In an era where data is considered the "lifeblood" of the digital economy, the outflow of this core resource outside the country shows that Vietnam is facing serious challenges regarding digital sovereignty and the competitiveness of domestic businesses.
Red alert regarding digital sovereignty.
The discussion on the Law on Digital Transformation (afternoon of December 1st) at the 15th National Assembly session marked one of the strongest warnings about data security to date when National Assembly representative Pham Trong Nhan ( Ho Chi Minh City delegation) frankly pointed out the alarming reality that up to 99% of Vietnamese people's digital behavior data, from travel and shopping to entertainment and consumption, is contained within the ecosystems of foreign corporations. This leaves Vietnamese businesses in a state of "data hunger," a core element for training AI, developing algorithms, and personalizing services. According to representative Pham Trong Nhan, in the technology race, Vietnamese businesses "are having to run on someone else's turf." When data is not owned and managed by Vietnam, all efforts to develop a domestic digital platform are weakened. "Without Vietnamese data, there can be no Vietnamese AI," emphasized National Assembly representative Pham Trong Nhan.
Data is the "lifeblood" of digital transformation in businesses. Photo: Pham Hung
In the digital economy , every shift from consumption to production relies on data analysis. Without data, businesses cannot develop new business models, train artificial intelligence, optimize algorithms, or compete in an increasingly technology-driven market. Currently, from online shopping habits to entertainment behaviors, from booking rides and ordering food to electronic payments, cross-border platforms are able to collect, store, and analyze Vietnamese user data in areas that domestic businesses can barely access. Domestic applications have limited competitive opportunities not only due to capital or technology constraints, but also because of a lack of the "data fuel" needed to operate. The point made by National Assembly representative Pham Trong Nhan – "without Vietnamese data, there can be no Vietnamese AI" – accurately reflects the passive mindset of Vietnamese businesses in the technology race.
Data is the "lifeblood" of digital transformation. For businesses, a lack of data means a loss of competitiveness: inability to expand digital services, difficulty in developing e-commerce, and limitations on innovation. The government needs to shift strongly from a "management" mindset to a "creative and leading" one, establishing a transparent legal framework and protecting data ownership rights for businesses.
Dr. Mac Quoc Anh – Vice President and General Secretary of the Hanoi Association of Small and Medium Enterprises
Data dependence not only affects technology companies but also extends to e-commerce, logistics, finance, banking, and retail. Domestic e-commerce businesses acknowledge that they can only reach customers through the data gateways of foreign corporations at very high costs. When advertising relies on foreign platforms, user behavior analytics data is also locked down, leaving domestic businesses like "blindfolded drivers," unable to fully understand their own customers.
Based on practical experience, Mr. Le Van Tri – CEO of a logistics company – frankly stated that Vietnamese businesses are in a race for speed but lack the necessary fuel. "We want to innovate our services to better serve Vietnamese people, but customer behavior data is located outside of Vietnam. To reach Vietnamese customers, Vietnamese businesses have to pay fees to foreign platforms. This is inequality right from the start," Mr. Le Van Tri explained.
From the perspective of small and medium-sized enterprises (SMEs), Dr. Mac Quoc Anh – Vice President and General Secretary of the Hanoi Association of Small and Medium Enterprises – believes that data is a vital element of the digital economy, yet more than 90% of Vietnamese businesses lack it. When businesses lack data, they are unable to expand their markets, develop e-commerce, or apply AI or automation. According to Dr. Mac Quoc Anh, data loss means lost opportunities for breakthroughs and consequently slows down the entire economy.
From an international expert's perspective, Joseph P. Whitlock, CEO of the Global Data Alliance, warns that limited access to data puts domestic businesses at a competitive disadvantage and makes them dependent on foreign technology. Even regulatory bodies face difficulties when data is scattered outside the digital realm, leading to increased monitoring and operational costs.
More worryingly, the outflow of data also carries national security risks. When the behavior of tens of millions of citizens is analyzed by foreign corporations, Vietnam's ability to independently formulate policies, protect its market, and handle crises is significantly affected. This is why public opinion is particularly concerned.
A national data strategy and a unified legal framework are needed.
The outflow of Vietnamese people's behavioral data abroad is no longer just a technical or management issue, but a matter of national strategy. From the National Assembly to businesses, from experts to public opinion, everyone clearly sees that if Vietnam does not act soon, the digital economy will develop on an unsustainable foundation, and Vietnamese businesses will be at a disadvantage even in their own backyard.
Many National Assembly deputies pointed out that Vietnam's public digital infrastructure, from digital identification and payments to data sharing and cloud platforms, lacks unified standards. Deputy Be Trung Anh (Cao Bang delegation) warned that if this situation continues, all digital transformation efforts will fail because data is inconsistent across different locations, lacking a common connection and unable to create aggregated value. Deputy Nguyen Tam Hung (Ho Chi Minh City delegation) proposed that services on public digital infrastructure must be transparent, free from monopolies, and subject to independent oversight. Otherwise, the risk of "privatizing benefits and socializing costs" in digital transformation projects could arise, distorting the market.
At the strategic level, Deputy Head of the Central Committee's Policy and Strategy Department, Pham Dai Duong, stated that data should be considered a national resource, equivalent to land or minerals. He emphasized that protecting data is protecting national sovereignty, and Vietnam must have both pillars: technical capacity to master the infrastructure and a legal framework to protect the ownership, governance, and sharing of data. Laws must change as quickly as technology, otherwise they will become outdated as soon as they are enacted.
In response to the urgent demands of reality, Minister of Science and Technology Nguyen Manh Hung affirmed that the Law on Digital Transformation must become a "unified framework law," connecting the digital government, digital economy, and digital society, and overcoming the current fragmentation. The Minister warned that any delay would disrupt the national data infrastructure from the outset, leaving Vietnam at a disadvantage in the technological competition.
The draft law is being finalized with the aim of requiring cross-border platforms to comply with Vietnamese regulations, including storing Vietnamese user data within Vietnamese territory, sharing aggregated data when requested by regulatory agencies, and ensuring information security. Vietnamese data must be processed according to Vietnamese law. This is a principle to protect digital security and long-term interests. Alongside building the legal framework, Vietnam is also promoting the development of national data infrastructure, including large data centers, domestic cloud computing platforms, and shared data repositories for government agencies. It is expected that in the coming years, Vietnam will also build clusters of big data technologies and make-in-Vietnam digital platforms capable of analyzing, processing, and recreating data value domestically. This will be a crucial factor in building a national data ecosystem and supporting Vietnamese businesses in regaining their competitive edge in the domestic market.
Source: https://mst.gov.vn/cap-bach-gianh-lai-dong-chay-du-lieu-so-197251206220716921.htm
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