National Assembly Standing Committee reviews draft data security law

The draft Draft Law on Data Security adopts a lifecycle approach and proposes managing data security risks related to the digital economy, digital infrastructure, investment, technology transfer, artificial intelligence (AI), emerging technologies, supply chains and cross-border data flows.

President of the National Assembly Tran Thanh Man speaks at the event. (Photo: VNA)
President of the National Assembly Tran Thanh Man speaks at the event. (Photo: VNA)

Hanoi (VNA) - The National Assembly (NA) Standing Committee continued its sixth session on September 23, discussing the draft Draft Law on Data Security and the draft Law on Electronic Identification and Authentication.

Presenting the Government's proposal on the draft Draft Law on Data Security, Deputy Minister of Public Security Sen. Lt. Gen. Pham The Tung said the legislation aims to institutionalise Party policies on national defence and security in cyberspace and digital economic development, making data security an integral requirement throughout the country's digital transformation.

The draft comprises six chapters and 25 articles and establishes four levels of data security risk. Levels 3 and 4 inherit the classification of important and core data under the Data Law, while data controllers will determine and assume responsibility for levels 1 and 2 without additional administrative procedures.

The draft adopts a lifecycle approach and proposes managing data security risks related to the digital economy, digital infrastructure, investment, technology transfer, artificial intelligence (AI), emerging technologies, supply chains and cross-border data flows.

For level-4 data held by Party and State agencies and the armed forces, the draft sets a deadline of January 1, 2035, for transitioning to post-quantum cryptography.

The maximum administrative fine for serious violations involving the leakage, theft or destruction of level-3 and level-4 data will be capped at 5% of revenue in Vietnam or global revenue, depending on the case, while preferential treatment would be available for small businesses and innovative start-ups.

President of the National Assembly Tran Thanh Man supported the need for the law, stressing that data has become a vital resource for countries in the Fourth Industrial Revolution and must be effectively secured.

He highlighted the importance of protecting data throughout its lifecycle and regulating AI governance. He said the draft's risk-based and lifecycle approaches represented significant progress in protecting data sovereignty in the digital and AI era, while stressing that implementation feasibility and the balance between security and digital economic development must be carefully considered.

He noted that data security legislation must become a strategic tool rather than a barrier.

The Standing Committee also discussed the draft Law on Electronic Identification and Authentication.

Tung said the legislation would establish a unified and stable legal framework for electronic identification and authentication, while strengthening the protection of human rights, citizens' rights and personal data in the digital environment.

He said current management requirements called for identification to move beyond individuals to encompass vehicles, locations, goods, real estate, Internet of Things infrastructure and digital assets.

A comprehensive electronic identification and authentication framework would help prevent crime, address anonymous SIM cards and fake accounts, combat online fraud and counter increasingly sophisticated biometric impersonation enabled by AI, he said.

Chairman of the NA's Committee for National Defence, Security and External Affairs Sen. Lt. Gen. Le Tan Toi said the committee's permanent members agreed on the need for the law to institutionalise Party policies on national security, public order and national digital transformation, while consolidating existing provisions scattered across subordinate legal documents.

Also on September 23, the NA Standing Committee discussed the draft revised Law on Handling Administrative Violations. /.

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