US Technology Company Warns Vietnam Law Plans To Hamper Data Centers And Social Media

Jason Oxman, Head of Information Technology Industry Council (ITI) (photo: x @joxman).

JAKARTA-US technology companies warn that Vietnam's new draft law aimed at tightening data protection and limiting data transfer abroad could hinder the development of data centers and social media platforms in the country. This step is said to make it difficult for their business to reach customers and carry out operations efficiently.

Vietnam, a country of about 100 million people, is one of the main markets for companies such as Facebook and various other online platforms. The country is also trying to attract foreign investment to develop the data center industry in the coming years.

According to Jason Oxman, the Head of Information Technology Industry Council (ITI) representing large companies such as Meta, Google, and Equinix, this new rule could harm the technology ecosystem in Vietnam.

"The drafting of this law will make it difficult for technology companies, social media platforms, and data center operators to reach their customers every day," Oxman said. This bill, which is currently being discussed by parliament, was prepared to make it easier for authorities to access citizens' personal information, at the request of Vietnam's Ministry of Public Security.

The new provisions in this law require companies to obtain government approval before moving data categorized as core data' and important data' abroad. However, the term does not yet have a clear definition, which critics say will complicate foreign businesses in complying with applicable rules.

Adam Sitkoff, Executive Director of the American Chamber of Commerce in Hanoi, said that this legislation process needs to be considered more carefully. "We are currently discussing with Vietnamese authorities to re-evaluate this hasty legislative process so as not to have a bad impact on the private sector," said Sitkoff.