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HANOI, Vietnam — U.S. tech companies have warned Vietnam’s government that a draft law to tighten rules on data protection and limit data transfers abroad would hamper social media platforms and data center operators from growing their businesses in the country.

The Southeast Asian nation with a population of 100 million is one of the world’s largest markets for Facebook and other online platforms, and is aiming to exponentially increase its data center industry with foreign investment in coming years.

The draft law “will make it challenging for tech companies, social media platforms and data center operators to reach the customers that rely on them daily,” said Jason Oxman, who chairs the Information Technology Industry Council (ITI), a trade association representing big tech companies including Meta, Google and data centers operator Equinix.

The draft law, being discussed in parliament, is also designed to ease authorities’ access to information and was urged by the ministry of public security, Vietnamese and foreign officials said.

The ministry of public security and the information ministry did not respond to attempts to contact them via email and phone.

Vietnam’s parliament is discussing the law in its current month-long session and is scheduled to pass it on Nov. 30 “if eligible,” according to its program, which is subject to changes.

Existing Vietnamese regulations already limit cross-border transfers of data under some circumstances, but they are rarely enforced.

It is unclear how the new law, if adopted, would impact foreign investment in the country. Reuters reported in August that Google was considering setting up a large data center in southern Vietnam before the draft law was presented in parliament.

Research firm BMI had said Vietnam could become a major regional player in the data center industry as limits on foreign ownership are set to end next year.

Among the provisions of the draft law is prior authorization for the transfer overseas of “core data” and “important data,” which are currently vaguely defined.

“That will hinder foreign business operations,” Oxman told Reuters.

Tech companies and other firms favor cross-border data flows to cut costs and improve services, but multiple jurisdictions, including the European Union and China, have limited those transfers, saying that allows them to better protect privacy and sensitive information.

Under the draft law, companies will have to share data with Vietnam’s ruling Communist Party and state organizations in multiple, vaguely defined cases including for “fulfilling a specific task in the public interest.”

The U.S. tech industry has raised concerns with Vietnamese authorities over “the undue expansion of government access to data,” Oxman said.

The new law “would cause significant compliance challenges for most private sector companies,” said Adam Sitkoff, executive director of the American Chamber of Commerce in Hanoi, noting talks were underway to persuade authorities to “reconsider the rushed legislative process” for the law.
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PARIS — Seven French families have filed a lawsuit against social media giant TikTok, accusing the platform of exposing their adolescent children to harmful content that led to two of them taking their own lives at 15, their lawyer said on Monday.

The lawsuit alleges TikTok’s algorithm exposed the seven teenagers to videos promoting suicide, self-harm and eating disorders, lawyer Laure Boutron-Marmion told broadcaster franceinfo.

The families are taking joint legal action in the Créteil judicial court. Boutron-Marmion said it was the first such grouped case in Europe.

“The parents want TikTok’s legal liability to be recognized in court,” she said, adding: “This is a commercial company offering a product to consumers who are, in addition, minors. They must, therefore, answer for the product’s shortcomings.”

TikTok, like other social media platforms, has long faced scrutiny over the policing of content on its app.

As with Meta’s Facebook and Instagram, it faces hundreds of lawsuits in the U.S. accusing them of enticing and addicting millions of children to their platforms, damaging their mental health.

TikTok could not immediately be reached for comment on the allegations.

The company has previously said it took issues that were linked to children’s mental health seriously. CEO Shou Zi Chew this year told U.S. lawmakers the company has invested in measures to protect young people who use the app.
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