How Regulation on Telecommunications Changes in Vietnam?

Proportional to Vietnam’s rapid development in various areas of its economy, the telecommunication industry has undergone through rapid development and has become a key economic sector for the country. Legal regulations on telecommunications have also been evolving to support the business practice in Vietnam.

Various regulations on the telecommunication business, for instance the Ordinance of Post and Telecommunication promulgated in 2002 created a legal framework for the telecommunication business in Vietnam and thereby promoting competition, encouraging and supporting the new market entrants.  After sometime, the Vietnamese provisions on telecommunications turned out not always be compatible with the international regulations – especially when Vietnam became an official member of the World Trade Organization (WTO) and thereby had to be in line with the WTO’s international provisions.   On November 23rd, 2009 the National Assembly of Vietnam passed the Law on Telecommunications that came into effect on July 1st, 2010 (“Law on Telecommunications”). The Law on Telecommunications describes and specifies general terms and provisions on the telecommunication activities in Vietnam. According to this Law on Telecommunications, Telecommunications service means the service of sending, transmitting, receiving or processing of information between two users or within a group of users of telecommunications services, including basic service and value-added service.

The government authorities perform three main tasks of state management on telecommunications in Vietnam:

i) to cater for an open competition that allows all businesses that are established under Vietnamese law and are engaged in providing telecommunication services or infrastructure therefore, to enter the market;

ii) secondly, to create a legal framework to ensure that enterprises and market participants could enter the market and handle acts of unfair competition;

iii) to create good conditions for building and modernizing telecommunication networks and for enhancing the security and defense operations of the state to improve the standards for international cooperation in telecommunication.

According to Article 5 of The Law on Telecommunications, the safety of the telecommunication infrastructure and information security are responsibilities of all organizations and individuals.  The Ministry of Information and Communications shall hold the main responsibility and in cooperation with the Ministry of National Defense; the Ministry of Public Security and concerned agencies, it also shall coordinate the safety of the telecommunication infrastructure and informa­tion security in telecommunication activities.

The Law on Telecommunications also provides general principles regarding telecommunication services connected to foreign investors. According to Article 18 of The Law on Telecommunications, forms and conditions of foreign investment and capital contribution of foreign investors in telecommunication services must comply with Vietnamese laws and international treaties to which the Socialist Republic of Vietnam has signed to.

The Government shall specify forms and conditions for foreign investment and determine the maximum capital contribution of foreign investors in telecommunication services. Foreign investors who invest in telecommunication services for the first time in Vietnam must also complete formalities to obtain an Investment Certificate and the Telecommunications Business Service License. Besides guiding on the specific matters such as foreign investment in telecommunication services, the Law on Telecommunications established a legal framework that covers all matters connected with telecommunication services in an all-embracing way for the first time in Vietnam.

Professionals at ANT Lawyers work on many a variety of telecommunications, media and technology transactions and cases. Our attorney’s industry knowledge and expertise allow us to effectively support the information technology sector. We could deliver the experience and expertise needed to handle issues in both private practice and in corporate and regulatory bodies.

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