In 2021, Facebook earned revenue of 117.9 billion USD. Google also set a record of earning 257 billion USD from advertising and services for users. Most of the revenue and profits of Facebook, Google, Amazon, Gojek are based on users' big data using strategies. The strategy "data or nothing" helps technology giants approach users, and analyze habits and needs to sell goods, services, and advertising.

The scale of Vietnam's digital economy last year is estimated at 21 billion USD, up 31% compared to 2020. Particularly, e-commerce, Fintech, and Edtech grew strongly thanks to the explosion of big data amid the pandemic. Data that is effectively developed, protected and exploited will be a resource to develop the ICT industry and the digital economy.

Vietnam is prominent in terms of cross-border data exchange, ranking 7th among countries with the largest cross-border data flows, according to Nikkei Asia. The growth of cross-border data flows in general and cross-border personal data flows in particular is an opportunity but also poses many challenges.

Mr. John Rockhold, Chairman of the American Chamber of Commerce in Vietnam (AmCham), said the free data flow allows Vietnamese companies to access global services such as data centers and international finance in the field of digital payments, which is vital to develop Vietnam's digital economy.

Vietnam needs to ensure an open and compatible regulatory environment that allows access to information, data privacy, protection of intellectual property rights, network security and free trade in digital services on a fair, reciprocal manner and in line with global standards, expert said.

Mr. Bruno Sivanandan, member of the Management Board of the Digital Economy Working Group, Vietnam Business Forum (VBF), suggested that the Vietnamese Government should set up a regime to protect personal data, because this is an important step in developing a vibrant and innovative digital economy. The challenge lies in harmonizing the collection of information for the benefit of society with ensuring the security of the system and the privacy of the people.

Looking for a solution

However, the cross-border flow of data is causing concerns in the control and security of data when they are outside national borders.

Mr. Nguyen Minh Hong, Chairman of the Vietnam Digital Communications Association, said that the big challenge is how to protect the data safety of users, protect the privacy of each person without harming the data flow, which is the lifeblood of the digital economy. The policy problem is to find a balance between data exchange (including personal data and cross-border data) and protection of network security and users' rights.

Mr. Nguyen Quang Dong, director of the Institute for Policy Research and Communication Development (IPS), said Vietnam should set dual goals, promoting the free flow of data to serve the development of the digital economy, and at the same time ensure the safety and privacy of data for users.

“A multi-instrumental policy system may serve Vietnam well, rather than relying solely on laws and regulations, which pose a big challenge in terms of enforcement capacity. In addition to hard measures, additional measures including soft standards to encourage self-compliance such as data safety standards and technology solutions to help protect data should be considered,” said Mr. Dong.

From a legal perspective, Ms. Chu Thi Hoa, Deputy Director of the Institute of Legal Sciences (Ministry of Justice), raised the issue: "Data has become a valuable resource in the digital era, even compared to a special oil resource especially in the digital economy. However, who owns the personal data, who will have the right to sell or buy that information? To what extent is the collected personal information disclosed? These are big questions that the Vietnamese legal system has not yet answered.”

Deputy Minister of Information and Communications Pham Duc Long revealed that the Ministry of Information and Communications plans to build and develop the national data infrastructure, with the goal of bringing Vietnamese people's data to storage in Vietnam, forming a system of international and national data centers as well as regional and local data centers which are connected. This will turn Vietnam into a regional and international data storage and processing center.

Dau Tu

Legal gaps exist on protection of personal data in Vietnam

"There are still legal gaps on personal data protection that need to be filled in in the coming time," Dr. Chu Thi Hoa, deputy director of the Institute of Legal Sciences (Ministry of Justice) told VietNamNet.

Data is resource for Vietnam's economic development

Deputy Minister of Information and Communications Pham Duc Long at the Vietnam Internet Day 2021 spoke on the topic "Recovery and breakthrough in the era of datafication".