any tech companies have already warned Vietnam’s government about the rules and future procedures that might harm and limit companies' and businesses’
social media and data centers from conducting their activity in Vietnam.
Vietnam has a population of more than 100 million people and it is one of the biggest markets for Online platforms such as Facebook. The country is also looking forward to expanding its data center industry with the help of investors from abroad.
Jason Oxman, chief executive officer of the Information Technology Industry Council, also known as the ITI, reported that the alleged law “will make it challenging for tech companies, social media platforms and data center operators to reach the customers that rely on them daily,”. ITI is also the company that represents Meta, Google, and other data center operators such as Equinix, as Reuters said.
Even more so, one of the reasons the draft law is being crafted is Vietnamese authority's easier access to information, also accentuated by the Ministry of Public Security. In the case where the law is passed as eligible, after its month-long discussion session, the law can be passed by November, 30.
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Even more so, the regulatory measurements that are already available, come with limitations for their cross-border data transfers, yet those limitations are rarely applied. It is, however, still unclear how those changes would affect Vietnam.
In an interview for Reuters, Oxman also told them “That will hinder foreign business operations,”.
Tech companies along with other firms favor cross-border data flows in order to lower their costs and provide better services. Yet, jurisdictions such as the ones encountered in the European Union and China limit transfers in order to have better protection capabilities over sensitive data and information.
The discussed law will oblige companies to share data with Vietnam’s ruling Communist Party and come up with cases in order to “fulfilling a specific task in the public interest.".
Oxman also reported that the US tech industry has already raised concerns over “the undue expansion of government access to data." The new law could generate multiple challenges for most private companies.
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