AIC Submits Comments on the Vietnam Draft Decree Guiding the Implementation of Law on Cybersecurity (13 December 2018)

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AIC has submitted comments on the Draft Decree Guiding the Implementation of Law on Cybersecurity (“LOCS”) to the Ministry of Public Security (“MOPS”). While, AIC commends MOPS and the Government of Vietnam for their efforts on cybersecurity measures, to develop a legal framework for cyber and information security, the provisions under the draft decree have led to industry concerns, particularly on the data localization requirements. Such requirements will stifle investment in Vietnam’s digital economy and prove harmful to Vietnam’s long-term economic growth. This will not only hurt international players but will also impact Vietnamese small businesses if they are faced with similar data localization measures as in other countries as they seek to expand. The requirement on the establishment of branches or representative offices in Vietnam ignores the benefits of global business models as legitimate cyber security concerns can be addressed without the imposition of this localization requirement. This requirement will also create undue burden for foreign businesses which are located in Vietnam.