Draft Law on Personal Data
On 24 September 2024, the Government issued a draft Law on Personal Data for public consultation (“Draft Law“). This Draft Law is intended to be Vietnam’s first consolidated “law” that will regulate personal data, and is expected to supersede not only the existing Decree on Personal Data Protection (“PDP Decree“) (see our previous Legal Update here), but also close up inconsistencies in other legislation that regulate personal data protection matters.
The Draft Law maintains much of the core concepts found in the PDP Decree. This includes a consent-driven legal basis for data processing, as well as the controversial requirement to prepare and submit impact assessment dossiers.
It includes, however, numerous sectoral additions. These include rules for personal data processing in the context of cloud computing services, big data, artificial intelligence, and the financial sector. The draft also contains regulations for processing personal data in an employment context (particularly in the recruitment and monitoring of employees).
Other notable concepts introduced by the draft include the use of a new “rating system” for companies in personal data processing, as well as new types of service offerings that companies can provide in the field (e.g. data protection personnel).
New Regulations on Implementing Overseas Employee Share Plans (under Circular 23/2024/TT-NHNN)
On 12 August 2024, the State Bank of Vietnam’s Circular 23/2024/TT-NHNN (“Circular 23/2024“) came into effect. Circular 23/2024 amends the existing Circular 10/2016/TT-NHNN which was first passed eight years ago.
Circular 23/2024 introduces changes to the ways and procedures by which overseas-based employee share plans are to be implemented in Vietnam. This notably includes abolishing the burdensome registration requirements with the State Bank of Vietnam (“SBV“) for such plans.
Under the new regulations, employee share plans (which could potentially include option plans) may be implemented without the need for registration if they do not involve a generation of cash flow from Vietnam to overseas. Instead, oversight of these plans will be carried out through credit institutions at which specialised bank accounts need to be opened in order for these plans to be implemented. It also introduces more frequent reporting requirements.
In light of the abolishment of the SBV registration process, it remains to be seen whether this effectively means that any overseas-based employee share plans that generate a cash flow overseas have become prohibited.
Decree No. 80/2024/ND-CP on Direct Power Purchase Agreement Mechanisms
On 3 July 2024, the Government enacted its long-awaited Decree 80/2024/ND-CP on the mechanism for direct power purchase agreements (“DPPA“). This decree came into effect on the same date of its enactment.
The decree sets out two DPPA (direct electricity purchase) models: (i) private line DPPA, and (ii) grid-connected PPA.
The private line DPPA model allows parties to directly reach agreement on the terms without specific electricity pricing restrictions. There is no template DPPA provided in the decree, thereby suggesting that parties are generally free to reach agreement on the terms of the electricity purchase.
The grid-connected DPPA applies to wind or solar projects that have a capacity of at least 10 megawatts (MW) and which participate directly in Vietnam’s wholesale electricity market. It also only allows large corporate offtakers to participate in this model. This model adopts various formulae for the determination of electricity pricing, but centres around the use of a “contract for difference” (or virtual power purchase agreement).
Draft Law on Data
On 1 July 2024, the Government issued the draft Law on Data for public consultation (“Draft Law“). The Draft Law is intended to be a consolidated law to regulate all types of data, including personal data, and is the first law of its kind in the country.
In its present form, the Draft Law will regulate the construction, development, processing and management of data. It includes rules for providing data to state agencies, cross-border transfers of certain core or important data, and measures that need to be put in place in measure to prevent risks during data processing.
It also introduces the concept of “data products and services”, which are generally those products and services related to data processing for commercial services. Therefore, companies that provide these products and services are likely to be subject to new regulatory (and potentially licensing) requirements.
For more information, click here to read our Legal Update.
Draft Law on Digital Technology Industry
On 1 July 2024, the Government issued a draft Law on Digital Technology Industry (“Draft Law“) for public consultation.
The Draft Law will set out general regulations to promote, develop and support various industries in the digital technology space. These include digital assets, digital technology parks, innovative start-ups, semiconductors and artificial intelligence.
Some of these promotion, development and support measures include the offer of incentives to certain business sectors (the extent of which will be later regulated) and the creation of a sandbox for testing of digital technology products and services.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
