You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

February 8, 2023

Vietnam’s Personal Data Protection Decree Takes Important Step Toward Issuance

Subscribe to Updates

Government Approves Legislative Dossier

On February 7, 2023, the Vietnamese government issued Resolution No. 13/NQ-CP (“Resolution 13”) to approve the latest version of the draft Personal Data Protection Decree (“Draft PDPD”)—a draft which has not yet been made public.

Similar to Resolution No. 27/NQ-CP issued in March 2022 approving the previous version of the Draft PDPD (“Resolution 27”), Resolution 13 stipulates the different cases where data subjects’ consent is exempted for processing personal data. Most of these lawful bases are similar to those under Resolution 27—except for the fourth case, which is brand new—with some changes for better clarity.

According to Article 1 of Resolution 13, personal data can be processed without consent in the following five cases:

(1) The processing is to protect the life and health of the data subject or others in an emergency situation. Data Controllers, Data Processors, Parties Controlling and Processing Personal Data, and Third Parties are responsible for proving this case;

Remarks: Vietnamese law, including the prior published version of the Draft PDPD, has never used the terms “data controller”, “data processor,” and “parties controlling and processing personal data.” The inclusion of these terms suggests that the latest version of the Draft PDPD has adopted the GDPR-like concepts of “data controller” and “data processor.” However, until the latest version of the Draft PDPD can be assessed, it is uncertain how these concepts are defined and whether they are fully in line with GDPR definitions.

(2) The disclosure of personal data is in accordance with the law;

(3) The processing of data is performed by competent state agencies in the event of a state of emergency related to national defense, national security, social order and safety, major disaster, or dangerous epidemic; when there is a threat to security and national defense but not to the extent that a state of emergency must be declared; or when the processing is to prevent and combat riots and terrorism, crime, and law violations in accordance with law;

Remarks: This expands the list of situations where the data subject’s consent is exempted compared to a similar criterion in Resolution 27, which simply mentioned “national defense and security requirements.”

(4) The processing is to fulfill the contractual obligations of the data subject with relevant agencies, organizations, and individuals as prescribed by law;

Remarks: Under current legislation, consent is exempted when personal data is used for signing, modifying, or performing a contract to use information, products, and services in the network environment between the data subject and an IT/e-commerce trader/service provider. This basis for consent exemption is stipulated under the Information Technology Law and Decree 52 on E-Commerce.

This new basis under Resolution 13 has been broadened to include the processing of personal data for performing any types of contracts involving the data subject as a party. These contracts may include employment contracts and contracts for purchase of goods/services outside the IT/e-commerce context.

The Draft PDPD seems to have adopted the lawful basis under Article 6.1(b) of GDPR: “processing is necessary for the performance of a contract to which the data subject is party or in order to take steps at the request of the data subject prior to entering into a contract.” Interestingly, the basis of processing for “legitimate interests of the controller or third party” under the GDPR does not appear in Resolution 13. As the Vietnamese legislator has always refused to adopt this basis into the Vietnamese data protection regime, it is unlikely to be covered by the Draft PDPD.

The wording of this newly added criterion is rather broad and subjective. It is unclear what could be considered necessary to “fulfill the contractual obligations,” and whether this criterion could be interpreted broadly enough to cover “legitimate interests” of the employer/service provider when implementing contractual obligations with data subjects.

If there is no further guidance on this criterion, we believe that it would be open to the authority’s discretion in interpretation and the arguments of the parties on a case-by-case basis.

(5) The processing is to serve the activities of state agencies prescribed by sector-specific laws.

Remarks: Resolution 27 included the criterion “the processing is for competent state agencies’ investigation and handling of law violations,” which has been removed from Resolution 13. It could be argued, however, that this criterion under Resolution 13 is sufficiently broad to cover the same cases.

