You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

January 6, 2025

New Decree Provides Guidance on Vietnam’s Telecom Law

Subscribe to Updates

On December 24, 2024, the government of Vietnam issued Decree No. 163/2024/ND-CP, providing guidelines for implementing the new Telecommunications Law that took effect on July 1, 2024 (“Decree 163”). This new decree replaces Decree No. 25/2011/ND-CP and its amendments (“Decree 25”) and took effect immediately upon issuance, with regulations on data center services, cloud computing services, and basic telecom services over the internet (“over-the-top” or OTT telecom services) having an official effective date of January 1, 2025.

Decree 163 introduces substantial changes across the telecom sector, covering various aspects including service provision, licensing, standards and technical regulations, quality, passive infrastructure planning, dispute resolution, and more. Hence, it is necessary for enterprises to conduct a compliance review to identify gaps between the new decree and their business models, and take necessary steps to ensure lawful business operations in Vietnam.

Below are some highlights of Decree 163.

Expanded Scope of Services

For basic telecom services, Decree 163 has introduced machine-to-machine (M2M) communication and classified it as a basic telecom service. This establishes a regulatory framework for IoT device communication, previously unregulated in Decree 25.

For value-added telecom services, in light of the new Telecommunications Law, Decree 163 provides more detailed regulations for new telecom services such as data center services, cloud computing services, and OTT telecom services, which were not addressed in Decree 25.

Regulation of Three New Telecom Services

Expanding on the Telecommunications Law’s definitions of data center services, cloud computing services, and OTT telecom services, Decree 163 applies a light-touch management approach to regulate these three new services, as follows:

  • Offshore providers: Cross-border service providers are exempt from signing commercial agreements with licensed local telecom companies. They only need to notify the Vietnam Telecommunications Authority (VNTA) using the prescribed procedures and forms before offering services.
  • Onshore providers: The foreign ownership cap is removed, allowing 100% foreign-owned enterprises in Vietnam. OTT telecom and cloud computing providers must notify the VNTA while data center providers must register with the VNTA before providing services.

Management of Subscriber Information

Decree 163 allows subscribers to register their information online via telecom providers’ applications and strengthens mobile subscriber information management to prevent fraud and ensure accuracy.

Telecom enterprises must comprehensively verify subscriber identities by:

  • Matching identity document details with the National Population Database.
  • Using a one-time authentication code (OTP) sent to a previously registered SIM for registering and activating additional SIMs.
  • Implementing video call verification to collect, verify, and confirm customer identification to ensure the same accuracy as in-person verification.

Outlook

Decree 163 tackles modern challenges, including emerging services, subscriber fraud, and cross-border service provision, offering clearer guidance compared to Decree 25. While the government aims to foster fair competition, efficient infrastructure, and consumer protection, Decree 163 also signals increased regulatory oversight in the telecom sector.

