Business & Economy Startups Former US Ambassador to Vietnam says cybersecurity law will stifle economic growth

Former US Ambassador to Vietnam says cybersecurity law will stifle economic growth




- Advertisement -

The Ambassador points to an indecisive policy that makes it impossible for business to make decisions.

Vietnam has grown into the ‘economic miracle’ of Southeast Asia and a large part of that has been driven by a vibrant technology community. But is that all in peril? A former American Official certainly thinks so.

On June 12, 2018, the Vietnamese Government released The National Assembly’s passage of the new cybersecurity law that betrayed its progress with the Fourth Industrial Revolution or 4IR, which first instructed government agencies to improve Vietnam’s competitiveness by leveraging digital and communications technology.

The new passage requires that foreign firms providing ICT services to Vietnamese consumers to establish representative offices in-country and store Vietnamese users’ data within Vietnam’s territory.

- Advertisement -

In his recent piece published by The National Interest, David Shear, a former U.S. Ambassador to Vietnam from 2011 to 2014 shared his concerns.

“When it comes to progress, Vietnam’s approach has always been taking two steps forward and one step back,” said Shear, commenting on how Vietnam’s GDP growth of 6.8 per cent last year means nothing after the newest law.

This giant step back might hurt Vietnam’s Small and Medium-sized Enterprises (SMEs) considering they occupy 98 per cent of Vietnamese businesses. The strict data localization requirements will limit their capacity to access data and do cloud computing service, as well as internet service providers’ availability.

Also Read: Plug and Play’s Christian Knipfer describes Taiwan’s strengths in building a startup ecosystem

In 2014, the European Center for International Political Economy (ECIPE) estimated that data localization would reduce the country’s GDP growth by 1.7 per cent per year.

To highlight a free internet’s impact on Vietnam’s GDP, a recent study by Temasek and Google showed that the country’s internet economy increased from US$3.3 billion to US$5.7 billion between 2015 and 2017. E-commerce dominated the market.

According to Shear, the cybersecurity law is directly attacking one of Vietnam’s strongest success stories of its recent economic miracle. The new law jeopardized not only SMEs’ chance to contribute to Vietnam’s economy, but also the relationship with foreign partners.

It has been reported that U.S. Administration officials and legislators expressed concerns during Deputy Prime Minister Vuong Dinh Hue’s visit to Washington in June.

Also Read: Can Singapore evolve to be an innovative farming country with agritech in the lead?

Shear asks the question for Vietnam, “Will the  move still be favored over the free flow of trade and cross-border data flows of modern business operations?”

His concern is that the obsession with restrictive cybersecurity laws will kill the vibrant tech economy that makes the laws relevant in the first place.

Photo by Quang Duy on Unsplash

The post Former US Ambassador to Vietnam says cybersecurity law will stifle economic growth appeared first on e27.

Source: E27

- Advertisement -

Video of elderly cleaner reminds netizens of Tan Chuan-Jin’s “exercise” comments

Singapore -- A video of an elderly cleaner in a hawker centre has sparked pointed comments about him doing it for the “exercise”. The comments online come in reference to an incident in 2015, during which the Minister for Social and Family...

Traffic cones and sandbags placed on car in parking dispute

Singapore -- A man, upset that another person had parked in front of the terrace house he is occupying, placed traffic cones and sandbags on top of the other car and blocked it with two trashcans and his own car. The police...

Parliament live streaming: Now go for live radio broadcast

Live streaming of Parliament proceedings has just made a comeback. And almost immediately, Singaporeans learnt how members of the legislature go about their duty of debating issues affecting people’s lives. And there could not have been a better issue than TraceTogether,...