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Asia Pacific: Vietnam to Propose Updates to Regulations On Civil Encryption Products

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The National Agency of Cryptography and Information Security (NACIS) is currently drafting a new Decree to amend Decree No. 58/2016/ND-CP and its amendments related to cyber information security, including the export/import of civil encryption products (referred to as the “Draft Decree”).

The Draft Decree expands the scope of products subject to this regulation and imposes significantly greater monetary fines and penalties for non-compliance which will certainly result in higher scrutiny moving forward.

The proposed administrative reforms in the Draft Decree includes the following key points:

  1. Simplified Application Process:
    • The Draft Decree eliminates the requirement for applicants to submit education and professional certifications of management, operation, and technical staff.
    • Additionally, the submission of copies of the Enterprise Registration Certificate, Investment Registration Certificate, or Conformity Certificate (Type Approval Certificate) is no longer necessary.
  2. Conformity Certification:
    • A new section on Conformity Certification is introduced.
    • Notably, the NACIS may accept testing results from foreign laboratories. However, the Draft Decree does not provide specific rules or procedures for recognizing foreign labs.
  3. Monetary Fines and Penalties:
    • The maximum monetary fine is set at VND 200 million, which is four times the threshold in Decree No. 58/2016/ND-CP.
    • Additional penalties and remedial measures, such as the forcible confiscation of products, are also outlined.
  4. Business License and Export/Import Permit:
    • The Draft Decree maintains the existing structure for listing products subject to Business License and Export/Import Permit.
    • Notably, the scope of exempted products is expanded, but it remains unclear whether the exemption from Business License also applies to the Export/Import Permit.

Please note that these provisions are still in draft form and subject to potential changes before their effective date. If you have any further questions or need additional details, feel free to contact us:

Manh-Hung Tran (Partner, BMVN in alliance with Baker McKenzie): tmh@bmvn.com.vn Ngoc Trung Tran (Senior Trade Advisor, BMVN in alliance with Baker McKenzie): ngoctrung.tran@bmvn.com.vn

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Author

Hung Tran is the practice group leader of the Intellectual Property (IP) and Technology Practice Groups of Vietnam offices. For years, he has been constantly ranked as a leading IP lawyer by numerous researchers such as Chambers Global and Chambers Asia. He regularly writes articles concerning pressing legal issues in both English and Vietnamese, and his works have been published regularly in various reputable publications. He has assisted the government in reviewing and revising the IP Law, the IP provisions under the country’s criminal code, the draft e-Transaction Law, and the first draft Personal Data Protection Decree, etc. He is also a respected presenter in the area of IP, Franchising, Data Privacy, and Entertainment Laws. In addition to authoring many publications, Mr. Tran has lectured at Waseda University School of Law (Japan), Vietnam-German University, Hanoi Law University, Diplomatic Academy of Vietnam, Foreign Trade University, an international MBA Program (CFVG) and IP laws for the Professional Training School of the Ministry of Industry and Trade. He used to serve as the Chairman of the Legal Committee of Hanoi American Chamber of Commerce.

Author

Ngoc Trung Tran is a senior regulatory advisor in our tax practice, specialising in international trade, customs and tax services. Ngoc Trung focuses particularly on international trade and compliance including transactional documentation, advising on accessing to Vietnamese market in aspects of tax, customs, technical barriers, and international commitments. He also has experience advising clients on customs and tax issues (Import Duty, VAT, SCT) for exports and imports of various categories, including administrative complaints, litigations, day-to-day business advice, trade remedies, including AD/CVD investigations, safeguard, etc. as well as transfer pricing and tax treaty exemption. As a former senior government official, Ngoc Trung has assisted clients in various advocacy works in customs and tax issues.

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