Vietnam’s data regulations: Striking a balance between national security and external pressures

AMID increasing restrictions in Europe and the United States, TikTok, the Chinese-owned video-sharing app, faced a new probe in Vietnam. In May 2023, the country’s Ministry of Information and Communications announced an investigation into TikTok’s compliance with its content management, data regulations and tax obligations. The comprehensive inspection reflects the country’s growing concerns about data regulations and national security in the digital age.

Vietnam’s digital economy has witnessed remarkable growth, contributing 14 per cent to the nation’s gross domestic product in 2022. The country also experienced a surge in online activities, with over 94.2 million smartphone users and 82.2 million mobile broadband subscribers in 2022, representing over 74 per cent of the population. As Vietnam’s digital economy continues to flourish, it faces the dual challenge of safeguarding national interests while adhering to international pressures and trade agreements.

Liberal data regulations for foreign firms 

Vietnam’s data governance framework is anchored in its 2018 Cybersecurity Law (CSL), Decree 53 of 2022, and the recently enacted Decree 13 on Personal Data Protection in 2023. The data localisation requirement appears to favour foreign firms.