What Should Businesses Do to Comply with Legal Principles When Processing Personal Data?

With the enforcement of Decree 13/2023/NĐ-CP on Personal Data Protection, adhering to the legal principles of data processing has become a mandatory requirement for all businesses operating in Vietnam. These principles ensure that all activities involving personal data are based on clear legal grounds, protect data subjects’ rights, and minimize legal risks for businesses.

What Are the Legal Principles in Personal Data Processing?

According to Articles 3 and 11 of Decree 13/2023/NĐ-CP, businesses can only process personal data if they have a valid legal basis. These legal grounds include explicit consent from data subjects or specific cases permitted by law, such as:
✔ Protecting an individual’s life or health
✔ Fulfilling legal obligations
✔ Serving public interest

Steps Businesses Must Take to Ensure Compliance with Legal Principles

1. Identify the Legal Basis Before Collecting Data

Before collecting and processing personal data, businesses must determine a valid legal basis. This could be explicit consent from the data subject or other grounds as stipulated by law.

🔹 Example: A company wishing to collect customer information for marketing emails must obtain clear consent from customers.

2. Ensure Transparency in Data Collection

Businesses must inform data subjects clearly about the purpose, scope, and methods of data processing. This helps data subjects make informed decisions about sharing their personal data.

3. Limit Data Usage to the Stated Purpose

Personal data must only be used for the stated purpose that was communicated and agreed upon. If businesses need to use the data for other purposes, they must obtain new legal grounds or additional consent.

4. Implement Proper Security Measures

Companies must apply technical and administrative security measures to protect personal data from unauthorized access, disclosure, modification, or destruction. These measures may include data encryption, access control, and employee training on data security.

5. Maintain Compliance Records

Keeping detailed records of all personal data processing activities is crucial. This allows businesses to demonstrate compliance when requested by authorities and helps in effective data management.

Consequences of Non-Compliance with Legal Principles

Failing to comply with legal data processing principles can result in serious consequences, including:

🚨 Legal Sanctions: Businesses may face fines, operational suspension, or other penalties.
🚨 Loss of Reputation: A data protection failure can erode customer trust and damage brand reputation.
🚨 Financial Losses: Besides fines, businesses may have to compensate affected data subjects.

Conclusion

Complying with legal principles in personal data processing is not only a legal obligation but also a crucial factor in building trust with customers and partners. Adhering to data protection regulations helps businesses mitigate risks, enhance credibility, and achieve sustainable growth.

VDPC DATA PROTECTION – Your Trusted Partner in Personal Data Protection

As data protection regulations become stricter, VDPC DATA PROTECTION is a leading expert in helping businesses comply with Decree 13/2023/NĐ-CP and related regulations. We provide:

✅ Legal consulting on personal data protection compliance
✅ Data security policy development aligned with international standards
✅ Data breach management and compliance support
✅ Employee training on data security best practices

📍 Head Office: No. 7, Alley 1, Tu Hiep Street, Thanh Tri, Hanoi
🌐 Website: https://vdpc.vn
📞 Hotline: +8498 159 5243

💡 Don’t put your business at risk! Contact us today to ensure compliance and protect your company’s future.