Data marketplace: transparency and security are top priorities

Ensuring transparency and security are top priorities in the formation of a data marketplace, experts have said.

The Ministry of Public Security has recently proposed a data trading platform to be established in the latest draft version of the amended Law on Data.

According to the proposal, the online platform will be under the supervision of the Ministry of Public Security to facilitate the buying, selling and sharing of data in an appropriate and legal manner.

Data which can be traded on the platform must be non-personal or with explicit consent from the data owners. In addition, the draft stressed that the data must not have impacts on national security, defence and not violate State secrets, public interests or the legitimate rights and interests of agencies, organisations and individuals.

The ministry said that this aims to develop a data exchange network in line with the national strategies of data, digital transformation and development of a digital economy and digital society. The data marketplace will increase connectivity and promote the development of enterprises in data and data management consulting. This is also a platform for solutions to ensure information security, safety and personal data protection.

It is necessary to develop regulations on forms of data ownership and trade, property rights, copyrighted data and making data a type of legally protected asset, the ministry said.

Director of the ministry’s Legal Department and Administrative and Judicial Reform Pham Cong Nguyen said that data is a new resource and must be exploited effectively to promote socio-economic development, while ensuring national security and defence.

Data-related products and services are developing rapidly in the world and are playing an increasingly important role in socio-economic development.

The ministry pointed out that there are 69 laws regulating database, including 33 sets of national databases and 39 sets of specialised databases.

However, the existing regulations in Vietnam have not fully and consistently regulated data exchange, data intermediary services, data analysis services to create a legal framework for the formation of a market, he added.

Under the draft, data exchange is defined as an online platform that creates data trading environment with supervision to ensure security and compliance with regulations and promotes the development of data services such as data aggregation, analysis and labelling.

The operational framework of the exchange must be transparent, outlining the responsibilities of all related parties, clarify transaction procedures, ensure information privacy, prevent frauds, manage risks and resolve conflicts.

A data marketplace is expected to create a breakthrough in establishing a data market, increase competitiveness and accelerate the digital transformation process, he stressed.

The platform would also encourage organisations and enterprises to invest in data-driven products and services, improve economic efficiency through data while citizens have opportunities to access, select and use data – related products and services comprehensively.

The Ministry of Industry and Trade said that it is necessary to clarify what data fields are allowed to be traded on the platform together with responsibilities of related parties.

Regarding the proposal that only State-owned enterprises and public service units are allowed to provide data on the platform, the Ministry of Justice said that provision should be considered to be a business line with prerequisites, instead, adding that organisations and individuals should be allowed to participate in providing data if they meet the prerequisites.

Vu Van Bien, Director of An Phuoc Law Firm, said that the draft law is expected to create a favourable legal framework for the formation and development of a data market in Vietnam, opening opportunities for enterprises, ensuring legitimate rights and interests of related parties in its use.

The draft law would also be a key for enterprises to enhance competitiveness and consolidate the positions in the information, technology and data industries.

“Personally, I agree with the Ministry of Public Security’s proposal to establish a data trading platform. When the amended Law on Data is passed, it will be a bold step forward in the digital age to open up a data trading environment in which the buying, selling and sharing of data are protected by law to ensure security and transparency,” said Kieu Tung Linh, an expert in IT.

However, the issue of concern is how to ensure privacy and the use of personal data for public purposes, he said.

According to the national data strategy, Vietnam will complete the pilot of five data trading platforms by 2030.

This is a part of a broader effort to form a data market in which transactions are carried out with security and compliance with the established regulations, to create more job opportunities and data-driven exports.

The draft Law on Data, which has seven chapters and 65 articles, is scheduled to be discussed at the National Assembly’s meeting in October./.