Data Protection Law in Vietnam Under US Examination 

US tech company expressed its concerns from Vietnam data protection law aimed at decreasing data protection and restricting data transfers

Recently, a US tech company expressed its concerns from Vietnam data protection law aimed at decreasing data protection and restricting data transfers, which, however sounded like a threat to the US. 

Apparently, the tech war with China was not enough for the US to protect the country’s development and tech market. 

Vietnam is a key market for several major platforms, like Facebook, with a population of 100 million and is trying to boost its data center industry through increased foreign investment. 

Vietnam’s data protection policy  

Jason Oxman, chair of the Information Technology Industry Council (ITI), which represents companies such as Meta and Google, stated that the Vietnam data protection draft law “will make it challenging for tech companies, social media platforms, and data center operators to reach the customers that rely on them daily.”  

However, the Vietnam personal data protection law is currently under parliamentary discussion will facilitate government access to information and has been advocated for by the country’s Ministry of Public Security. 

Existing regulations have already been issued, but limitations on cross-border data transfers have failed to be consistently taken seriously. The consequences on how the new law, which is set for a vote on November 30, will influence foreign investment in Vietnam remain uncertain.  

It was revealed that Google sources leaked how the company was considering establishing a huge data center in South Vietnam prior to the introduction of Vietnam data protection law. 

One of the draft legislation’s key measures is the requirement for prior authorization before transferring “core data” and “important data” abroad, fueling industry leaders’ fears, with Oxman warning that such vague conditions could hold back foreign business operations in the region and demotivate investors. 

The data protection law’s in Vietnam restrictions mirror similar regulations seen in the European Union (EU) and China – data transfer limitations are justified by privacy and security concerns. 

The protection law would force companies to share data with Vietnam’s ruling Communist Party and state organizations under unclear conditions, further fueling US tech firms’ increased government access to sensitive data

According to executive director of the American Chamber of Commerce in Hanoi, Adam Sitkoff, the law could have significant challenges for private sector companies.  

Final Thoughts 

Following how the Vietnam personal data protection decree is going to be implemented, the tech industry in the country will be reshaped, in addition to the impact on potential foreign investments. Vietnam’s abilities will be tested in how well the country will attract international investors while imposing these strict data protection laws, and major effort would be a good option for stakeholders to find a common ground that addresses security matters.  


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