Viet Nam has many opportunities to develop a digital economy, but the country’s legal framework on cross-border data flows is still "unopened", according to the Asia Cloud Computing Association (ACCA).

The Central Institute for Economic Management (CIEM) and ACCA jointly organised a workshop on cross-border data flows to improve the framework for digital economic development on Thursday.

Lim May Ann, ACCA executive director, announced the report "Cross-border data flow: A review of the regulatory enablers, blockers and key sectoral opportunities in five Asian economies: India, Indonesia, Japan, the Philippines and Viet Nam" at the meeting.

The report provides an overview of the legal status of data management in the five economies and its impact on economic development in general and small- and medium-sized enterprise development in particular.

Mai Liem Truc, former deputy minister of Post and Telecommunications, said Vietnamese telecommunications and internet in the past 20 years has grown equivalently to countries in the region and the world in terms of services.

Viet Nam is also a country with high rate of internet users, more than 50 per cent of its population.

“That created a big impact on the digital economy in Viet Nam,” he said.

However, the ACCA representative said regulatory requirements could pose challenges for cross-border data service providers, leaving them to consider entering the Vietnamese market.

In addition, it may affect businesses wishing to use the tools and services provided by cross-border data and cloud computing service providers, which play an important role in the development of digital businesses in Viet Nam.

Lim May Ann said the Vietnamese government should take a cautious approach to ensuring the development of a cyber security environment does not inadvertently limit and inhibit the growth of the potential of digital economy in particular and Vietnamese economy in general.

Truong Dinh Tuyen, former Minister of Trade, said policies should serve the development of digital economy and not to be introduced to obstruct its development. — VNS