A coalition of U.S. technology companies has expressed concerns to Vietnams government, cautioning that a proposed data law could hinder social media and data center operators from expanding in the country, according to a report by Reuters.
Owned by Meta Platforms (META, Financials), Vietnam, a major market for platforms like Facebook, wants to draw international capital to support its data center sector in the next years. The proposed rule, however, is meant to restrict data transfers overseas and increase government access to information, possibly complicating operations for overseas technology companies.
Though these words are still vague, the lawnow under parliamentary reviewwould need businesses to get prior permission to export “core data” and “important data” abroad. Chair of the Information Technology Industry Council Jason Oxman, representing companies including Meta, Alphabet’s Google (GOOGL, Financials), and Equinix (EQIX, Financials), said the measure “would make it difficult for tech companies, social media platforms, and data center operators to reach the users who rely on their services daily.”
Though enforcement has been erratic, Vietnam’s current regulations restrict cross-border data flows in particular circumstances. The proposed bill would increase these restrictions, mandating businesses to provide data to government and state entities in a spectrum of broadly defined scenarios, such as completing duties judged in the public interest.
Though the timetable may alter, Vietnamese legislators are supposed to vote on the measure by Nov. 30, Reuters said. Should it be approved, the bill would bring Vietnam into step with nations such as China and the European Union, which limit cross-border data flows to improve data security and privacy.
Citing the dangers of “undue expansion” of control, the U.S. IT industry has strongly objected to the law’s possibility for more government data access. With reports in August showing Google is considering building a data center in Vietnaman investment that would be the first by a significant U.S. tech business in the nation Vietnam is now assessing proposals from big American tech players.
This article first appeared on GuruFocus.