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On November 30, during its 8th session, Vietnam’s 15th National Assembly approved the much-anticipated Data Law, setting a significant milestone in the nation’s digital transformation journey. Passed through a streamlined single-session procedure, this law underscores Vietnam’s commitment to leveraging technology for comprehensive digital development. It provides a legal framework to establish a robust digital infrastructure, ensuring advancements across economic, social, defense, and state management sectors.
Effective July 1, 2025, the Data Law comprises six chapters and 46 articles, covering the essential aspects of digital data creation, development, management, and usage. Below are the law’s key provisions and implications.
Key Features of the Data Law
Establishment of the National General Database
The cornerstone of the Data Law is the creation of a National General Database, designed to serve multiple purposes:
- Supporting national defense, security, and crime prevention.
- Facilitating data access for public and private entities to support socio-economic planning, statistics, and policy-making.
The database integrates:
- Information from administrative procedures and public services.
- Data synchronized from other databases.
- Data is provided by individuals and organizations under legal provisions.
This system streamlines administrative procedures, reduces redundancy, and enhances government efficiency by centralizing data for shared use across ministries, branches, and localities.
Data Transfer and Processing
The Data Law introduces specific guidelines for cross-border data transfer and processing, enabling:
- Vietnamese organizations store and process foreign data locally.
- The transfer of data stored in Vietnam to foreign entities, ensuring compliance with national security, and public interest regulations, and protecting the rights and legitimate interests of data subjects and data owners.
This provision is significant for foreign investors and domestic organizations, as it ensures the protection of legitimate rights while balancing national interests. Detailed regulations on these activities will be issued by the Government.
Data Sharing
Organizations and individuals are encouraged to provide their data to state agencies, fostering collaboration for public benefit. Under specific circumstances, data sharing becomes mandatory, such as during:
- National emergencies.
- Threats to national defense or security.
- Disasters or terrorism prevention.
State agencies are tasked with ensuring data confidentiality, security, and compliance with legal provisions when accessing such data.
National Data Center
The government is expediting the construction of a National Data Center, as outlined in Resolution No. 175/NQ-CP (October 30, 2023). This facility, expected to be operational by the fourth quarter of 2025, will:
- Integrate, synchronize, and store data from state agencies.
- Manage and coordinate the National General Database to support government agencies and socio-political organizations.
The National Data Center will also adhere to technical and communication infrastructure standards, serving as a critical foundation for Vietnam’s digital economy and society.
Simplifying Administrative Procedures
By consolidating data in the National General Database, the law aims to:
- Reduce bureaucratic redundancies and streamline administrative workflows.
- Provide real-time data for governmental decision-making and public service delivery.
- Enhance policy-making with reliable data analytics, supporting Vietnam’s socio-economic development.
Implications for Vietnam’s Digital Future
The Data Law is a transformative step toward realizing Vietnam’s vision of a digital government, economy, and society. Its far-reaching provisions position the country as a leader in digital governance in the region, with several implications:
- For Businesses: The law provides a clear framework for data usage and transfer, encouraging both domestic and foreign investment. Organizations must align their data practices with new regulations to maintain compliance.
- For Citizens: Enhanced data protection and streamlined public services promise improved convenience and trust in digital systems.
- For the Government: Centralized data management will boost efficiency, reduce administrative overhead, and enhance decision-making capabilities.
The Data Law marks a major step forward in Vietnam’s digital transformation journey. With the establishment of the National General Database and the National Data Center, the country is poised to harness the power of data to drive innovation, improve governance, and strengthen national security.
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