Improving the law related to information technology to meet development requirements in the new situation

Dr. Le Quang Huy
Deputy Chairman of the National Assembly’s Committee for Science -Technology and Environment
Monday, August 31, 2020 02:20

From early on,the Party and the State of Vietnam always attach great importance to promote the application and development of science and technology, especially thenew and spearhead technologies. This demonstrates great thoughts and foresight in leadership thinking, inbuilding and developing the country. However, further legal improvements should be made so that information technology can satisfy development requirements in the new context.

Photo: moj.gov.vn

Some results of information technology application and development in Vietnam

From the early years of the country's renovation, the policy of promoting the application and development of electronics, informatics and later information technology (IT)has been reflected in many Party documents. The Party's groundbreaking awareness of the role of IT and its important directions in IT application and development began to be clearly shown in the Directive No. 58-CT/TW dated October 17, 2000 of the Politburoon reinforcing the application and development of IT for the cause of industrialization and modernization. Inherited from some of the major ideas of this document, the Politburo issued Resolution No. 36-NQ/TW dated July 1, 2014, on accelerating the application and development of IT to meet the requirements of sustainable development and international integration. To institutionalize and implement the Party's guidelines on IT, the National Assembly has amended, supplemented and improved the legal system; the Government has issued many strategies, resolutions, decrees, decisions, plans, projects, programs, etc.Regulatory documents to instruct and guide the  implementation were also synchronously issued by ministries, departments, sectors and localities. Basically, the system of policies and laws on IT has been improved synchronously and effectively, creating the necessary legal framework for public managers to make IT one of the important driving forces for the development of the knowledge-based economy and information society and improve national competitiveness in the process of international integration, and also promote industrialization and modernization, ensure a rapid and sustainable development of the country.

According to the United Nations’ evaluation report, over the past 10 years, Vietnam's e-government development index and online public service index have been on the increase. In 2018, Vietnam was listed in a group of countries with high e-government development index.

Regarding IT application, application infrastructure in public agencies, such as computers, intranets, wide area networks, Internet connections, websites/web portals have been invested, set up and operated. More and more online public services at level 3 and 4 are deployed. A great number of  enterprises are proactive and active in applying IT in their production, business and management activities andthus, theyrealize that IT is one of the solutions helping them enhance their labor productivity and competitiveness. The growth rate of e-commerce in recent years has been estimated at over 25%, especially in the field of online retail, online marketing, onlinepayment, online travel booking with an annual revenue growth from35% to 200%.

Telecommunication and internet infrastructure has been growing faster and wider, accessing to the latest technologies, creating the foundation for IT application in people's daily lives as well as in the fields of economy, society, security and national defense. The 2G, 3G and 4G mobile coverage reaches 99.5% of the population. The number of internet users in 2018 was estimated at more than 64 million, accounting for 67% of the population. Recently, three major GMS network operators  have been licensed to test the new generation 5G mobile network. Many agencies, organizations and departments have built internal institutions, strengthenedspecialized departments, established systems and technical plans to ensure the safety and security for their databases, information systems and IT applications.

With the contributions of large technology corporations in the world over the years,the IT industry, especially the hardware and electronics industry, has strongly developed and increased export value, making an important contribution to the country's economic growth. Currently, there are more than 50,000 enterprises operating in the field of IT. The average turnover of IT enterprises has increased more than 20% per year over the past 10 years, of which increasedover 40% during the period 2009 - 2016. In Vietnam, there are nearly 100 universities and colleges currently conducting IT training programs. Every year, about 50,000 IT students graduate and about 1/3 of them immediately meet working requirements of labor market.

In recent years, world science and technology have beenmaking great progress. Innovation and knowledge continue to become important driving forces and resources for each nation's socio-economic development process. Especially, the Fourth Industrial Revolution which is taking place will change fundamentally production methods, production forces, as well as mindsets, lifestyles, working styles, communication methods ... Regarding the IT field during the Fourth Industrial Revolution, there are 4 core technology groups: 1- Big-data storage and processing, which is highly complex and difficult to manage bytraditional technologies; 2- Internet-of-things, in which physical objects can connect and communicate with each other via Internet network; 3- Artificial intelligence, which is a simulation of human intelligence in machines that are programmed to think like humans and mimic their actionsthrough collecting and using information, then reasoning and infering final results from data and knowledge extracted from data; 4- Mobile, blockchain and cloud computingtechnologies.

It must be emphasized that digital technology, digital data and data usage are decisive in the new trend. Despite differences in approach and level of development, the revolutionary wave of manufacturing industry combined with information technology is having a profound and powerful impact on the economic structure and model, the operations of enterprises, thepublic managementsystem of many countries as well as the life of each citizen.

