On May 2, 2024, Vietnam’s Ministry of Justice published on its online platform the most recent version of the draft decree on administrative sanctions for violations in the field of cybersecurity (“Draft Sanction Decree”) to gather feedback and contributions from the community and stakeholders. After receiving the Ministry of Justice’s assessment, the Ministry of Public Security (“MPS”), in charge of drafting the Draft Sanction Decree, may make further revisions before submitting it to the government for review and final decision on enactment. The decree is expected to have an effective date of June 1, 2024. The stringent penalties for infringements involving personal data of the previous draft version remain in this Draft Sanction Decree—a sign of the proactive stance of the MPS in enforcing the Personal Data Protection Decree (“PDPD”). Effective Date and Transitional Provisions It is important to note that the Draft Sanction Decree does not impose any new obligations on organizations or individuals, and only sets out the administrative sanctions that could be imposed on violators as soon as June 1, 2024, which is indicated as the effective date in Article 49. This signals the MPS’s eagerness to begin taking enforcement actions against recalcitrant organizations and individuals that have not complied with the various obligations imposed on them under the Law on Network Information Security (enacted in 2015), the Law on Cybersecurity (enacted in 2018) and its guiding decree (Decree 53 – enacted in 2022), and the most recent PDPD (enacted in 2023). Article 50.1 of the Draft Sanction Decree outlines the transitional provisions regarding administrative violations in the cybersecurity field. It clarifies that the decree does not have retroactive effect, by stating that violations occurring before its effective date, but discovered or under review after such effective date will be subject to the regulations on administrative

Last year, the government of Vietnam issued the Personal Data Protection Decree (PDPD), which took effect on July 1, 2023. The Department of Cybersecurity and High-Tech Crime Prevention and Control (referred to as “A05”) under the Ministry of Public Security (MPS) is tasked with implementing and enforcing the requirements under the PDPD. While a decree on sanctioning provisions for noncompliance with the PDPD is still pending issuance, further movements from the MPS/A05 indicate that it aims to start conducting its first inspections into PDPD compliance. This is the first time that companies and government agencies have been officially questioned by the MPS about their compliance with the PDPD. The purposes of this inspection program are (1) to evaluate the compliance status of a group of selected companies and government agencies and to understand challenges in complying with the PDPD requirements; (2) to propose sanctions for noncompliance; and (3) to collect information and comments for the development of the upcoming Personal Data Protection Law—not to spot noncompliance with the PDPD specifically. This round of inspection includes a number of companies in 14 sectors (including e-commerce, aviation, telecom, banking and finance, intermediary payment, insurance, gaming, education, healthcare, real estate, data processing services, ride hailing, etc.). The companies targeted by this inspection program must: (1) submit a report on compliance to the MPS/A05 by May 30, 2024 (this report is different from the data protection impact assessment (DPIA)/transfer impact assessment (TIA) submission requirements); and (2) coordinate with the MPS/A05 on any further investigation actions from June to August 2024. The inspection results will be available by September 2024. Key information to be reported includes, among others: (1) a description of the activities and measures carried out to implement the PDPD (such as protecting data subjects’ rights, performing administrative procedures, preventing violations, etc.)

The latest edition of Practical Law Company’s Doing Business in … Global Guide includes a chapter on Vietnam written by lawyers from Tilleke & Gibbins’ Ho Chi Minh City and Hanoi offices. The popular guide, produced in association with Lex Mundi, the world’s largest network of independent law firms, provides the ins and outs of establishing and operating a business in more than 50 jurisdictions worldwide.The Vietnam chapter covers the following main topics: