On November 30, 2024, the Vietnamese government approved the new Law on Data with a 94.15 percent majority. Effective July 1, 2025, this legislation will establish a robust legal framework for regulating data usage in Vietnam’s evolving digital landscape.
Latest development
Vietnam’s Law on Data will officially come into effect in the second half of 2025, marking a significant step toward bolstering data privacy measures and harmonizing regulations for a more cohesive framework. This initiative, coupled with the implementation of the Vietnam Personal Data Protection Decree (PDPD) in July 2023 and the draft Law on Personal Data Protection (PDPL), highlights the country’s commitment to addressing data protection challenges and fostering trust in its digital landscape.
The Law on Data consists of five chapters and 46 articles that govern various aspects of digital data. It covers the construction, development, protection, administration, processing, and use of digital data. The law also outlines the rights, obligations, and responsibilities of agencies, organizations, and individuals involved in digital data activities.
What to expect in the final version of the Vietnam Law on Data
The announcement indicates Vietnam’s efforts toward enhancing data protection. Before the publication of the official version of the new Data Law, the National Assembly’s Standing Committee has directed the government to make crucial adaptations to the initial draft, which is expected to be reflected in the official text.
The suggested amendments focus on regulations guiding:
- Data transfer overseas or to foreign organizations and individuals;
- National Database and the procedures of data collection, updating, and synchronization into the National Database;
- Building a national data center; and
- Developing data exchange platforms.
Proposed changes to the Vietnam Law on Data
After the Vietnamese National Assembly passed the law with an impressive approval rate of 94.15 percent, the Standing Committee proposed several amendments to the official text.
The Standing Committee will play a key role in implementing and continually evaluating the law, ensuring that it meets real-world needs and prevents waste of resources.
Cross-border data transfer
The committee has required amending the law to allow organizations and individuals to freely transfer data from abroad into Vietnam and enable foreign data processing within Vietnam while ensuring protection for the rights and legitimate interests of the entities involved.
With the sole focus on establishing general principles on cross-border data transfer, the law must be accompanied by detailed regulations from the government to ensure it can be applied effectively in practice.
National database
During the meeting, the National Assembly agreed on the importance of building a national database as a shared resource for agencies, organizations, and individuals to exploit and use. The construction and development of this initiative will create a foundation for the development of digital government, promoting the digital economy and forming a digital society.
This will help reduce many administrative procedures related to amending and supplementing information in various databases by synchronizing with the national database. It will support state management activities, assist in the direction and operation of the government, and aid in statistical work, policy-making, planning, and developing strategies for socio-economic development, security, national defense, foreign affairs, and the prevention and fight against crime.
Amending the articles on establishing the national database, the Standing Committee has directed the addition of a provision in Clause 4, Article 34, of the new law, stating: “The Prime Minister shall be responsible for deciding on the roadmap for building and developing national databases, specialized databases, and the strategy for collecting, updating, and synchronizing data into the National Database.”
National data center
The Standing Committee has directed a thorough review and consolidation of the contents of Chapter IV of the draft Law, including Articles 40, 41, 42, 43, 44, 45, 46, and 47, into Section 1 of Chapter III regulating the construction and development of the National Data Center with three articles. Accordingly, the amendments will primarily focus on the ground rules as follows:
- General and principled regulations on the construction and development of the National Data Center;
- Clarification of the location, functions, and roles of the national data center;
- Avoiding conflicts with relevant legal provisions; and
- Provisions on building contingency plans to deal with incidents that may arise.
A new National Data Center will also be established as a unit under the Ministry of Public Security. The Minister of Public Security is tasked with defining its operational framework and responding to potential data-related incidents.
Data exchange platform
Vietnam has decided to allow the establishment of data platforms to enhance the data market, fostering the development of data-related products and services that aid in digital transformation across various sectors. However, the Standing Committee has instructed that only fundamental principles for data exchanges should be outlined in the new law, delegating the Government to specify detailed regulations within its authority.
This initiative aims to gradually establish a data market, encourage the growth of data-related products and services, and facilitate digital transformation in various industries and sectors of the economy. Additionally, it seeks to improve communication methods between state agencies, organizations, individuals, and social relations within the digital environment.
Conclusion
The approval of Vietnam’s Law on Data marks a pivotal advancement in the country’s regulatory landscape, emphasizing its commitment to enhancing data privacy and protection. Set to take effect in the second half of 2025, this legislation establishes a comprehensive framework for managing digital data, addressing critical areas such as data transfer, national database development, and the rights of individuals and organizations involved in data activities.
The ongoing review of the draft Law on Personal Data Protection further underscores the government’s proactive approach to data governance. As Vietnam strides toward a more structured digital environment, these measures not only bolster public trust but also pave the way for a thriving digital economy, ensuring that all stakeholders can engage with data responsibly and securely.
(This article was originally published in December 2024. It was last updated on January 2, 2025.)
