Washington — The Computer & Communications Industry Association signed two letters to the Vietnamese government raising concerns about a developing data law, provisions of which are modeled on a similar law in China, that would hinder the ability of U.S. and foreign companies to operate in the country. The letter, signed by 13 other trade associations, raises concerns about Vietnam’s Draft Data Law’s restrictions on cross-border flows for a broad set of ambiguously defined data; obligations for data subject consent for combining, adjusting, or updating data; granting of data expropriation authorities to government entities; and other disproportionate obligations for service providers.
CCIA also published a memo detailing these potential harms to U.S. and foreign companies’ ability to transfer data out of Vietnam as well as other threats to foreign investment in the country. The memo analyzes the trade commitments that could be implicated if Vietnam proceeds with the draft law.
The following quote can be attributed to Jonathan McHale, CCIA Vice President of Digital Trade:
“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.”
