Abstract
The concept of the “Brussels Effect” refers to the European Union’s capacity to project its regulatory standards beyond its borders and shape global market practices. In this context, the General Data Protection Regulation (GDPR) has transformed privacy compliance from a domestic legal obligation into a de facto condition for accessing European markets. For the software and IT outsourcing industry, this regulatory influence not only generates compliance and adaptation costs but also reconfigures sources of competitive advantage, as the ability to demonstrate transparent and reliable data governance has become an increasingly valuable commercial asset. This study examines how developing countries adapt to European data protection standards by analysing the response strategies of the IT outsourcing sectors in India and the Philippines. Drawing on these cases, the paper derives policy implications for Vietnam, arguing that regulatory alignment with the EU can serve as a strategic instrument for strengthening Vietnam’s position in the global digital supply chain and maximizing the opportunities created by the EU–Vietnam Free Trade Agreement.
