Decree 53/2022 implementing the Law on Cybersecurity in Vietnam

In August 2022, the Government issued Decree 53/2022 to implement various provisions of the Law on Cyber Security 2018 (LCS 2018). We summarise below certain key points of Decree 53/2022:

  • Data localization: Decree 53/2022 provides more detailed guidance on data localization in Vietnam. Please see our separate blog on this issue here.

  • Using cryptography (“mật mã”) to protect network information: If necessary for the national security, safety and order of society or protecting legitimate rights and benefit of others, the authority could request related individuals/organizations to encrypt information not considered as State secret before storing, transmitting on the Internet;

Decree 53/2022 - Further guidance on data localisation in Vietnam

Introduction

In August 2022, the Government issued Decree 53/2022 providing, among other things, further guidance on data localization requirements in Vietnam. Article 26.3 of the Law on Cyber Security 2018 (LCS 2018) provides for a general data localization requirement. However, due to the lack of implementing regulations, such provision is not enforced in practice for several years. The new guidance under Decree 53/2022 will likely make the law enforceable in practice from 1 October 2022. In this post, we discuss some salient points of the data localization requirements under Decree 53/2022. This post is written by Trinh Phuong Thao and edited by Nguyen Quang Vu.

Injection of increased capital into DICA of foreign invested companies in Vietnam after expiry of contribution time limit

Under Circular 6 of the State Bank of Vietnam dated 26 June 2019 guiding the forex management on direct foreign investment into Vietnam (Circular 6/2019), foreign and Vietnamese investors (Investors) of a foreign invested enterprise (FIE) are required to inject capital contributions to the FIE through its direct investment capital account (DICA) opened at a bank in Vietnam. This article will discuss whether the Investors can inject the increased charter capital (Increased Capital) into the DICA if the time limit for making the capital contribution under the IRC already expired.

Stricter conditions for foreign borrowings by Vietnamese entities under draft circular

The State Bank of Vietnam (SBV) is drafting a circular (Draft) to replace Circular 12 dated 31 March 2014 on conditions for enterprises to borrow foreign loans not guaranteed by the Government (Circular 12/2014). The Draft has some remarkable changes to the conditions of foreign borrowings by Vietnamese companies and credit institutions, and generally will tighten such conditions.