US tech firms warn Vietnam’s proposed new law to hamper social media, data centres

The draft law, being discussed in Vietnam’s parliament, aims to tighten information-protection rules and limit data transfers abroad

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Vietnam’s proposed new data law is expected to make it challenging for tech firms, social media platforms and data centre operators to reach the customers that rely on them daily. Photo: Shutterstock

Published: 4:56pm, 4 Nov 2024

US technology companies have warned Vietnam’s government that a draft law to tighten information-protection rules and limit data transfers abroad would hamper social media platforms and data centre operators from growing their businesses in the Southeast Asian country.

The draft law, being discussed in the country’s parliament, is also designed to ease authorities’ access to information and was urged by the Ministry of Public Security, Vietnamese and foreign officials said.

Vietnam, with a population of 100 million, is one of the world’s largest markets for Facebook and other online platforms, and is aiming to exponentially increase its data-centre industry with foreign investment in coming years.

But the proposed law “will make it challenging for tech companies, social media platforms and data centre operators to reach the customers that rely on them daily”, said Jason Oxman, who chairs the Information Technology Industry Council (ITI), a trade association representing Big Tech firms including Meta Platforms, Google and data-centre operator Equinix.

A bird’s eye-view of Hanoi, the capital and second-most populous city of Vietnam. Photo: Shutterstock

Both the public security ministry and the Ministry of Information and Communications did not respond to attempts to contact them via email and phone.

Vietnam’s parliament is discussing the proposed law in its current month-long session and is scheduled to pass it on November 30 “if eligible”, according to its programme, which is subject to changes.