Vietnam approves data law, $67b rail plan

Aims to create more comprehensive legal system for energy sector


Reuters December 01, 2024

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HANOI:

Vietnam's parliament approved laws on data protection and electricity, as well as a resolution supporting a $67 billion high-speed rail project on Saturday, the last day of its twice-yearly regular session.

The railway, Vietnam's most ambitious infrastructure project, is to run from the capital Hanoi to the southern business hub of Ho Chi Minh City. The 1,541-km (958-mile) project is expected to be completed in 2035.

The data law tightens requirements on personal data processing and data transfer overseas, a move that groups representing US tech firms have said could hamper their operations in the Southeast Asian country.

The law will also facilitate the government's access to data when authorities in the Communist-run nation consider that necessary.

These restrictions come only days after Vietnam's Prime Minister Pham Minh Chinh urged the United States to lift export restrictions on some technology and said the country wanted to develop satellite communications.

He did not make reference to possible US tariffs on Vietnam despite threats from the upcoming Trump administration of up to 20% duties on all imports. Vietnam is a significant exporter to the US and has a large trade surplus with Washington.

"We hope the United States will lift its embargo on Vietnam for some technologies," Chinh told the conference. "We are not fighting anyone, so why do you keep the embargo?" Chinh said.

The prime minister also said Vietnam wanted to develop satellite communications and was in talks with US aerospace giant SpaceX.

Additionally, Vietnam's new electricity law is expected to remove some hurdles for investment in energy projects in Vietnam and speed up approvals of so-called direct power purchase agreements, which allow manufacturers to negotiate electricity supplies directly with providers of renewable energy. The measure aims to create a more comprehensive legal system for the energy sector, which is now subject to multiple, separate regulations.

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