Issues raised for the improvement of laws related to IT

New business models: The sharing economy has appearedin the world for a long time. This is an economic system with the principle of sharing and cooperating on the basis of technology, especiallyInternet. The sharing economy contributes to redistribute social resources that has not been used effectively. Instead of owning, consumers will find redundant resources shared in the community and use them more effectively. Electronic contract vehicles (technological taxis), whichare allowed to be piloted in 2017 in 4 provinces and cities by using the idle cars, are models of the sharing economy. Similarly, present in Vietnam since 2014, Airbnb has grown rapidly, providing an online trading platform for individuals, families and tourists wanting to rent or rent out rooms, apartments and houses.

Virtual currency: "Virtual currency" can be understood as a digital representation of the value that can be included in digital transactions and has some functions, such as a mean of payment or exchange; a unit of account; and a store of value. Cryptocurrencies use encryption technology to control the creation and trading of coins on a digital space. Currently, there are about 800 types of cryptocurrencies in circulation in the world, in which bitcoins and ethereum are the 2 cryptocurrencies having the highest market capitalization.

For bitcoins, each transaction activity will be authenticated and publicly recorded in accouting books and decentralized through blockchain technology. In June 2019, the Libra Association - an association of large companies, announced the project to launch a new virtual currency, Libra. It is worth noting that members of the Libra Association have international payment card organizations, such as Mastercard and Visa, with the biggest advantage of virtual money that is its high liquidity and low transaction costs because its process of transaction is conducteddirectly on electronic devices, in-touch mobiles and Internetwithout any intermediaries. In addition, cryptocurrencies are highly portable, can be transfered quickly to almost anywhere and at any time. Recently in Vietnam, the virtual currency boomed echoes. various trading activities under multi-level business modelsemerged, attractingmany people to invest millions of dollarsto equip the "bitcoin" mining computer system as a leading profitable investment channel. A number of virtual currency projects, after raising capital by calling for virtual currencies investment, have failed and the currency is no longer valid for internationaltransactions. Many victims who invested huge amounts of moneyfailed, causingserious economic and social consequences. Hundreds of thousands of computers were hijacked by malicious code of “digging” virtual money. This virus spreads through advertising services and software vulnerabilities, which specialized in appropriating the central processing unit (CPU) and random access memory (RAM) of the computer.

Virtual assets: "Virtual assets" here are understood as resources on cyberspace, which are determined in cash and can be transferred in civil transactions. Virtual assets can be domain names (Internet domain), email addresses, online game accounts... but the most common virtual assets are domain names and online game accounts. These "assets" can be bought and sold with money, and in many cases, the transaction value is sorely significant. In Vietnam, there has been a business operating in the field of information technology spent more than 2 billion VNDto acquire domain names associated with its brands. Another example is a virtual goods trader has spent nearly 2 billion VND to buy 2 online game accounts. Despite the lack of government approval, the tradingof virtual assets is still taking place in Vietnam.

Considering the aforementioned practical situations, it can be seen thatin general, the legal system including information technologylaws still hasinadequacies. In fact, the current laws and regulations related to IT are incomplete and not specific enough to meet the requirements of trading activities in the sharing economy. From the above example, we can see the lack of a clearly legal framework defining the technology platform providers asmerely providingsoftware without directly providing services (such as operating vehicles, not hiring drivers, not providing hotels and motels ...) or as providers of both technology platforms and service (such as deciding rates and prices, directly operating vehicles, hiring drivers, accommodation fees and charges ...). As a result, it causes difficulties, limitations and embarrassments in management, such as unfair competition or difficulty in ensuring social order and safety, legitimate rights and interests of customers. Consequently, a series of other legal issues are involved when conducting transactions, such as tax obligations, electronic payments, security of information and personal data ...

In addition, the law related to IT has not fully regulated the transaction relations arising in practice. According to the current law on e-transactions, only e-commerce websites with Vietnamese domain names (.vn) must declare and provide online information to functional agencies for management purpose. Therefore, many businesses providing Internet-based platforms and doing online business, but not having Vietnamese domain names, are unmanageablebecause they are not subjects to the application scope.

Another aspect is the issue of identity and identity authentication on cyberspace. In electronic transactions, most of the involved parties do not meet directly. They use only information technology equipment and the Internet environment to make transactions. Currently, quite a lot of ITsoftware applications for transactions and e-commerce still use only mobile phone numbers, email accounts, and passwords of participants to verify. In fact, it is not enough to ensure the accuracy of the parties' identifications, leading to many risks. Legal provisions on the collection and evaluation of electronic evidence for criminal investigation related to IT face many challenges.

To date, the current law stipulated detailed regulations on the management, provision and use of online video game services, including virtual items, virtual units and bonus points in the online game. However, these are only general provisions on rights and obligations of service providers and players without acknowledging and protecting theirvirtual assets.

Increasing application of the achievements of artificial intelligence also raises many problems from a legal perspective. If the new products are not researched and created by humans but are the result of software applications with intelligence like humans, how is the protection of intellectual property rights, such as personality rights and property rights of authors determined? With 3D printing technology, only with the digitized data of the product, any 3D printer can "print" (manufacture) that product. However, if the product is protected by intellectual property rights, is the scope of protection applicable to the digitized data of that product? In addition, as artificial intelligence develops and is more and more widely applied, the concept of crime, sanctions,procedures, andcriminal execution systems... will also change. That is not to mention the situation when the evolution of artificial intelligence softwares can, to some extent, be beyond humancontrol.

