US Tech Firms Warn Vietnam’s Planned Law to Hamper Data Centres, Social Media

U.S. technology companies have raised concerns over Vietnam’s proposed data protection law, warning that it could impede the growth of social media platforms and data center operations within the country. The draft legislation aims to tighten data protection measures and restrict data transfers abroad, potentially affecting major tech firms like Meta and Google. Reuters

Jason Oxman, CEO of the Information Technology Industry Council (ITI), which represents leading tech companies, stated that the proposed law “will make it challenging for tech companies, social media platforms, and data center operators to reach the customers that rely on them daily.” Reuters

Vietnam’s parliament is currently reviewing the draft law, with a potential vote scheduled for November 30, 2024. The legislation seeks to enhance government access to data and may require companies to store certain types of data within Vietnam’s borders. Reuters

Existing regulations in Vietnam already impose some limitations on cross-border data transfers, though enforcement has been inconsistent. The new law could introduce stricter controls, raising concerns about its impact on foreign investment and the operations of international tech firms in the region. Reuters

The outcome of this legislative process will have significant implications for the technology sector in Vietnam, influencing how companies manage data and conduct business in the country.