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December 11, 2024

Vietnam Issues New Data Law

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On November 30, 2024, the National Assembly of Vietnam issued a new Law on Data (“Data Law”), the first of its kind in the country. Initiated by a legislative proposal in February 2024, the Data Law underwent an accelerated preparation process and was officially promulgated just nine months later. It is worth noting that the Data Law is not the same as the Personal Data Protection Law, which is still in draft form and is expected to be submitted to the National Assembly in November 2025. The scope of application of the Data Law is broader, including not only personal data but also other types of data.

The Data Law governs digital data, the National Data Center, the National General Database, digital data products and services, digital data management, and the rights, obligations, and responsibilities of agencies, organizations, and individuals related to digital data activities. Set to take effect on July 1, 2025, the Data Law is expected to have a significant impact on businesses involved in data-processing activities.

Below are some key takeaways from this pivotal legislation.

Cross-Border Data Transfer and Processing

The Data Law recognizes and protects the freedom of cross-border data transfer and processing, as well as the legitimate rights and interests of relevant agencies, organizations, and individuals. The government is assigned the responsibility to provide detailed regulations on cross-border data transfer and processing activities, including the transfer of offshore data into Vietnam.

National Data Center

Resolution No. 175/NQ-CP issued by the Vietnamese government in October 2023 set out ambitious goals for a new National Data Center, which will integrate and manage human-related data from the national database, databases of ministries and central and local authorities, and other databases. The National Data Center is expected to be a core platform to provide data-related services, support policy drafting, simplify administrative procedures, and lead the development and establishment of digital government.

The Data Law regulates the following key issues pertaining to the construction and development of the National Data Center:

  • Infrastructure of the National Data Center;
  • Responsibilities of the National Data Center, together with measures to protect and ensure data security, safety, and confidentiality of the National Data Center; and
  • Assurance of resources for the construction and development of the National Data Center.

The National Data Center will be directly managed by the Ministry of Public Security.

Data Exchange

Currently, there are no specific regulations governing the exchange of data, except for the Personal Data Protection Decree, which generally but strictly restricts the sale of personal data only to cases clearly permitted by law. The Data Law, for the first time, provides the basic principles for data exchange, and assigns the government to specify the regulations prescribed under the law according to specific roadmaps suitable for Vietnam’s realities in each stage. The Data Law is gradually establishing a data market, promoting the development of data-related products and services to encourage digital transformation in all sectors of the economy and society.

At the time of writing, the full text of the Data Law was not yet publicly available. We will publish a more detailed article with a comprehensive analysis of this significant new legislation once the full text is available.

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