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

March 18, 2024

New Telecom Services Set Out in Vietnam’s Telecom Law and Draft Decree

Subscribe to Updates

Vietnam’s new Telecom Law 2023 was promulgated on November 24, 2023, and will take effect on July 1, 2024, for most telecom services. For three newly introduced telecom services—OTT telecom services, internet data center services, and cloud computing services—implementation and compliance will be delayed until January 1, 2025. These new services will be explored briefly below.

The Ministry of Information Communication (MIC) is currently in the process of developing a number of decrees and circulars that will detail the implementation of the Telecom Law 2023, including one main decree that guides the new law in general. This decree is scheduled for prompt promulgation to coincide with the law’s effective date of July 1, 2024.

The draft version of this decree, dated February 22, 2024 (“Draft Decree”), was shared for consultation with international organizations, associations, and enterprises by the Vietnam Telecom Agency (VNTA) in early March 2024 to gather feedback. The Draft Decree is expected to undergo further revisions before being sent to relevant state agencies for input and submission to the Ministry of Justice for assessment by the end of March 2024. The MIC anticipates submitting the subsequent version to the government by April 15, 2024.

 

New Telecom Services: OTT Telecom Services, IDC Services, and Cloud Computing Services

In comparison to the Telecom Law 2009, the Telecom Law 2023 has three new telecom services:

  • Basic telecommunications services on the internet (OTT telecom services) are defined as services whose primary functions including the sending, transmission, and receipt of information between two persons or a group of people using telecommunications services on the internet (Article 3.8 of the Telecom Law 2023). By incorporating the term “primary functions” into the definition, the Telecom Law 2023 aims to exclude services such as ride-hailing platforms where the primary function is transportation, not telecom services for sending and receiving messages between users. This intention has been clearly confirmed by the VNTA in its series of consultation meetings with industry groups during the development process of the new law.
  • Internet data center (IDC) services are services that provide functions including processing, storage, and retrieving information for users via the telecom network by partially or fully leasing a data center.
  • Cloud computing services are telecom services that provide functions including processing, storage, and retrieving information for users over the telecom network via cloud computing.

Under the Draft Decree (Article 5.3), these three new services are all classified as “value-added telecom services.”

 

Indications of Light-Touch Management Principle

Unlike traditional telecom services, these three new services will be subject to a light-touch management principle. While this was not clearly provided in the new Telecom Law 2023, which left it to future decrees to provide further guidelines, the Draft Decree reflects this intention much more clearly.

Cross-border service provision: In particular, the Draft Decree excludes these three new services from the requirement of subjecting offshore companies to sign a commercial agreement with a local licensed telecom company for service provision. Providers of these three new services only need to notify the VNTA before service provision.

Nevertheless, there are certain unclear matters that require refinement in a subsequent version of the Draft Decree. One such issue is whether offshore service providers can commence services immediately after notifying the VNTA, or if they must wait for the VNTA to issue a confirmation of notification. During its meeting for gathering feedback in early March 2024, the VNTA affirmed that offshore companies could provide services immediately upon notification, eliminating the need for any confirmation, and noted that it will consider removing the confirmation requirement from the Draft Decree.

Onshore service provision: The Draft Decree has also lifted the foreign ownership restriction applied to these three new telecom services. It requires onshore service providers of OTT telecom and cloud computing services to merely notify VNTA before providing their services. Onshore IDC service providers must register with VNTA before beginning service provision.

Similarly, there is ambiguity regarding whether IDC service providers must wait for the issuance of a confirmation of registration before providing the services, or can provide the services immediately upon registration. In response to this query, VNTA clarified that IDC service providers are required to obtain a registration certificate before commencing their services.

 

Key Obligations of Service Providers

The Draft Decree introduces a few key obligations of service providers:

  • Verify information about users’ mobile phone numbers before providing services, and store users’ information (service username and mobile phone number) and information about the service usage for the duration specified in the cybersecurity law with regard to OTT telecom service providers.
  • Store and manage user information (full name and telephone or email for individuals; organization name and address, and full name, telephone or email of contact person for organizations) with regard to IDC and cloud computing services. The industry has expressed concerns that this Draft Decree might pose a trade barrier, as current trends among OTT service providers involve minimizing the collection and storage of users’ personal information, aligning with their obligations for personal data protection. By reducing the collection and storage of personal information, not only are costs lowered, but the risk of user data leakage during system attacks is also diminished. Despite these concerns, VNTA has justified the inclusion of telephone numbers, asserting that they are essential for tracking violators in the event of violations through OTT services. Furthermore, VNTA highlighted the effective management of junk SIM cards by the MIC, reducing the risk of being unable to trace individuals based on such junk SIM cards. It is worth noting that the name provided to OTT service providers is the service username, not the actual name of the users.
  • Protect state secrets pursuant to the law on protection of state secrets: This requirement introduces compliance risks as service providers primarily serve as intermediaries without direct access to user information, which is typically encrypted. In response, VNTA has expressed an intention to review and clarify the wording, emphasizing that the obligation applies when service providers are aware of violations but fail to comply with authorities’ requests to prevent or stop such violations.
Related Professionals

