Tech companies based in the United States (US) have raised concerns that a proposed new law in Vietnam aimed at tightening data protection and limiting data transfers abroad would hinder social media platforms, according to a report by Reuters.
The draft law would impede data centre operators from expanding their businesses in the country, tech firms complain. Vietnam is one of the world’s largest markets for Facebook.
Jason Oxman, chairperson of the Information Technology Industry Council (ITI), which also represents Meta, says that the planned law “will make it challenging for tech companies, social media platforms and data centre operators to reach the customers that rely on them daily”.
According to Vietnamese and foreign officials, the draft law is under discussion in the parliament, and is formulated to facilitate authorities’ access to information. The ministry of public security stressed the need for it, according to reports.
Vietnam’s ministry of public security and the information ministry have yet not released any official statement regarding the development so far.
The new regulations are expected to come into effect on November 30, 2024, if they are found “eligible” by the parliament.
