Vy Ngo Nguyen Thao

Quyen Nguyen Ngoc Phuong

Lecturers, Faculty of International Law,

Ho Chi Minh City University of Law

The rise of the “data economy” in the 21st century has remarkably transformed the business landscape, especially the ASEAN economy and led to a vast amount of collection and processing of personal data by technology companies. The emergence of security, privacy, and human rights concerns has necessitated the development of regulatory solutions, especially under the light of international investment law. Host states are obligated to facilitate the free flow of digital trade and investment, which can create tensions with domestic laws aimed at protecting citizens' rights and national security. When offshore companies challenge more stringent regulatory changes regarding personal data protection or data localization requirements, legal issues may arise. A key question in this regard is whether the data collected by such companies should be deemed an investment and therefore, protected under international investment treaties. Additionally, while data processing and analysis may yield significant benefits for organizations, it is important to recognize that the data subject retains ownership of their data. As such, there may be concerns that treating collected personal data as the private property of businesses could undermine the data subject's right to informational privacy. This conflict further necessitates a resolution for the harmonization of interest between the host state and foreign investors to ensure the development of a sustainable business environment. Given Vietnam's significant number of signed and implemented treaties and the increasing expansion of data-driven businesses in Viet Nam, this paper aims to examine the tension between Viet Nam’s data protection laws and international investment agreements (IIAs).

By shedding light on these complex issues using approaches to the definition of investment in IIAs as a covered investment and data privacy doctrines, this paper aims to contribute to a better understanding of the interplay between data protection and international investment law. Through this research, the authors aspire to clarify the boundaries between privacy protection and economic facilitation in Vietnam, with the ultimate goal of promoting the country as an attractive destination for foreign investment.

Keywords: international investment agreements, privacy rights, data protection, host state, cyber security, data localization.