Review by the National Assembly

Following the issuance of Resolution 13, on February 8, 2023, the National Assembly’s Committee for Defense and Security held a plenary meeting to review and discuss the newly approved Draft PDPD. According to media reports recapping the discussion, most of the delegates attending the meeting believed that this version of the Draft PDPD had been prepared quite thoroughly, with due consideration of opinions contributed by other state agencies and the public during the consultancy phase. However, given the significance of the PDPD, which covers novel issues that have rarely been tested in practice, the Draft PDPD was still subject to extensive comments from the delegates in the meeting, and possible further review by the Committee for Defense and Security.

What’s Next for the Draft PDPD?

Resolution 13 approves the content of the government’s report on the Draft PDPD, the report on collecting and considering opinions of the Standing Committee of the National Assembly, and the content of the latest version of the Draft PDPD; and assigns the Minister of Public Security, on behalf of the government, to report on and consult with the Standing Committee on the Draft PDPD. This means the resolution works as direction and approval of principles for key issues so that the Ministry of Public Security can complete the Draft PDPD for the Standing Committee’s approval before its eventual promulgation.

According to Article 2 of Resolution 13, as the next step, the Minister of Public Security will have to consult the Standing Committee of the National Assembly on the new version of the Draft PDPD. No specific timeline for promulgation has been announced. Following the review session by the Committee for Defense and Security, the Ministry of Public Security will need to consider the opinions of the delegates in the session and update the Draft PDPD accordingly, before submitting it to the Standing Committee.

