Data localization rules will set back Vietnam's digital economy

Requirements for in-country storage can actually increase security risks

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A man uses a tablet in a coffee shop in Hanoi: Data localization requirements can increase cybersecurity vulnerabilities. © Reuters

Jeff Paine is managing director of the Asia Internet Coalition, an industry association focused on regional internet policy issues.

Laws and regulations requiring companies to store data locally have multiplied around Southeast Asia over the past decade despite the risk of unintended consequences, including higher business costs, increased cybersecurity hazards, stunted innovation and reduced growth in digital economic activity.

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