The Computer & Communications Industry Association (CCIA) has expressed concerns regarding Vietnam's proposed data law. In a letter co-signed by 13 other trade associations, the CCIA highlights potential issues with the draft legislation that could impact U.S. and foreign companies operating in Vietnam. The draft law is reportedly influenced by similar regulations in China.

The associations' letter outlines several problematic aspects of the draft law, including restrictions on cross-border data flows for broadly defined categories of data, requirements for obtaining consent from data subjects when combining or updating data, and provisions granting government entities authority over data expropriation. These elements are seen as imposing disproportionate obligations on service providers.

In addition to the letter, the CCIA released a memo detailing how these proposed regulations could hinder foreign investment and affect companies' ability to transfer data out of Vietnam. The memo also examines potential conflicts with existing trade commitments if the draft law is enacted.

Jonathan McHale, Vice President of Digital Trade at CCIA, commented on the situation: “Vietnam holds great promise as a growing market for digital services in the Asia-Pacific region, and its extensive cross-border service commitments, embedded in binding trade rules, is key to that growth. The ability of service providers to transfer data to other markets provides companies in Vietnam with access to cutting-edge technology. Policies that obstruct these transfers, including those in the proposed Data Law, harm both foreign companies and the local economy that flourishes with outside participation. We urge a rethink of this approach to the Data Law in alignment with international trade commitments and norms.”