Fines are rising. Risks are growing. But with the right mindset, so is opportunity. A new legal framework is changing the way businesses must handle personal data.
This article breaks down the key takeaways, risk points, and action steps every business leader should know about the Vietnam Personal Data Protection Law.
Whether you operate locally or work with customers across borders, this law affects how you collect, use, and share information.
By the end of this guide, you would see how aligning with the law is not just about avoiding penalties, it is about complance in Vietnam for building trust and competitive strength.
Why Vietnam Personal Data Protection Law Is A Big Change
New rules often feel complex. But this one is simple at its core: respect personal data, or face the consequences.
The Vietnam Personal Data Protection Law sets strict standards for how businesses must handle the personal data of individuals. It applies broadly, including to companies based outside the country that process local user data. The consequences for violations are serious. Businesses can face fines of up to five percent of their previous year’s total revenue. If the violation involves trading personal data, the fine may reach ten times the financial gain from that transaction.
This means data protection is no longer just a technical issue or an IT department’s concern. It is a leadership responsibility. If your organization interacts with individuals in Vietnam, whether by providing services, collecting emails, or storing customer records, then this law also applies to you.
The good news is that the law also provides a structure for businesses to follow. Those that take the time to understand and act on it will not only reduce their risk, they will earn the trust of their customers and partners.
What You Gain From This Brief of Vietnam Personal Data Protection Law
This article gives business leaders a brief view of what the Vietnam Personal Data Protection Law means in practice, and how to respond. You’ll gain:
- A clear understanding of the law’s purpose and structure
- Practical strategies for reducing risk and avoiding costly mistakes
- Examples that make the law real, even without technical details
- Guidance for preparing for internal readiness across teams
- Key answers to questions many business leaders are asking right now
Whether you are managing legal, operations, or marketing, the lessons here will help you turn compliance into capability. And throughout, you would see how the Vietnam Personal Data Protection Law can support, not slow your growth.
From Risk to Readiness For Vietnam Personal Data Protection Law
A Wake-Up Call for Digital Sovereignty
Vietnam’s digital economy has grown at high speed, millions of users online, apps and platforms expanding, and personal data collected at scale. But as the digital world expanded, so did its shadows.
Scammers, often from outside the country, began using stolen data to target Vietnamese people. Fake job offers, financial traps, identity fraud, powered by leaked names, phone numbers, and national IDs. These were not just individual scams. They became a systemic threat to public trust.
That is when it became clear: Vietnam needed a shield.
The Vietnam Personal Data Protection Law was the wake-up call. Not just a legal document, but a national decision. A signal that Vietnam would no longer be a passive participant in the global data economy. That it would take back control, protecting its citizens, defining its rules, and claiming digital sovereignty.
This context matters. It helps businesses see that this law is not just a compliance issue. It’s a strategic pivot by the government, one that smart companies will align with, not resist.
An Example Stories of Two Companies
Imagine a company collecting customer data to improve its service. One day, that information is leaked. The company has no proof of consent. No internal process. No one knows what to do.
Now picture a different company. It collects only necessary data. It’s transparent. It has a plan. If something goes wrong, it acts within hours, not days.
Both companies operate in the same market. But only one is ready. That’s the difference the Vietnam Personal Data Protection Law makes, not just in penalties, but in business continuity and brand trust.
What theVietnam Personal Data Protection Law Requires and Why It Matters
Scope and Application
The law covers any organization that collects, stores, uses, or shares the personal data of people in Vietnam. It applies even if the organization is located elsewhere, as long as it works with local users or customers.
Consent and User Rights
Consent must be active, informed, and purpose-specific. No hidden terms. No default opt-ins. Users must understand what data is collected, why, and how it will be used, and must be free to say no.
Assessments and Documentation
Organizations must create written explanations for their data practices, especially if data is transferred across borders. These assessments help authorities evaluate whether your business is handling data properly.
