The Vietnamese authorities have recently introduced two draft laws, the draft Data Law and the draft Law on Digital Technology Industry (DTI Law), for public feedback. These proposed laws aim to address various issues in the fields of data and digital technology, potentially impacting businesses across different industries.
The draft Data Law, released by the Ministry of Public Security (MPS) on 1 July 2024, defines data as the digital representation of behaviors, objects, events, and information. It lays the groundwork for the establishment, operation, and utilization of the National Synthesis Database at the National Data Center. This database will contain data from various sources, including other national and specialized databases, and access will be granted to stakeholders in the public and private sectors under specific conditions.
Additionally, the draft Data Law outlines requirements for specific forms of data processing, applicable to both State entities and private enterprises. It defines various data processing activities and imposes specific obligations on the relevant actors based on the nature of the operation. The draft law also proposes including data intermediary services, data analysis and synthesis services, and data trading platform services in the List of Conditional Business Investment Industries and Professions under the Investment Law 2020.
On the other hand, the draft DTI Law, unveiled by the Ministry of Information and Communications (MIC) on 2 July 2024, introduces policy incentives to advance the digital technology industry. Eligible beneficiaries of these incentives include manufacturers of digital technology products, credit institutions involved in key digital technology loans, investors in digital technology parks, semiconductor businesses, innovative start-ups, and vendors of eco-friendly digital technology products and services.
The draft DTI Law also introduces new concepts in the digital technology sector, such as digital technology products, AI, digital data, and digital assets. It aims to facilitate a more secure flow of digital data, promote the growth of the digital data market, regulate cross-border data utilization, and focus on AI as a significant driver of the fourth industrial revolution. The draft law also introduces a regulatory sandbox framework for testing innovative digital technologies in a controlled environment.
The implications of these draft laws on businesses will vary depending on their activities. However, there is a noticeable trend towards imposing restrictions on data flow and emerging technologies, balanced by incentivizing measures. The development of the draft DTI Law and Data Law signifies Vietnam’s commitment to adapting to the digital era, fostering innovation, and protecting data rights.
Overall, these legislative efforts mark significant milestones in Vietnam’s legal landscape, reflecting the country’s readiness to embrace the digital age. Businesses operating in Vietnam should stay informed about these developments and consider how they may impact their operations. If needed, legal assistance can be sought to navigate the implications of these draft laws on business activities in Vietnam.