Vietnam Data Protection Law: Processing by Local Establishment

The factor of Processing by Local Establishment is used in determining the law's applicability by ensuring that entities established in Vietnam, as well as foreign entities operating within Vietnam, are subject to the local data protection laws governing their data processing activities.

Text of Relevant Provisions

PDPD Art.1(2)(a):

"2. This Decree applies to: a) Vietnamese agencies, organizations and individuals;"

PDPD Art.1(2)(b):

"2. This Decree applies to: b) Foreign authorities, entities and individuals in Vietnam;"

Analysis of Provisions

The Personal Data Protection Decree (PDPD) of Vietnam specifies that the law applies to both Vietnamese entities and foreign entities operating within Vietnam. This broad scope of application ensures that all data processing activities conducted within the country's borders are subject to the same legal requirements, regardless of the origin of the entity performing the processing.

The provision in Art.1(2)(a) covers "Vietnamese agencies, organizations and individuals", which encompasses all local entities, from government bodies to private companies and individual citizens. This comprehensive approach ensures that no domestic entity is exempt from the law's requirements.

Art.1(2)(b) extends the law's reach to "Foreign authorities, entities and individuals in Vietnam". This provision is crucial as it subjects foreign entities operating within Vietnam to the same data protection standards as domestic entities, creating a level playing field and ensuring consistent protection of personal data across all sectors.

Implications

The inclusion of this factor has significant implications for businesses operating in Vietnam:

1. Local entities: All Vietnamese organizations, from small businesses to large corporations, must comply with the PDPD when processing personal data.
2. Foreign entities: Multinational companies with a presence in Vietnam, whether through a branch office, subsidiary, or other forms of establishment, are subject to the law.
3. Individual compliance: The law applies not only to organizations but also to individuals, which could include sole proprietors, freelancers, or any person processing personal data within Vietnam.
4. Equal treatment: Both domestic and foreign entities are subject to the same legal requirements, ensuring fair competition and consistent data protection standards across the market.
5. Territorial scope: The law's application to foreign entities "in Vietnam" suggests that physical presence or operations within the country's territory is a key factor in determining applicability.
6. Compliance strategies: Foreign companies operating in Vietnam need to develop compliance strategies that align with both their global data protection policies and the specific requirements of the Vietnamese PDPD.
7. Cross-border considerations: Multinational companies must be aware that their data processing activities in Vietnam are subject to local law, even if they also comply with data protection regulations in their home countries.