Related Professionals

Industries

Technology

Location

RELATED INSIGHTS​ 

October 8, 2024
Thailand’s Electronic Transactions Development Agency (ETDA) issued guidelines for managing advertisements on digital platform services (DPSs) earlier this year. These guidelines aim to prevent fraud, illegal product or service offerings, and inducements to commit illegal acts, and are likely to provide a basis for greater regulation of this issue in the future. Key obligations for DPS business operators under the guidelines are detailed below. Advertiser Screening and Data Collection Verification and collection: Business operators must establish processes for verifying and collecting advertiser data. This includes steps, methods, and required information for advertiser registration. Identity verification: Business operators should follow identity verification requirements for advertiser registration. This may include using identity verification results from other identity providers or conducting their own identity verification processes with a minimum identity assurance level (IAL) of IAL2. Data storage: Advertiser data must be stored in a machine-readable format. Business operators must maintain records for watchlists, blacklists, and whitelists. Prepublication Advertisement Review Review process: Business operators should review advertisements before publication. This review should consider factors such as prohibited or restricted advertisements, required permissions, and avoiding sensitive user data. Postpublication Monitoring Advertisement monitoring: Business operators must monitor published advertisements using automated systems, staff, or contracted personnel. Criteria for prioritizing reviews should be established. Reporting channels: Business operators must provide channels for users to report illegal or inappropriate advertisements. Reports must be promptly addressed, prioritizing cases involving intellectual property owners or multiple credible reports. Advertiser account monitoring: Business operators must monitor advertiser accounts. This includes considering factors such as the number of reports/flags received and compliance with service agreements and community standards. For more information on this initiative from the ETDA, or on any aspect related to Thailand’s regulations for DPSs, please contact Athistha (Nop) Chitranukroh at [email protected], Thammapas Chanpanich at [email protected], Pornpan Wichawut at [email protected],
Read More
October 2, 2024
The first draft of Vietnam’s new Personal Data Protection Law (“Draft PDPL”) was released for public consultation on September 24, 2024, and is open for comments until November 24, 2024. (See further details here.) It is expected that the draft will be presented to the National Assembly before the end of 2024 and will be submitted for adoption in May 2025, with a tentative entry into force on January 1, 2026. As the Draft PDPL incorporates most of the provisions of Decree No. 13/2023/ND-CP on Personal Data Protection (“PDPD”), which has been the primary legal instrument on personal data protection since it took effect on July 1, 2023, it is likely that it will supersede the PDPD when it takes effect. [Please contact our Vietnam data protection team to request a detailed comparison of the Draft PDPL to the PDPD.] Noting that there might be further changes to the draft once the public consultation period closes, the Draft PDPL proposes new specific requirements for a number of services. Some highlights of the current version include the following: Marketing services: Although marketing services are already regulated under the PDPD, the Draft PDPL now recognizes that the use of personal data for marketing must comply with anti-spam regulations. The current draft does not clarify whether organizations are exempted from the consent requirement for the purpose of the initial call or message under the anti-spam regime. Marketing service providers are not allowed to outsource the services to another organization to perform or support the implementation of marketing business, which may prevent the sharing of personal data. Behavioral advertising: Behavioral advertising (targeted personalized advertising based on a user’s activity or personal data) requires the consent of the data subject in a modifiable manner that allows the data subject to refuse to share data
Read More
September 24, 2024
On September 24, 2024, the government of Vietnam issued the first draft of a new Law on Personal Data Protection (“Draft PDPL”). As foreshadowed in our previous legal update, the Ministry of Public Security has been very active in developing this draft law. With this draft, they promise to continue their considerable efforts to establish a robust personal data protection culture in Vietnam, as the Draft PDPL indicates a tentative entry into force on January 1, 2026. With a tentative adoption by the National Assembly in May 2025, the Draft PDPL does not include any transition period, save for micro-enterprises, SMEs, and startups, which are only exempted from appointing a data protection department in their first two years of existence, while the timeline to comply with other obligations under the PDPL remains the same as for other enterprises. The Draft PDPL includes 68 articles, divided into seven chapters, making it more extensive than last year’s Decree No. 13/2023/ND-CP on Personal Data Protection (“PDPD”), and expressly addresses personal data protection in many fields, including marketing services, behavioral advertising, big-data processing, AI, cloud computing, labor monitoring and recruitment, financial and credit information, health and insurance, and others. It remains unclear how the PDPL will interact with the PDPD (whether it will replace its predecessor or coexist with it), although the Draft PDPL provides that it will prevail over any laws that have provisions on personal data protection that differ from the provisions of the PDPL. Among the important new developments of the Draft PDPL when compared to the PDPD, we note: Consent remains the main legal basis for processing, with limited exceptions (still not including “legitimate interest”). However, consent for cross-border transfer is further regulated under the Draft PDPL, including for intra-group sharing. Data processing impact assessment dossiers for controllers and
Read More
September 24, 2024
In recent years, Thailand has witnessed significant developments in its personal finance sector, particularly in alternative lending options. This article explores two key concepts in the Thai financial landscape: nano finance and personal loans. These alternative lending models, regulated by the Bank of Thailand (BOT), aim to provide more accessible financial services to individuals and small entrepreneurs who might have limited access to traditional funding sources. Nano Finance: Empowering Small Entrepreneurs The nano finance scheme under the BOT’s supervision is designed to provide funding to small entrepreneurs who might have limited access to traditional financial resources. One of the key features of this scheme is the ability of licensed nano finance providers to use alternative data in assessing loan applicants’ ability to repay (information-based lending). To implement this approach, nano finance providers must have an internal policy on credit approval that supports: Identifying scope and processes for utilizing alternative factors or technologies in determining debt repayment capacity, credit line limits for each loan applicant and total credit limits, and acceptable debt repayment targets; Having resources and personnel with sufficient knowledge, capability, experience, and expertise to operate efficiently and effectively, as well as clear checks and balances; Establishing guidelines for selecting and analyzing factors or financial models to evaluate or predict loan applicants’ ability and willingness to repay; Having an internal sandbox to test key success factors of the selected factors or models; and Having a process for monitoring and reviewing the application of the selected factors or models in assessing debt repayment capability. This approach allows nano finance providers to make more informed lending decisions based on a broader range of data, potentially increasing access to finance for small entrepreneurs who may not have traditional credit histories or collateral. Personal Loans The personal loan scheme under BOT supervision aims
Read More