Obviously, through some practical situations, it can be found that the legal system in general and the law related to IT in particular are still inconsistent, incomplete, inaccurate, inadequate and not keeping up with the development of digital transformation process; thus, it should be reviewed, researched and improved.

Solutions for improving laws related to IT

Firstly, renewing legal thinking

According to current regulations, issuing legal documents often requires several processes and procedures, which take a lot of time. In the new context, when the law is enacted, the relationships that need to be adjusted by law have changed and advocated for development in a different direction, which always leads to thebackwardness of law. Therefore, legislative thinking needs to meet the requirements of innovation in a way that it is not passive and improvident. Instead, it needs to keep up with reality, tobe proactive, and orient social relations. It is necessary to promote the application of IT to improve the quality and efficiency of formulating and enforcing policies and laws (codifying and detecting potential conflicts and overlaps in the legal system). Applying experimental mechanisms in limited scope (sandbox), andextending the case law are examples of changing legal thinking in the new context that some countries have studied and implemented. In fact, there are many emerging issues that we can not predict properly its impacts, so it is necessary to research and apply testing mechanisms for new legal institutions in limited scope in each field, with limited space and time ... to analyze and evaluate the results and to decide which ones to be put into law. In the new context, determining the legal nature of the problem at  judicial institutions is not easy because the current law has not kept up with reality and it is difficult to determine which law is applicable to solve a problem. Therefore, the application of case law in court will become more frequent.

Secondly, ensuring the consistency and uniformity of the legal system

Not only thelaws specialized in IT but institutions in other fields also need to be studied, reviewed and improved to ensure the consistency and uniformity, avoid overlap and conflict in legal system. Especially, laws on following issues need to be improved: 1- protection of human rights, freedom and democracy, property rights and privacy of citizens, protection of personal information, data, identification and authentication; 2- Contract of electronic transaction; 3- Intellectual property; 4- Investment, finance and banking, currency and tax; 5- Criminal lawand criminal procedure; 6- Social security and labor; and 7- Public services.

Thirdly, improvingthe legal system directly related to IT

- Laws related to digital data: Using digital knowledge and digital data wisely are the key factors determining the success of each country in the new situation. Accordingly, it is necessary to improve the legal regulations on building, updating, connecting, sharing digital data stores, analyzing them and using them in all economic and social activities, solvingproblems posed in each industry and each field. Digital content and information in the public sector are important resources that need to be stipulated to regulate their access and sharing. Database will help public managers to well manage and businesses and the private sector to research, tomakeplans, toimplement production and business strategies, and iteven allows the private sector to participate in building and maintaining these databases. National databases, including those of citizens, needs to be completed quickly and put into operation.

- Law on network safety and security: Connecting and sharing digital data is a characteristic of the new trend. Therefore, it is essential to improve the laws on identification, authentication and mechanisms to ensure personalprivacy, information and data, as well as security and safety in the network environment. In the immediate future, it is necessary to build a legal corridor on electronic identification and secure authentication methods when participating in e-commerce; promote and encourage the development and wide application of digital signatures and authentication certificates; specify the legal validity of electronic and digital documents.

- Laws on connecting infrastructure: Telecommunications and Internet are connecting infrastructure that play a key role in the digital economy. Legislation in this area needs to be improved in the direction of encouraging and promoting the expansion of the scope of broadband connection infrastructure with high quality and appropriate nationwide charges; frequently planning and effectively applying 5G generation mobile telecommunications networks. Regulations on infrastructure connecting people and technological equipment, payment infrastructure in electronic transactions also need to be clearly studied and regulated.

- Law on training and perfecting human resources: The trend of linking and converging information technology with other industries, such as biology, physics, economics, commerce, law ... is becoming obvious. Facing the rapid change of technology, many stages in industries, andeven some industries, are facing the risk of being replaced by machines or having to change substantially. However, the reality shows that the "soft" skills, social skills, theskills to handle complex situations ... of employees are difficult to beautomated and replaced by machines. Therefore, the law on training and perfectiong human resources in the digital transformation period must meet the requirements in term of  updating and diversifying labors’ skills and knowledge.

- Lawson information technology: The more deeply the information technology penetrates into the economic, social and daily life of individuals, the tighter andmore specialized the information technology legislation should be  kept up with the development of technologyand the requirements of practice. Regarding cyber safety and security, it is possible to research and develop laws that govern sorelyspecific issues, such as protection of personal information, data and privacy; or electronic signature use. In the judicial activity, it is possible to study and formulate laws on electronic evidence. Regarding the field of public management, it is possible to study and formulate laws on e-government, public information ... These are practical experiences in some countries that Vietnam needs to study and learn./.