Industries

Technology

Location

RELATED INSIGHTS​ 

August 5, 2024
On June 28, 2024, Thailand’s Board of Investment (BOI) updated its list of promoted activities to include data hosting, which is listed as “Activity 8.2.4 Data Hosting Services.” Qualifying data hosting services are eligible for a corporate income tax exemption (capped) for eight years, along with other tax and nontax incentives, such as import duty exemption on imported machinery to be used in the project, the right for foreigners to own land, and work permit and visa facilitation for expats, among others. To be eligible for these BOI incentives, projects must: Provide services for leasing host servers for data storage (data hosting); Have at least two data centers located in Thailand that meet or exceed the ISO/IEC 27001 data center standards; and Have an investment amount (excluding cost of land and working capital) of at least THB 5 billion. Apart from the above specific criteria, projects also need to comply with the general BOI criteria, such as a debt-to-equity ratio no higher than 3:1, submission of a feasibility study report, and use of new machinery, among others. For more details on BOI incentives for software and data center activities, or on any aspect of investment promotion in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Nopparat Lalitkomon at [email protected], or Napassorn Lertussavavivat at [email protected].
Read More
July 19, 2024
Tilleke & Gibbins has contributed the Cambodia, Myanmar, Thailand, and Vietnam chapters to How the Use of Artificial Intelligence Is Regulated in Southeast Asia, a comparative resource published by Drew Network Asia (DNA). The guide provides an accessible introduction to artificial intelligence (AI) and examines how ASEAN member states are approaching governance, regulation, and responsible deployment of AI technologies. The publication begins by outlining core AI concepts and summarizing the ASEAN Guide on AI Governance and Ethics, which reflects the region’s collective approach to promoting innovation while addressing risks. It then presents a comparative overview of nine ASEAN jurisdictions, highlighting emerging national strategies, regulatory developments, and institutional frameworks. Each country chapter responds to a consistent set of ten practical questions. These cover whether a national AI strategy has been issued; the extent to which dedicated AI laws or sectoral regulations apply; the existence of relevant judicial decisions; available guidelines and government support schemes; regulators responsible for AI oversight; approaches to liability, copyright, and data protection; and key considerations for organizations deploying AI technologies. By consolidating developments across the region, the guide serves as a useful reference for businesses exploring AI-related opportunities or compliance obligations in Southeast Asia. As regulatory approaches continue to evolve, readers seeking jurisdiction-specific advice are encouraged to contact the practitioners listed in each chapter. The full guide is available for download using the button below or directly from the DNA website.
Read More
July 10, 2024
The need for privacy and security has grown in tandem with the rapid proliferation of internet-enabled technologies. This is a major concern for consumers and individuals, and governments are increasingly mindful of online threats to their national security and their citizens. All of this represents an imposing challenge for companies—especially now that technology has enabled them to operate with relative ease across jurisdictions throughout the world.
Read More
July 5, 2024
The landscape of intellectual property (IP) has transformed alongside advancements in technology, transitioning from traditional methods to modern online approaches. A growing number of IP infringers are moving their illegal activities to the online sphere, particularly through the sale of counterfeit goods on their websites, social media, or e-commerce platforms. In response to these shifting pressures, Thailand implemented the Computer-Related Crime Act B.E. 2550 (CCA) on July 18, 2007, and amended it in 2017, aiming to enhance the effectiveness of combating online infringement by empowering government officials to request that the court block computer data (called “website-blocking”) that infringes upon other parties’ intellectual property rights, as per section 20(3) of the CCA. From 2018 to May 2024, Thailand’s Criminal Court and Central Intellectual Property and International Trade Court have issued 53 orders to block more than 1,779 infringing URLs. One significant recent development is the Criminal Court’s establishment of the Technology Crime Division, which has been operating since April 1, 2024. Its purpose is to address criminal offenses that occur through electronic means, which should then be handled in an effective and prompt manner by judges who have expertise on technological crimes. In addition, several current measures to combat technology crime, including section 20(3) of the CCA, require court orders for the prevention of electronic criminal offenses or online infringement. The Technology Crime Division has the jurisdiction to consider and grant these orders, which will help expedite the approval process and ensure review by specialized judges. Scope of the Technology Crime Division The announcement of the establishment of the Technology Crime Division within the Criminal Court was published in the Government Gazette on March 18, 2024, with operations commencing on April 1, 2024. The Technology Crime Division is empowered to: Consider and adjudicate technology crime cases, except cases falling
Read More