Vietnam Takes a Step Towards Strengthening Data Protection and Privacy in Finance

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The Vietnamese government has unveiled a new draft law aimed at establishing a comprehensive legal framework for data activities within the country. The proposed legislation, which is now open to public consultation, seeks to regulate various aspects of data handling and governance.

Key Provisions

• Introduces regulations for conducting business with data
• Establishes enhanced definitions and regulations for various data processing activities, including:
  • Data sharing
  • Analysis
  • Verification
  • Authentication
  • Disclosure
  • Access
  • Retrieval
  • Encryption
  • Decryption
  • Copying
  • Transmission
  • Transfer
  • Withdrawal
  • Deletion
  • Destruction
• Imposes stricter regulations on cross-border data transfers, particularly for:
  • Core data: information that has a high coverage across sectors, groups, and regions and can directly affect political security if used or shared illegally
  • Important data: information in sectors, groups, or areas that can directly endanger national security, economic activities, social stability, and public health and safety if leaked, falsified, or destroyed

Access to Data

• The draft law seeks to clarify the circumstances under which government agencies can access data held by organizations and individuals
• Such access will be limited to “special cases,” such as:
  • Public emergencies
  • When data is crucial for fulfilling specific public tasks

Experts’ Take

The draft law marks a significant milestone in establishing a comprehensive legal framework for data activities, striking a balance between fostering a thriving data-driven economy and ensuring robust data protection and security.

“Vietnam’s Draft Data Law is a major step forward in regulating the use of personal data,” said [Name], a legal expert at KPMG. “As businesses operating in Vietnam’s finance sector navigate this evolving landscape, it is essential to have a deep understanding of Vietnamese law and implement measures to ensure data security and privacy.”

What This Means for Businesses

• The public consultation phase continues
• Businesses operating in Vietnam’s finance sector are advised to stay informed about the draft law’s implications and take proactive steps to ensure compliance
• KPMG offers invaluable guidance on developing comprehensive compliance strategies and implementing measures to ensure data security and privacy