How does a data collection policy affect businesses?

A data collection policy is a main factor enabling businesses to manage customer information securely, comply with legal requirements, and minimize risks. The following article provides an in-depth analysis of its contents, applicable data types, methods for amending the policy, and relevant legal regulations, while also addressing frequently asked questions.

I. The impact of data collection policies on businesses

A data collection policy directly affects how a business manages customer information, ensures legal compliance, and mitigates data security risks. Establishing a clear policy helps businesses build trust with customers, control data processing procedures, and prevent legal consequences in cases of data misuse or data breaches.

II. Overview of data collection policies

1. What is a data collection policy and why is it important?

A data collection policy is a set of internal regulations issued by a business to govern the collection, storage, processing, and use of personal data of customers or users. It clearly defines the types of data collected, purposes of use, scope of data sharing, and applicable security measures.

Such a policy is important because it:

• Ensures legal compliance: It enables businesses to comply with regulations on personal data protection under the Law on Personal Data Protection 2025 and relevant legal instruments.
• Builds customer trust: Customers feel reassured when their data is processed transparently and securely.
• Reduces legal and financial risks: It helps avoid disputes, administrative sanctions, or compensation claims arising from improper data processing.
• Enhances data management efficiency: It supports businesses in organizing, storing, and using data in a systematic manner to serve business objectives.

Accordingly, a data collection policy is not merely a compliance tool but also a key factor in protecting corporate reputation, strengthening customer trust, and limiting legal risks.

2. What are the main contents of the data collection policy?

The contents of the data collection policy are typically developed in detail to safeguard the rights and interests of both the business and data providers.

Main contents include:

• Purpose of data collection: Explaining why the business collects data and the intended objectives.
• Types of data collected: Listing categories of data, including basic personal data, sensitive data, transaction information, online behavior, etc.
• Methods of data collection: Describing the means and tools used, such as websites, applications, surveys, or customer management systems.
• Use of data: Stating the purposes for which data is used, such as market analysis, service improvement, or communications.
• Rights of data subjects: The right to be informed, to rectify data, to withdraw consent, or to request data deletion.
• Data protection measures: Technical and organizational measures to secure data and prevent unauthorized access or data leakage.
• Data recording period and policy updates: The duration of data storage, procedures for updating or amending the policy, and notification to users when necessary.

Clearly defining these contents helps businesses maintain transparency, comply with the law, and enhance customer trust. 

3. What types of information may a data collection policy apply to?

When developing a data collection policy, businesses must clearly identify the types of information collected to ensure compliance with the Law on Data 2024.

Pursuant to Clauses 1 to 7, Article 3 of the Law on Data 2024, data types and related concepts include digital data, shared data, private data, open data, source data, important data, and core data, specifically:

• Digital data: Data about objects, phenomena, and events, including audio, images, numbers, text, and symbols in digital form.
• Shared data: Data accessed and shared within the Communist Party, State agencies, the Vietnam Fatherland Front, and socio-political organizations.
• Private data: Data used internally within the aforementioned agencies or organizations.
• Open data: Data that any organization or individual may access and use.
• Source data: Data generated in practical activities or digitized from original paper documents.
• Important data: Data affecting national defense, security, foreign affairs, macroeconomic stability, public health, or social stability, as listed by the Prime Minister.
• Core data: Important data that directly impacts the above sensitive areas, as specified by the Prime Minister.

Clearly identifying applicable data types helps businesses ensure legal compliance, transparency in data collection, and reduced legal risks.

4. May a data collection policy be amended over time, and how must changes be notified?

A data collection policy may be amended over time, particularly with respect to personal data, and businesses must provide transparent notification to comply with the law. Article 13 of Decree No. 13/2023/ND-CP provides for notification of personal data processing as follows:

• Notification must be made once prior to data processing and must clearly state the purposes, types of data, processing methods, relevant parties, potential consequences, and processing duration. Notification may be made in printed, copied, or electronic form. Where the data subject has already been informed and consented, or where data is processed by state authorities in accordance with the law, re-notification is not required.
• Timely and clear notification of policy changes helps protect data subjects’ rights and minimize legal risks for businesses.

III. Legal regulations related to data collection policies

Data collection policies are not merely internal management tools but must comply with applicable legal regulations to ensure legality and protect the rights of data subjects.

1. How does Vietnamese law regulate data collection policies?

Data collection policies must be implemented in accordance with Vietnamese law to protect individual rights and ensure information security.

• Law on Personal Data Protection 2025 (Article 3): Organizations and enterprises collecting personal data must ensure transparency, purpose limitation, scope limitation, and data safety and security throughout the processing.
• Decree No. 13/2023/ND-CP (Article 13): Data subjects must be informed of the purposes, data types, processing methods, collection duration, and potential consequences; notification may be in printed, copied, or electronic form.
• Law on Data 2024 (Article 11): Data may be collected from multiple sources, including direct creation or digitization of documents; digitized source data has the same legal value as originals. Collection must comply with archival laws and use originals, authentic copies, or lawful copies. Organizations and individuals have the right and obligation to protect data and are responsible for the data they collect or generate.
• Civil Code 2015 (Articles 122 and 117): Contracts relating to data must be entered into voluntarily, must not violate statutory prohibitions, and must be consistent with social ethics.

