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Vietnam: New draft Cybersecurity Administrative Sanctions Decree

By 2 Mins Read

In brief

To enforce (i) Decree 53 guiding the Cybersecurity Law and (ii) the Personal Data Protection Decree (i.e., Decree 13), the Ministry of Public Security (MPS) has been working on a draft Cybersecurity Administrative Sanctions Decree (CASD).

In detail

By way of background, the first version of the CASD was released for public consultation in September 2021.

Last year, the MPS also held a workshop in Hanoi to collect public comments on a version of the CASD where repeated violators may be subjected to a monetary fine of up to 5% of the violator’s annual revenue.

Today, the MPS offered an updated version of the CASD for public consultation.

From a quick review, below are the notable issues:

  • The draft CASD applies to both onshore and offshore entities, including offshore entities (as well as their branches and representative offices in Vietnam) providing telecommunications services, internet services, content services on the internet and IT, cybersecurity and cybersecurity information services.
  • The draft CASD sets out a monetary fine of up to 5% of the violator’s total revenue of the preceding fiscal year in Vietnam in the following cases:
    1. Repeated violations in protecting personal data when providing marketing and advertising services
    2. Repeated violations in illegal collection, transfer, sale and purchase of personal data
    3. Acts of (illegally) disclosing and/or losing the personal data of 5 million or more Vietnamese citizens
    4. Acts of (illegally) transferring the personal data of 5 million or more Vietnamese citizens overseas
  • The tentative effective date of the draft CASD is 1 December 2023. 

The deadline for submitting comments to the MPS on the draft CASD is 20 June 2023.

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Author

Hung Tran is the practice group leader of the Intellectual Property (IP) and Technology Practice Groups of Vietnam offices. For years, he has been constantly ranked as a leading IP lawyer by numerous researchers such as Chambers Global and Chambers Asia.
He regularly writes articles concerning pressing legal issues in both English and Vietnamese, and his works have been published regularly in various reputable publications. He has assisted the government in reviewing and revising the IP Law, the IP provisions under the country’s criminal code, the draft e-Transaction Law, and the first draft Personal Data Protection Decree, etc.
He is also a respected presenter in the area of IP, Franchising, Data Privacy, and Entertainment Laws. In addition to authoring many publications, Mr. Tran has lectured at Waseda University School of Law (Japan), Vietnam-German University, Hanoi Law University, Diplomatic Academy of Vietnam, Foreign Trade University, an international MBA Program (CFVG) and IP laws for the Professional Training School of the Ministry of Industry and Trade. He used to serve as the Chairman of the Legal Committee of Hanoi American Chamber of Commerce.

Author

Huyen Minh Nguyen is an Associate in BMVN International LLC, Hanoi office.

Author

Huu Tuan Nguyen is a special counsel in the Commercial, Data, IP Tech and Trade Practice Group of Baker McKenzie's Vietnam office.
Huu Tuan is consistently involved in significant matters for prominent clients and has over ten years of extensive experience. He has a profound understanding on various legal aspects, including provision of legal advice and represent clients on intellectual property, cyber security, data privacy, technology, commercial and trade, and dispute resolution.
His works cover a full range of contentious and non-contentious aspects in the TMT space and acts for leading clients across the technology, entertainment, telecom, film, fashion, and consumer goods sectors. He regularly advises and represents multinational companies on tech-related transactions, data protection, privacy, e-commerce, compliance and disputes.
His work also covers IP law, focusing on copyright, unfair competition, domain names, and commercial intellectual property, including licensing arrangements, trade secrets, and technology laws. In addition, he is also well experienced in commercial contracts, marketing and advertising matters.

Author

Tuan Linh Nguyen is a Government Affairs Manager in in BMVN International LLC, Hanoi office.

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