VIETNAM’S DATA LAW: PAVING THE WAY FOR A DIGITAL ECONOMY AND STREAMLINED GOVERNANCE

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＜VIETNAM’S DATA LAW: PAVING THE WAY FOR A DIGITAL ECONOMY AND STREAMLINED GOVERNANCE＞

*The Japanese and English versions cover the same topic, but are explained from different perspectives.

13^th March, 2025
One Asia Lawyers Vietnam Office

On November 30, 2024, Vietnam’s National Assembly passed the Data Law (Law No. 60/2024/QH15) (“Data Law”), which is set to take effect on July 1, 2025.

Overall, the Data Law focuses on data accessed, shared, exploited, and used collectively by State agencies within the Government sector, as well as relevant data products and services. It also addresses how individuals and entities exploit public information (Open Data).

In this insight, we would like to introduce the highlighted regulations of the Data Law which may be informative to the private investors and enterprises:

1. Comprehensive National Database is expected to help reduce the processing time for administrative procedures of authorities

Comprehensive National Database is a database compiled from national databases, specialized databases, and other databases. The databases stored in the national integrated database are shared to support joint exploitation for ministries, sectors, and localities.

The Comprehensive National Database is built and centrally managed by the government at the National Data Center. The primary roles of the National Data Center are (i) Integrating, synchronizing, storing, analyzing, and exploiting data from state agencies in accordance with legal regulations and (ii) being in charge of the technical infrastructure, information technology infrastructure, and data platform for nation agencies. The Government will issue detailed regulations on the National Data Center.

The Comprehensive National Database will integrate information from the outcomes of administrative procedures and public services, data shared and synchronized from other databases, and data digitized and provided by individuals, organizations, and other sources as prescribed. This database will be shared to facilitate joint utilization by ministries, sectors, and localities, helping to reduce the processing time for various administrative procedures, particularly those requiring coordination among different agencies, such as obtaining a construction permit. By building and developing data foundations like the National Data Center and the Comprehensive National Database, the government aims to transform digital management, streamline administrative procedures by synchronizing, updating, and expanding data, and enhance the overall efficiency of public administration activities

2. The Data Law has outlined a legal framework for enterprises working in the data business.

The Data Law has regulated some relevant data products and services as well as their condition to conduct such services including: (i) Electronic verification services (for national databases); (ii) Data intermediary products and services; (iii) Data analysis and aggregation products and services; (iv) Data Platform (“Data Services Sectors”)

Electronic verification services are services that authenticate data within national databases, specialized databases, and electronic identification and authentication systems[1].

Data intermediary products and services are products and services designed to establish commercial relationships between data subjects, data owners, and users of the products and services. This is achieved through agreements aimed at exchanging, sharing, and accessing data, as well as exercising the rights of data subjects, data owners, and data users.[2]

Data analysis and aggregation products and services are the results of the process of analyzing and aggregating data into valuable insights at various levels, according to the requirements of the product user. Data analysis and aggregation services involve the analysis and aggregation of data as requested by the service user[3].

A data platform is a foundation that provides data-related resources to support research, startup development, and innovation; offers data-related products and services to promote socio-economic development; and serves as an environment for trading and exchanging data and related products and services[4]

Private entities may join the Data Services Sectors above, except for Electronic verification services and Data Platform sectors, which must be performed by Public service units and state-owned enterprises. Investors in the Data Services Sector are entitled to the same benefits as businesses operating in high-tech, innovative, creative startups and digital technology industries.

3. Open Data will assist foreign investors in assessing the potential market in Vietnam.

Open data is data that can be accessed, shared, exploited, and used by any agency, organization, or individual with a need. It also provides new opportunities for governments to collaborate with citizens and evaluate public services by allowing them to access relevant data.

Additionally, the Government will define the list of Open Data and its usage purposes, and the regulation on Open Data is likely to substantially impact business information service providers in Vietnam.

Whether businesses and entrepreneurs can use mass open data for its potential markets in the information business provision services and relevant services in Vietnam is in question.

In conclusion, the Data Law and the development of the Comprehensive National Database lay the foundation for improved data management, streamlined administrative procedures, and enhanced collaboration between the government, businesses, and citizens. By promoting open data and innovative data services, the law provides new opportunities for foreign investors and supports the growth of Vietnam’s digital economy. However, the real effectiveness of applying the Data Law and its guiding documents remains to be seen once they come into effect.

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[1] Article 39.2 Data Law
[2] Article 40.1 Data Law
[3] Article 41.1 Data Law
[4] Article 42.1 Data Law