US Tech Firms Warn Vietnam on Data Law

U.S. tech companies have expressed concerns to the Vietnamese government regarding a draft law aimed at tightening data protection and limiting overseas data transfers. This legislation, which is currently under discussion in parliament, could impede the growth of social media platforms and data center operators in Vietnam, a significant market for online services with a population of 100 million. Jason Oxman, chair of the Information Technology Industry Council, indicated that the law would make it difficult for these companies to serve their customers effectively. The law aims to enhance government access to information and is scheduled for potential passage on November 30, 2024. While existing regulations on data transfers are rarely enforced, the new law's impact on foreign investment remains uncertain, especially with Google's interest in establishing a large data center in the country. Analysts believe that Vietnam could emerge as a key player in the data center industry as restrictions on foreign ownership are set to end next year.