Understanding the New Vietnam Cybersecurity Law: Implications for the Business Sector
Vietnam recently passed a new cybersecurity law that aims to protect national security by regulating online activities. While the law has been praised for enhancing cybersecurity, it has also raised concerns among the business community regarding its implications.
What does the new law entail?
The new law requires internet service providers to store user data for 90 days and hand over information to authorities upon request. It also requires foreign companies to set up servers in Vietnam, making them subject to local laws and regulations. Moreover, the law prohibits the spread of “propaganda against the state.”
Implications for the Business Sector
Foreign companies operating in Vietnam must comply with the new law, which could increase compliance costs and affect business operations. Companies must now ensure that their data storage and transfer policies comply with Vietnamese regulations, which could be challenging for companies that operate globally.
The law also sets out strict cybersecurity requirements, including data encryption, security assessments and incident reporting. Failure to comply with these requirements could result in fines, suspension of business activities or even revocation of business licenses.
Case Studies
In October 2020, Facebook announced that it would be complying with the new law by restricting content deemed to violate Vietnamese law. The move was met with criticism from human rights groups, who argued that the law was an attempt to suppress free speech.
In another case, ride-hailing company Grab complied with the new law by setting up servers in Vietnam. However, the move reportedly caused disruptions to its operations and resulted in some job losses.
Conclusion
While the new cybersecurity law aims to enhance national security, it has also raised concerns among the business community regarding its impact on operations and costs. Companies operating in Vietnam must now comply with new regulations, which could be challenging and costly. As such, businesses operating in Vietnam must keep up to date with the latest developments and regulatory requirements to ensure they remain compliant and can continue to operate effectively.
