Vietnam's New Data Law: A Threat to Tech Growth?

Vietnam is considering a draft law to tighten data protection and limit data transfers abroad, causing concern among major tech firms. The law could hinder the growth of social media platforms and data centres, impacting foreign investment and increasing governmental access to personal data.

In a bid to bolster data protection, Vietnam's government is considering a draft law that could reshape the digital landscape in one of Asia's burgeoning technology markets. This proposed legislation aims to restrict data transfers abroad, a move raising alarms among U.S. tech giants investing in the country.

Vietnam, home to nearly 100 million people, is a significant market for social media platforms like Facebook and has ambitious plans to expand its data centre industry. However, the draft law could complicate foreign investment. Industry leaders worry the law might stifle growth and restrict tech firms' day-to-day operations.

The law, which demands governmental access to certain data sets, is set for a parliamentary vote by the end of November. Concerns are mounting over potential compliance challenges for private companies and the perceived 'undue expansion' of government access to data. The situation remains fluid as discussions with authorities continue.

(With inputs from agencies.)