Currently there is a lack of infrastructure in some ministries to support essential information technology systems, leading to disparate databases with issues of standardization and uniformity.

The existing data centers suffer from inadequate investment synchronization, non-compliance with standards and insufficient security measures.

Police taking a picture of a woman for her ID card.

To mitigate these challenges, proposed regulations aim to establish a national data center that will serve as a central repository for data and systems, fostering interconnectivity among various databases and information systems.

The Ministry of Public Security is actively working towards the completion and operation of the first national data center in Hoa Lac (Hanoi) by the end of 2025, aligning with the timelines set in Resolution No.175/NQ-CP and the effective date of the Data Law on January 1, 2026.

The Ministry of Public Security's impact policy assessment report highlights that the construction of the national data center will lead to reduced investment costs for the state in digital transformation infrastructure and resources.

This initiative ensures streamlined management and expertise for nationwide activities such as data collection, storage, management, exploitation, use and sharing. Additionally, the state benefits from cost savings in administering information systems outside the state database of political and socio-political organizations.

Organizations, businesses, and individuals are expected to register and use services from the government-provided national data center infrastructure and cloud computing services. This move not only reduces investment resources but also addresses concerns related to data leakage.

The Ministry of Public Security estimates significant cost savings for ministries, departments, and localities in data collection and cleaning related to the population. Utilizing information available in the national population database is projected to save substantial amounts, with examples including around VND 573 billion (USD 23.2 million) for the first data collection and over VND 5 trillion (USD 202 million) for data cleaning costs.

Furthermore, units currently renting space for data infrastructure at a considerable annual cost could benefit from relocating to the national data center. This transition not only ensures the highest level of security and safety but also allows the state to reduce approximately 20% of total costs by minimizing expenses related to renting premises, operating costs and business profits.

The Ministry of Public Security is also seeking input from agencies, organizations, and individuals for the draft Data Law.

In recent years, legal provisions related to data have demonstrated the commitment and leadership focus of the National Assembly, the Government, and other entities to establish a legal framework, contributing to Vietnam’s rapid data development.

Despite 69 laws regulating databases, the current legal framework is deemed incomplete, lacking unified standards, consistent connection mechanisms, and efficient deployment of national databases.

The proposal aims to build the Data Law, addressing key areas such as building, developing, processing, and managing data, applying technology in data processing, regulations on the national consolidated database, the national data center, and related products and services.

The Data Law is intended to enhance Vietnam’s digital government, digital economy, and digital society, ensuring security, safety, and effective support for the Fourth Industrial Revolution. The Ministry suggests the Government review and align other relevant laws with the provisions of the Data Law.

Source: VNA