Breach Reporting
If personal data is leaked or misused, you have just 72 hours to report it. Delays not only bring legal trouble but damage trust. Preparation is non-negotiable.
Enforcement of 5 % of Annual Revenue
Violations can result in major financial penalties, up to 5 percent of annual revenue, or 10 times the profit gained through illegal data use. The law is enforced by the Ministry of Public Security of Vietnam.
Small Business Consideration
Some requirements may be eased temporarily for smaller companies. But the obligation to act responsibly, and to respond to breaches, still applies to everyone.
Why This Vietnam Personal Data Protection Law, and Why Now?
Many business leaders ask: Why is Vietnam doing this now?
Because the risks have changed. And Vietnam has changed, too.
- The country is now one of the region’s fastest-growing digital economies.
- Personal data is the currency of the future, and the weapon of choice for fraudsters.
- Citizens have been targeted by scams using stolen data.
- The government has seen how lack of rules weakens both public safety and economic stability.
This law is part of a wider movement: Vietnam’s push to define its digital future, not inherit it. It’s about balancing open markets with sovereign control.
And for foreign businesses, that’s not a wall, it is a welcome mat. It shows that Vietnam is serious about becoming a trustworthy, modern, competitive destination.
What to Do Next With Vietnam Personal Data Protection Law
Start with mindset. This is not just a checklist. It is a leadership test.
- Understand how personal data flows in your business.
- Create visibility, not confusion.
- Make compliance part of your brand, something customers see, not just regulators.
- Assign responsibility and build a response plan.
- Review your language. Does your consent form sound like a contract or a conversation?
- Ask your teams if the company needs this data and do users know what the company does with it.
Treating the Vietnam Personal Data Protection Law as a partnership, not punishment, will set you apart.
A Step-by-Step Path to Prepare for Vietnam Personal Data Protection Law
Even if every company is different, the journey toward compliance often follows a similar path. Here are six clear steps your business can follow to align with the Vietnam Personal Data Protection Law.
You do not need to complete them all at once, but moving forward with consistency is key.
Step 1: Understand Your Data
Identify what personal data you collect, where it comes from, and how it moves through your organization.
Step 2: Review Why You Collect It
Clarify your reasons for collecting each type of data. Only keep what’s necessary.
Step 3: Create Clear Consent Processes
Ensure users can say yes or no freely and in plain language. Avoid default opt-ins.
Step 4: Appoint Someone to Be in Charge
Assign a trusted person or team to manage data protection and communication with regulators.
Step 5: Prepare for Incidents
Have a simple, clear plan ready in case of a data breach. Speed matters.
Step 6: Write It Down
Document your practices. This shows intent and builds trust inside and outside your business.
Frequently Asked Questions (FAQ)
Q: Does the Vietnam Personal Data Protection Law require data to be stored locally?
A: Not in all cases. But authorities may require local storage or access for certain data types.
Q: Can we include consent in general terms and conditions?
A: No. Consent must be separate, active, and purpose specific.
Q: What if our company is outside Vietnam?
A: If you handle personal data of Vietnamese users, the law applies, no matter where you are based.
Q: Are small companies exempt?
A: Some obligations may be delayed for small firms, but responsible data handling is still required.
Q: What happens if we do not report a breach in time?
A: You risk higher fines and damage to your reputation. Having a plan makes all the difference.
Legal Readiness Is Business Strength
This is not just a law. It’s a moment.
Vietnam has drawn a digital boundary and invited the world to cross it, with respect, with care, with alignment.
The Vietnam Personal Data Protection Law is not a burden. It is a blueprint for growth with trust. For building businesses that last. For earning loyalty in a region that rewards those who act responsibly.
Foreign companies that prepare early and work in harmony with these new rules will be seen not just as compliant, but as credible, future ready, and welcomed.
About ANT Lawyers, a Law Firm in Vietnam
We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.
Source: https://antlawyers.vn/privacy/vietnam-personal-data-protection-law-new.html
