handle.

    Government authorities have emphasized restrictions on certain types of data, barring the exchange of information related to national defense, security, international affairs, state secrets, and data collected without user consent. However, observers note that Vietnam’s authoritarian government has a history of applying broad interpretations to such categories. Critics warn this could lead to overreach in data usage, particularly under the guise of national security or public interest.

    The new law follows a pattern of tightening internet regulations in Vietnam. Recent years have seen the implementation of a cybersecurity law in 2019, social media guidelines in 2022, and updated rules for managing online services. Together, these measures have drawn concern from global tech stakeholders.

    US technology companies have been vocal about the potential impact of Vietnam’s evolving regulatory framework. In response to a draft version of the data law released earlier this year, the Computer & Communications Industry Association (CCIA) expressed reservations. Jonathan McHale, Vice President of Digital Trade at the CCIA, underscored Vietnam’s potential as a significant digital market in the Asia-Pacific region.

    “Vietnam holds great promise as a growing market for digital services in the Asia-Pacific region, and its extensive cross-border service commitments, embedded in binding trade rules, is key to that growth,” McHale stated. However, he cautioned that restrictive data policies could harm both international businesses and Vietnam’s economy, which has benefited from foreign investment and participation.

    Source: DW