Accordingly, data collection policies must be developed and implemented in compliance with current laws, ensuring transparency, security, and avoidance of legal risks.

2. What sanctions may apply for failure to properly implement a data collection policy?

Pursuant to Article 8 of the Law on Personal Data Protection 2025, failure to properly implement a personal data collection policy may result in administrative penalties or criminal liability, depending on the nature, severity, and consequences of the violation.

Administrative sanctions include:

• Trading in personal data: Fines of up to ten times the illegal proceeds.
• Unlawful cross-border transfer of personal data: Fines of up to 5% of the preceding year’s revenue.
• Other violations in the field of data protection: Fines of up to 3 billion VND.

Where both individuals and organizations commit violations, fines imposed on individuals shall be half of those imposed on organizations.

Criminal liability may arise under Article 288 of the Criminal Code 2015 (as amended and supplemented in 2017) if unlawful collection, processing, disclosure, or use of personal data via computer or telecommunications networks constitutes a criminal offense.

Compensation for damages: Where violations cause damage, organizations or individuals must compensate in accordance with Article 548 of the Civil Code 2015.

Therefore, compliance with data collection policies not only protects data subjects’ rights but also helps organizations avoid serious legal and financial liabilities.

3. What risks may an organization face if it lacks a data collection policy?

Under Article 25 of the Law on Data 2024, organizations without a data collection policy face various risks during data processing, including privacy risks, cybersecurity risks, identification and access management risks, and other data-related risks.

Data controllers must conduct self-assessment, identify risks, implement data protection measures, promptly remedy arising risks, and notify data subjects and relevant authorities or organizations. Accordingly, the absence of a data collection policy not only poses risks of legal violations but may also result in financial losses, reputational damage, and infringement of the rights and interests of relevant parties.

IV. Questions regarding data collection policies

During the implementation of data collection policies, organizations and individuals often raise questions concerning rights, responsibilities, and implementation methods. This section clarifies common issues to help businesses and users better understand their rights and obligations.

1. Is customer consent required before implementing a data collection policy?

The collection of personal data requires prior customer consent. Under Clause 1, Article 4 of the Law on Personal Data Protection 2025, data subjects have the right to be informed, to consent or refuse, and to withdraw consent to personal data processing.

This means organizations may only collect and process data after obtaining explicit consent from customers, ensuring lawful implementation and protection of individual privacy.

2. If customers do not consent, may the company continue collecting their data?

If customers do not consent to the data collection policy, the company may not continue collecting their personal data. Pursuant to Article 11 of the Law on Personal Data Protection 2025, personal data may only be collected with the data subject’s consent, except in cases otherwise provided by law, such as where state authorities perform management or socio-economic development functions.

3. What forms of data processing may be included in a data collection policy?

A data collection policy may include various forms of data processing. Under Clause 8, Article 3 of the Law on Data 2024, data processing refers to the receipt, transformation, organization of data, and other related activities. Common forms include:

• Data analysis and aggregation for management, decision-making, or socio-economic development (Article 19).
• Data verification and authentication, with authenticated data having evidentiary value equivalent to source data (Article 20).
• Data disclosure through open or conditional access, ensuring accurate reflection of source data (Article 21).
• Data encryption and decryption to protect confidential or important data (Article 22).
• Cross-border data transfer and processing, ensuring national security and lawful rights of data subjects (Article 23).

Accordingly, a data collection policy governs not only collection but also lawful, secure, and effective data processing.

4. What liabilities does a company take if collected data is not properly protected?

A company takes legal liability if collected data is not protected in accordance with the data collection policy. Under Article 8 of the Law on Personal Data Protection 2024, organizations and individuals may be subject to administrative sanctions, criminal liability, and compensation for damages.

Such liability includes ensuring data security, compensating affected data subjects, and taking administrative or criminal responsibility depending on the severity of violations.

5. What measures should be applied to protect data collected under a data collection policy?

Pursuant to Article 27 of the Law on Data 2024, organizations should implement comprehensive measures, including:

• Developing and implementing data protection policies with clear internal rules and responsibilities.
• Managing data processing activities through monitoring and control mechanisms.
• Applying technical solutions such as cybersecurity measures, encryption, backups, data authentication, and access control.
• Training and managing personnel to raise awareness and reduce human-related risks.
• Implementing other measures as required by law or regulatory guidance.

Thus, data protection involves not only technology but also policies, management, and human resources to ensure lawful and secure data processing.

V. Are you looking for a reputable lawyer to assist with data collection policy issues?

If you are seeking reputable legal counsel regarding data collection policies, NPLaw is a reliable choice, providing support in drafting and reviewing policies, ensuring compliance with the Law on Data 2024 and Decree No. 13/2023/ND-CP, as well as advising on legal risks and handling related disputes.

The above information is for reference purposes only. For detailed advice tailored to specific circumstances, please contact NPLaw Law Firm for consultation.