U.S. business groups warn Vietnam data rules may threaten investment

HANOI, Sept 9 (Reuters) – U.S. enterprise teams warned on Friday a brand new regulation in Vietnam that can make expertise companies retailer knowledge domestically and arrange an area workplace was creating uncertainty and will have a “appreciable affect” on funding.

In a joint letter to Prime Minister Pham Minh Chinh, the U.S. Chamber of Commerce, the American Chamber of Commerce Hanoi and the Asia Web Coalition, stated the brand new regulation would make it unimaginable for firms to precisely assess the price of doing enterprise in Vietnam.

“The wording of sure articles/clauses…is ambiguous and creates uncertainty as to what compliance actions are needed,” in line with the letter.

The enterprise associations requested within the letter that the federal government present extra detailed steering on the interpretation of the regulation.

The brand new guidelines, introduced final month, are anticipated to take impact on Oct. 1 and apply to expertise firms in addition to telecommunication operators and knowledge storage suppliers. learn extra

As soon as the foundations are applied, firms must retailer private knowledge within the nation for not less than two years and arrange native knowledge storage and a consultant workplace inside a yr.

Vietnam is run by the Communist Occasion, which maintains tight media censorship and tolerates little dissent.

It has tightened web guidelines over the previous few years, culminating in a cybersecurity legislation that got here into impact in 2019 and nationwide tips on social media behaviour launched in June final yr.

Vietnam’s overseas ministry didn’t instantly reply to a request for remark.

Two tech companies contacted by Reuters, Alphabet Inc’s Google and Meta, additionally didn’t instantly reply.

Reporting by Phuong Nguyen
Modifying by Ed Davies

Our Requirements: The Thomson Reuters Belief Ideas.