U.S. enterprise teams warned on Friday a brand new regulation in Vietnam that may make know-how corporations retailer information domestically and arrange an area workplace was creating uncertainty and will have a “appreciable impression” 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 corporations 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 obligatory,” 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 know-how corporations in addition to telecommunication operators and information storage suppliers.
As soon as the foundations are carried out, corporations must retailer private information within the nation for not less than two years and arrange native information storage and a consultant workplace inside a yr.
Vietnam is run by the Communist Social gathering, 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 pointers on social media behaviour launched in June final yr.
Vietnam’s international ministry didn’t instantly reply to a request for remark.
Two tech corporations contacted by Reuters, Alphabet Inc’s Google and Meta, additionally didn’t instantly reply.
-Reuters
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