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April 11, 2025

What’s New in the Latest Draft of Vietnam’s Personal Data Protection Law?

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Vietnam’s draft Personal Data Protection Law (PDPL) continues to evolve, with significant implications for businesses operating in the region. The latest draft, released to the public in March 2025, contains several noteworthy changes from the previous draft that businesses with operations in Vietnam should be aware of when developing their data protection strategies and compliance frameworks. The draft PDPL will be submitted to the vote of the National Assembly in May 2025 with a tentative entry into force on January 1, 2026.

Key Changes in the Latest Draft PDPL

1. Redefined Categories of Personal Data

The draft PDPL has made important revisions to personal data classifications:

  • Basic personal data: An individual’s image is no longer classified as basic personal data.
  • Sensitive personal data: Bank account information has been removed from this classification (and is now considered basic personal data), but two new categories have been added: (i) salary, allowances, and other income sources, and (ii) information on land users and information on land containing such information.

Organizations should review their data classification schemes and update protection measures accordingly, particularly for salary and compensation information.

2. Data Encryption Requirements

The draft PDPL explicitly states that encrypted data remains classified as personal data. Additionally, it mandates that sensitive personal data must be encrypted when stored, transmitted, received, or shared in cyberspace. Organizations and individuals can freely opt for one or more encryption solutions and encryption/decryption processes suitable for their personal data management and administration activities.

3. Biometric Data Processing

The latest draft PDPL adds new protection requirements for biometric data. Organizations processing biometric data (such as fingerprints) must:

  • Implement physical security measures for devices storing and transmitting biometric data.
  • Use strong encryption methods during transmission and storage.
  • Restrict access to biometric data.
  • Have early-detection monitoring systems to detect violations of biometric data protection regulations.
  • Comply with relevant legal and international standards.

4. Grace Period for Compliance

The draft PDPL maintains requirements for personal data protection organizations (PDPOs) and personal data protection experts (PDPEs) but now includes a one-year grace period for compliance with these specific obligations, giving businesses time to prepare.

Unchanged Requirements of Note

While several elements of the Vietnam’s draft PDPL have been updated, some key requirements remain unchanged from previous drafts and continue to demand attention from businesses planning their data compliance strategies.

1. Employee Monitoring

Employers must still:

  • Obtain explicit employee consent for monitoring activities.
  • Include personal data protection provisions in contracts.
  • Specify monitoring technologies and measures in contracts.

This may necessitate amendments to existing labor contracts or related documents.

2. Impact Assessment Filing Requirements

The Data Processing Impact Assessment (DPIA) and Transfer Impact Assessment (TIA) obligations remain, requiring:

  • Updates every six months when changes occur.
  • Immediate updates for organizational changes, PDPO/PDPE changes, or business service modifications.

While detailed requirements for these assessments will be specified in future government decrees, organizations should establish processes for regular assessment and filing.

Outlook

Though these requirements remain in draft form, organizations should develop strategies in preparation for the legislative changes. Early compliance planning not only reduces regulatory risk but can enhance customer trust and operational security.

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