Decree 13/2023/ND-CP: What businesses need to do to comply with Personal Data Protection

Decree 13/2023/ND-CP on personal data protection establishes a critical framework for safeguarding privacy in the digital era. Effective from July 1, 2023, this decree applies to all organizations and businesses that collect and process personal data. This article outlines the decree’s key provisions and provides practical guidance for achieving compliance.

1. What is Decree 13?

Decree 13/2023/ND-CP, comprising 44 articles, is Vietnam’s first comprehensive legal framework governing personal data protection. It defines key concepts, principles, rights, and obligations for organizations and individuals involved in collecting, processing, and sharing personal information.

As per Article 2, Clause 1, personal data refers to any information that can identify an individual, including basic data (name, date of birth, ID number, address, email) and sensitive data such as health records, political views, sexual orientation, religion, financial details, or geolocation.

2. Key highlights for businesses

To comply with Decree 13 and mitigate legal risks, businesses must understand its core components, from the definition of sensitive data to user consent mechanisms and associated responsibilities and penalties. Below are the critical points businesses should prioritize.

2.1. Classification of personal and sensitive data

Sensitive data includes information that, if exposed, could significantly impact an individual’s privacy, reputation, or finances. The decree mandates heightened security measures for such data, including encryption, restricted access, and processing only with explicit user consent.

2.2. User consent requirements

Businesses may only collect and process personal data with user consent, except in five specific cases:

Necessary to protect human life or health in emergencies.
Required for state agency operations as per legal provisions.
Fulfilling contractual obligations with the data subject.
Supporting national defense, security, social order, or crime prevention.
When data has been legally disclosed.

Consent must be explicit, revocable at any time, and documented for verification purposes.

2.3. Business responsibilities

All entities processing personal data must demonstrate compliance with Decree 13, including:

Clearly notifying users about the purpose and scope of data processing.
Collecting only necessary data to avoid misuse.
Designating a data protection officer (DPO) or dedicated team.
Maintaining records of data processing activities and reporting to the Ministry of Public Security when required.

2.4. Penalties for non-compliance

Violations of personal data protection regulations may result in administrative, disciplinary, or criminal penalties, depending on severity. These include:

Fines, license revocation, or service suspension.
Criminal prosecution for violations causing significant harm.

This underscores that personal data protection is no longer optional but a mandatory legal obligation.

nghi-dinh-13-2023-nd-cp (2).jpg — Businesses must strictly comply with personal data protection regulations.

3. Impact of Decree 13 on businesses

Adopting Decree 13/2023/ND-CP requires businesses to implement comprehensive security strategies encompassing both technical and governance measures. Common challenges include:

Legal risks: Non-compliance may lead to hefty fines and reputational damage.
Investment costs: Upgrading software, encrypting data, and implementing access management systems require resources.
Internal training: Employees must be educated on data protection protocols and incident response.

However, compliance also presents an opportunity to build customer trust by demonstrating a strong commitment to protecting personal information.

4. Technical measures for Data Protection

Decree 13 mandates that businesses implement technical and managerial safeguards to protect data throughout its lifecycle, including:

Data encryption and anonymization to minimize unauthorized access risks.
Multi-factor authentication and access controls to restrict sensitive data to authorized personnel.
Secure data storage using reliable servers or high-security cloud services.
Regular data backups and recovery plans to ensure operational continuity during incidents.
Continuous monitoring and early detection of cyber threats.

5. Technology solutions to support compliance with Decree 13

To meet stringent security requirements, businesses should leverage advanced technology solutions to comprehensively protect personal data. VNETWORK offers a suite of cutting-edge services to help businesses safeguard data and comply with Decree 13/2023/ND-CP.

nghi-dinh-13-2023-nd-cp (3).jpg — VNETWORK's comprehensive technology solutions help businesses protect data and comply with Decree 13/2023/ND-CP.

Below are key offerings:

5.1. VNIS - Web/App/API Protection

VNIS provides real-time detection and prevention of cyberattacks, including DDoS, SQL Injection, XSS, and malicious bots. This robust solution ensures the security of websites, applications, and APIs, protecting user personal data from unauthorized access.

5.2. EG-Platform - AI-Powered Email Security

The EG-Platform leverages machine learning and AI to detect spam, phishing, and malware. Aligned with the ITU-T X.1236 international standard, this solution secures email communication, a common vulnerability in cybersecurity, preventing data leaks.

5.3. VNCDN - Secure Content Delivery Network

As a leading CDN provider in Asia, VNCDN accelerates content delivery while integrating DDoS protection at Layers 3 and 4 and SSL encryption. This solution is ideal for businesses seeking to secure customer data during online transmission.

5.4. VCLOUD - Secure and Dedicated Cloud Infrastructure

VCLOUD offers a dedicated, flexible cloud server infrastructure that complies with Vietnam’s data residency requirements under Decree 13. With encrypted data, regular backups, and continuous monitoring, VCLOUD ensures businesses can confidently meet regulatory standards.

Conclusion

Decree 13/2023/ND-CP is a pivotal step toward aligning Vietnam with global data protection standards, such as the EU’s GDPR. As digital transformation accelerates, businesses must proactively invest in cybersecurity solutions and secure infrastructure to protect personal data, maintain trust, and enhance competitiveness.

FAQ - Understanding Decree 13/2023/ND-CP

1. Does Decree 13/2023/ND-CP apply to foreign businesses?

Yes. All organizations and individuals processing personal data in Vietnam, including foreign businesses operating in the country, must comply.

2. What constitutes sensitive personal data?

Sensitive data includes health, financial, political, religious, sexual orientation, racial, geolocation, or genetic information.

3. What are the penalties for violating Decree 13?

Violations may lead to administrative fines, service suspension, or criminal prosecution, depending on the severity.

4. What steps should businesses take to comply with Decree 13?

Businesses should establish data protection policies, appoint a DPO, implement encryption and authentication measures, and partner with reliable cybersecurity providers.

5. How does VNETWORK support businesses in protecting personal data?

VNETWORK provides comprehensive cybersecurity solutions, including VNIS for web/app/API protection, EG-Platform for secure email, VNCDN for safe content delivery, and VCLOUD for compliant cloud infrastructure, ensuring full compliance with Decree 13 and robust protection against cyber risks.