"Fundamental freedoms apply online just as they do offline," the US statement said, adding it could cramp the growth of the communist nation's "budding IT sector" by deterring innovation and foreign investment.
The decree, which comes into force in September, also bans internet service providers from "providing information that is against Vietnam, undermining national security, social order and national unity".
The decree has been widely condemned by watchdogs including the Committee to Protect Journalists and Reporters Without Borders.
Vietnam's official Nhan Dan newspaper on Tuesday dismissed criticism of the decree as "defamation and distortion".
In Vietnam, some people have "turned personal blogs and Facebook into places to disseminate incorrect views, attack the party and state and organise opposition", it said.
Vietnam, branded an "enemy of the Internet" by Reporters Without Borders, bans private media and all newspapers and television channels are state-run.
Many citizens prefer to use social media and blogs to get their information rather than the official press.
But the authoritarian government has repeatedly attempted to stifle growing online debate.
So far this year 46 activists have been convicted of anti-state activity and sentenced to often lengthy jail terms under what rights groups say are vaguely defined articles of the penal code.
- AFP