Related Professionals

Industries

Technology

Location

RELATED INSIGHTS​ 

May 14, 2025
Following the amendment to the Emergency Decree on Measures for the Prevention and Suppression of Technological Crimes in mid-April 2025, new measures were introduced by the Electronic Transactions Development Agency (ETDA) in a hearing session held on May 13, 2025, to establish shared liability between online social media platform operators and other in-scope operators for damages arising from technological crimes. Stakeholders are being invited to submit their comments on the proposed new provisions directly to the ETDA by May 20, 2025. The concept of the new measures for social media platform operators is that to be released from liability for damages arising from technological crimes, social media platform operators must demonstrate compliance with the relevant technological crime prevention standards and measures prescribed by their respective regulators (“safe harbor rules”). Safe Harbor Rules Under the principles of the proposed safe harbor rules, social media platform operators and the relevant service providers would be required to comply with the following obligations: Immediate takedown and suspension of dissemination: Disable access, remove the content from the system, or suspend the relevant service within 24 hours of receiving an official notification from the Cyber Crime Investigation Bureau’s Anti-Online Scam Operation Center (AOC) that a service or social media platform is disseminating content that is or may be used to commit or support technological crimes. Establishment of notification channels: Establish a system or channel to receive notifications from the AOC. User registration and identity verification: Require user registration (including identity verification and authentication) before allowing content to be posted, with sufficient information to identify the user. Suspending dissemination of suspect advertisements: Disable access to advertisements reasonably suspected of involving or potentially involving the commission of technology-related crimes. Reporting: Report on actions taken, including details like account owner information, IP address, email, or phone number used for account
Read More
May 5, 2025
On April 29, 2025, the government of Vietnam promulgated Decree No. 94/2025/ND-CP with regulations on a controlled “sandbox” for innovative fintech solutions in the banking sector (Decree 94). The decree aims to promote innovation, modernize banking, and enhance financial inclusion while assessing risks and benefits of fintech solutions in a controlled testing environment. Fintech Sandbox Currently, the fintech sandbox focuses on three specific areas: Credit scoring Open API data sharing Peer-to-peer (P2P) lending Eligible participants for the fintech sandbox include: Credit institutions and foreign bank branches (except for P2P lending) Fintech companies operating in Vietnam Cross-border supply by foreign providers is not included in the sandbox framework. Eligible participants are permitted to provide fintech solutions only within the scope specified in the Certificate of Sandbox Participation issued by the State Bank of Vietnam in consultation with other ministries. P2P lending companies face specific restrictions within the fintech sandbox, including prohibitions against: Providing security for customer loans Operating as a customer (i.e., P2P lender or borrower) Providing P2P lending solutions to pawn shops The maximum sandbox period is two years, with the possibility of extension as permitted by law. The outcomes of the fintech sandbox will serve as a practical basis for authorities to develop and refine future fintech regulations. It is worth noting that participation in the sandbox does not guarantee that participants will meet relevant business and investment conditions that may be stipulated in future regulations. Decree 94 will take effect on July 1, 2025, signaling that the Vietnamese government intends to take a proactive approach to fostering fintech development. Implications Parties interested in participating in the fintech sandbox should begin preparing now to be ready to apply for a Certificate of Sandbox Participation when the decree takes effect.
Read More
May 2, 2025
Attorneys from Tilleke & Gibbins have updated the latest edition of Doing Business in Thailand, a Q&A-style guide from Thomson Reuters Practical Law that offers an overview of key legal considerations for companies operating in jurisdictions worldwide. The contribution outlines the country’s legal and regulatory framework for foreign investment and business operations and reflects the latest legislative developments. The chapter addresses the following core topics: Legal system: Structure of the courts and the codified nature of Thai law. Foreign investment: Business restrictions under the Foreign Business Act, sector-specific regulations, exchange control rules, and investment incentives. Business vehicles: Overview of partnerships, private and public limited companies, and other legal entities. Employment: Labor protections, employment contracts, foreign worker requirements, and termination procedures. Tax: Corporate and personal income tax, indirect taxes, and tax obligations for residents and non-residents. Intellectual property: Registration and enforcement of patents, trademarks, designs, and copyrights. Data protection: Key provisions of the Personal Data Protection Act and related compliance obligations. Competition law: Regulatory framework under the Trade Competition Act. Anti-bribery and corruption: Relevant legislation and enforcement mechanisms. E-commerce and digital business: Legal regime for online transactions and digital platforms. Marketing and advertising: Consumer protection laws and regulations affecting advertising and marketing practices. Product regulation and liability: Safety standards, liability regimes, and roles of enforcement authorities. Practical Law, a legal reference resource from Thomson Reuters, publishes a range of guides for hundreds of jurisdictions and practice areas. The insurance and reinsurance guide is a valuable resource for legal practitioners, covering numerous jurisdictions worldwide. To view the latest version of the guide, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.
Read More
April 30, 2025
With a favorable crypto climate from the Trump administration in the United States, Thailand is ready for digital asset platforms and has market appetite. This article highlights the country’s regulatory initiatives supporting the growth of digital assets like crypto, stablecoins, and smart contracts, along with efforts to establish clear oversight. Bank of Thailand Sandbox Stablecoins used as a medium of payment, particularly those pegged to the Thai baht (THB) for public use, are considered as mirroring fiat currency, which violates the Currency Act B.E. 2501 (1958). These can also be classified as e-money under the Payment Systems Act B.E. 2560 (2017). The Bank of Thailand (BOT) urges issuers to engage in preconsultation prior to implementation, due to concerns about stablecoins being used in place of THB currency. Other FX- or asset-backed stablecoins are not recognized as legal tender under Thai law, and users must bear their own risks. The BOT recognizes the potential and benefits of these technologies in reducing operational costs for financial service providers and addressing the needs of financial service users. Consequently, the BOT issued a sandbox framework in June 2024. In particular, the enhanced regulatory sandbox allows nonlicensed entities to test financial innovations in controlled conditions. These tests must have a clearly defined duration (usually under one year) and involve a limited user group with an exit strategy. Several programmable payment projects—automated transactions with predefined conditions for the payment of goods and services—were piloted under this sandbox, which closed for applications in September 2024. Eight participants are planning to launch their test runs this year, some of which include asset tokenization or exchange global stablecoins in their programmable payment projects. Thai Securities and Exchange Commission Sandbox Given that digital asset businesses fall under the Royal Decree on Digital Asset Businesses B.E. 2561 (2018), supervised by
Read More