Proposals for the Development of Law on Data and Law on Personal Data Protection
In February 2024, the Ministry of Public Security (“MPS“) published its proposals to request for the development of a Law on Data and a Law on Personal Data Protection. The proposals were issued in line with the tasks set out in the Prime Minister’s Directive No. 04/CT-TTg dated 11 February 2024, to promote the implementation of the project to develop the application on residential data and electronic identification and authentication to serve the national digital transformation for 2022 – 2025 (with a vision up to 2030).
The proposals were issued as a preliminary step for lawmakers to develop the legislation. While the draft laws are not yet available, the proposals include a detailed impact assessment which rationalises the requirement for these laws and include certain insights as to what may be anticipated in the draft laws to come.
The Law on Data is centred on four main policies, and will regulate the following matters: (i) constructing, developing, administering and processing data, the application of science and technology in data processing, and the State’s management of data; (ii) the National Comprehensive Database; (iii) constructing, developing and use of National Data Centre infrastructure; and (iv) data-related products and services.
The Law on Personal Data will be Vietnam’s omnibus and unified personal data protection law, replacing the current Decree on Personal Data Protection. It will harmonise the current fragmented legal framework for personal data protection in the country, in which data protection matters continue to be regulated across different laws and overseen by different regulators.
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New Development Strategy for Hydrogen Energy
On 7 February 2024, the Prime Minister issued Decision No. 165/QD-TTg to approve Vietnam’s hydrogen energy development strategy until 2030, with a vision to 2050. Following “National Power Development Plan VIII”, the strategy sets out a roadmap and policy directions for the country’s development and push in enhancing its hydrogen energy capacity and use.
Under this strategy, Vietnam will target a production of 100,000 – 500,000 tonnes of clean hydrogen annually by 2030, and 10 – 20 million tonnes by 2050. Furthermore, by 2050, the strategy targets to have around 10% of Vietnam’s final energy consumption demands generated by hydrogen energy and hydrogen-derived fuel.
Enactment of New Regulations on High-Tech Parks (Decree 10/2024/ND-CP)
On 1 February 2024, the Government passed Decree 10/2024/ND-CP on regulations on high-tech parks (“New Decree“), replacing the decree on the same subject (Decree 99/2003/ND-CP) passed over 20 years ago. The New Decree came into effect from 25 March 2024.
The New Decree provides new regulations on the establishment and expansion of high-tech parks, as well as incentives and support policies for investors in this field. For example, investors will be entitled to land lease fee exemptions, reimbursements for land clearance costs, and preferential policies in access to capital.
As a comprehensive regulation on high-tech parks, the decree also sets out details concerning the conditions, requirements and procedures that investors need to comply with when establishing high-tech parks in Vietnam.
Enactment of Law on Credit Institutions No. 32/2024/QH15
On 18 January 2024, the National Assembly of Vietnam passed a new Law on Credit Institutions, which will take effect from 1 July 2024 (save for certain provisions concerning enforcement of security over real estate, which will take effect from 1 January 2025). The new law replaces the current Law on Credit Institutions which was passed in 2010.
The new law reduces the shareholding limits in a credit institution for (i) corporate shareholders and (ii) shareholders and their related persons. A corporate shareholder cannot hold more than 10% of the charter capital in a credit institution (versus 15% under the current law), while a shareholder and its related persons cannot hold more than 15% (versus 20% under the current law).
Other key changes include (i) the regulation of “early intervention” measures that can be taken by the State Bank of Vietnam to handle weak or distressed credit institutions; (ii) the inclusion of additional business activities that can be undertaken by commercial banks (e.g. issuing letters of credit), and (iii) broader information disclosure requirements on managers of credit institutions.
Enactment of Law on Land No. 31/2024/QH15
On 18 January 2024, the National Assembly of Vietnam passed a new Law on Land, which will take effect from 1 January 2025. The new law replaces the current Law on Land which was passed in 2013.
The new Law on Land provides for conversion of rental payments for leased land from the State from lump sum payments to annual payments, easing the burden of investors when investing in Vietnam.
The law also recognises the right of foreign-invested enterprises to receive land use rights in the form of capital contribution.
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Lao PDR and Vietnam Sign MOU on Cooperation in the Field of Internet Resource Development
On 10 January 2024, the National Internet Centre (“LANIC“) of the Ministry of Technology and Communications of Lao PDR and the National Internet Centre (“VNNIC“) of the Ministry of Information and Communications of the Republic of Vietnam signed a memorandum of understanding (“MOU“) on cooperation in the development of internet resources. The purpose of the MOU is to enhance bilateral cooperation between Lao PDR and Vietnam in the fields of (i) management and development of national internet resources and improvement of the important infrastructure of the internet, and (ii) cooperation, counselling and human resource development to encourage and promote the work of digital transformation in Lao PDR.
At the signing ceremony, LANIC and VNNIC agreed to collaborate whereby VNNIC would share its expertise with LANIC on country code Top-Level Domain (ccTLD), Domain Name System (DNS) and Internet security, Internet Protocol v6 (IPv6) transition activity, statistics collection and monitoring. VNNIC would also conduct training and seminars to encourage LANIC to create a Lao Internet Exchange Network Operation Group (LIXNOG).
LANIC and VNNIC have been collaborating on internet resource development since 2011. In 2012, LANIC sent delegates to VNNIC for six months to learn internet name coding. In 2013, LANIC and VNNIC also signed the Minutes of the Meeting on the direction and cooperation plan for 2013 to 2015 in relation to the drafting of legislation and regulations on internet code in Lao PDR, as well as training and technical support.
In 2016, LANIC and VNNIC continued to cooperate and support each other. VNNIC sent employees and experts to conduct training on internet name code work for LANIC, covering topics such as policy and legislation of internet name code, third level internet name code in Domain Name System Security Extensions (DNSSEC) and local language internet name code.
In addition to internet name code work, VNNIC also provides support to LANIC in the field of resource management and the use of Internet Protocol (IP). It has also sent employees and experts to LANIC to provide training for this purpose.
Global Minimum Tax Takes Effect
On 29 November 2023, the National Assembly of Vietnam passed Resolution No. 107/2023/QH15 to pave way for the future implementation of tax regulations to impose a top-up tax in line with the Global Anti-Base Erosion (“GloBE“) model rules, i.e. to implement global minimum tax rules. As a result, from 1 January 2024, companies that pay less than 15% in tax may be subject to a top-up tax.
The GloBE model rules are designed to ensure large multinational enterprise groups pay a minimum level of tax on their income in respect of every jurisdiction in which they operate.
On 8 January 2024, the Prime Minister issued Decision 19/QD-TTG to direct the Ministry of Finance to collaborate with the state authorities to draft a decree to further guide the implementation of the global minimum tax rules.
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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
