As organizations increasingly operate across cloud platforms and interconnected digital ecosystems, managing data localization requirements is no longer solely a legal exercise, but a critical element of effective data governance. This article examines Vietnam’s regulatory framework under the Cybersecurity Law 2025 and applicable regulations, delineating its scope for domestic and cross-border service providers. By distinguishing localization from data residency and sovereignty alongside statutory retention thresholds, it helps enterprises translate compliance obligations into resilient operational practices.