National Assembly Standing Committee Reviews Draft Data Security Law

The National Assembly Standing Committee of Vietnam is reviewing a draft Law on Data Security, designed to address the growing risks associated with the digital economy. The proposed legislation adopts a lifecycle approach to data management, aiming to mitigate security risks across various sectors including the digital economy, digital infrastructure, investment, technology transfer, artificial intelligence (AI), emerging technologies, supply chains, and cross-border data flows. Under Vietnam's one-party system, the government prioritizes economic growth, with a particular focus on developing the digital economy. Concurrently, cybersecurity and data protection are deemed crucial for maintaining national security and social stability. The review of this draft law signifies the government's effort to balance economic development with security imperatives. The draft law is expected to include provisions for security measures at each stage of the data lifecycle, from creation to storage, utilization, sharing, and disposal. Ensuring data security in the context of advanced technologies like AI and blockchain is a pressing concern as their adoption accelerates. Moreover, in an increasingly globalized economy, managing cross-border data flows is vital for both stabilizing the international business environment and protecting domestic information. In its relationship with China, Vietnam has pursued a dual approach, deepening economic ties while maintaining caution regarding security concerns. The data security law is anticipated to strengthen the country's digital infrastructure and enhance credibility for attracting foreign investment. However, legislative processes within a one-party system often draw international scrutiny regarding transparency and citizen privacy. Separately, Vietnam's Ministry of Public Security is enhancing cooperation with law enforcement agencies in countries such as the Philippines, Cambodia, and South Africa to combat international crime and improve information sharing. This aligns with the broader efforts to bolster national security under the framework of the proposed data security law.