How Vietnam's new Data Law transforms cyber security and economy

How Vietnam's new Data Law transforms cyber security and economy

Vietnam's new Data Law is a major step in strengthening cyber security and data protection. It addresses key challenges while promoting digital economic growth and enhancing international collaboration.

As cyber threats escalate globally, Vietnam’s new Data Law is expected to strengthen security measures and drive innovation, positioning the nation as a regional leader in cyber security.

Dr James Kang, Senior Lecturer in Computer Science at RMIT University Vietnam, offers insights into the law’s potential to build a robust cyber security framework and elevate Vietnam’s position on the global stage.

What lessons can Vietnam learn from global cyber incidents?

Global cyber incidents such as North Korea’s cryptocurrency heist underscore the severity of cross-border threats and the need for international cooperation. In one notable case, Swiss authorities worked collaboratively with South Korean authorities to recover $260,000 in stolen assets, returning them to South Korea.

Dr James Kang Dr James Kang sees Vietnam’s Data Law as a key step in securing its digital future.

Another recent example is Operation Destabilise led by the UK’s National Crime Agency, which dismantled Russian money laundering networks linked to cybercrime. Coordinated with global partners like the FBI, it resulted in 84 arrests and the seizure of more than GBP£20 million, highlighting the importance of international collaboration in fighting cyber threats.

According to Dr Kang, such global operations offer critical lessons for Vietnam, which has faced significant cryptocurrency hacks causing billions of dollars in losses.

“Incidents like North Korea’s cryptocurrency theft and operations like Destabilise highlight that international collaboration is essential to combating cyber threats effectively,” he said.

Vietnam should adopt stringent management measures such as mandatory registration and regular audits of cryptocurrency exchanges. Advanced technological solutions, including multi-factor authentication (MFA), one-time passwords (OTP), and biometric verification—already prevalent in banking sector—should also be implemented more widely.

“Adopting advanced security measures is a crucial step in protecting users.”.

Moreover, raising public awareness through targeted education campaigns is vital to reduce fraud risks and enhance individual cyber security.

How does the new Data Law enhance Vietnam’s cyber security infrastructure and global standing?

Vietnam’s new Data Law introduces substantial changes to how information is managed and safeguarded. A key provision is the establishment of a National General Database, aimed at enhancing security and ensuring data integrity.

man in hoodie sitting in front of computer Global lessons in combating cybercrime emphasise the importance of collaboration and advanced measures as Vietnam strengthens its cyber security infrastructure. (Photo: Who is Danny - stock.adobe.com)

The law enforces strict regulations on cross-border data transfers, requiring data processed outside Vietnam to comply with domestic security standards. Dr Kang believes this reduces the risk of international data breaches and builds trust with global enterprises.

“Establishing a National Data Centre not only protects information but also improves administrative efficiency, creates a foundation for sustainable development, ensures data integrity, and facilitates efficient data management across various sectors,” he said.

Additionally, the law promotes international collaboration through the National Data Exchange Platform, enabling secure information sharing among organisations and global partners. This positions Vietnam as an active participant in global cyber security initiatives, strengthening its influence and partnerships.

What are the economic and societal benefits of implementing the Data Law?

The new Data Law is believed to enhance cybersecurity and provide significant momentum for Vietnam’s digital economy. Economically, the law fosters trust in online activities, encouraging innovation and attracting foreign investment. Businesses that comply with the law can minimise data breach risks, reduce costs, and build stronger reputations with customers.

“Businesses that adhere to the law will mitigate risks and gain customer trust, paving the way for sustainable growth,” Dr Kang said.

Woman holding a smartphone and bank card Vietnam’s new Data Law not only protects data but also drives digital economic growth and fosters public trust in online systems. (Photo: tippapatt - stock.adobe.com)

On a societal level, the law protects individual privacy and rights, fostering confidence in digital participation. This inclusivity bridges generational gaps and ensures equal access to technology, contributing to a more cohesive digital society.

However, implementing the law poses challenges. Small and medium-sized enterprises may struggle to meet compliance requirements, such as appointing data protection officers and deploying advanced security systems. Additionally, stringent data regulations could hinder innovation in high-tech sectors like artificial intelligence and fintech.

“Implementation must be carefully managed to achieve data protection goals without impeding economic progress,” Dr Kang said.

Vietnam’s new Data Law marks a pivotal step in creating a secure and efficient digital infrastructure. When adopting advanced security measures, fostering international cooperation, and enabling innovation, Vietnam positions itself as a leader in cyber security and the digital economy.

“The new Data Law not only protects privacy but also opens up opportunities for Vietnam to become a global hub for cyber security collaboration, contributing to sustainable development and international integration.”

Story: Dr James Kang, Senior Lecturer, Computer Science, School of Science, Engineering & Technology - RMIT Vietnam

Masthead image: Hanoi Photography - stock.adobe.com | Thumbnail image: elnur – stock.adobe.com

17 December 2024
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