US tech firms warn Vietnam's planned law to hamper data centres, social media

U.S. tech companies, represented by the Information Technology Industry Council (ITI), have expressed concerns over Vietnam’s draft data law, warning it could hinder the growth of social media platforms and data centers.

The law proposes strict regulations on cross-border data transfers and increased government access to information, potentially complicating operations for companies like Meta, Google, and Equinix.

While Vietnam aims to expand its data center industry, the draft law may deter foreign investment. The American Chamber of Commerce is urging Vietnamese authorities to reconsider, citing significant compliance challenges and concerns over government access to private data.