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

February 28, 2025

Unpacking Vietnam’s Decree 163: Key Implications for Telecom Service Providers

Subscribe to Updates

Vietnam’s Decree No. 163/2024/ND-CP (Decree 163), which has been in full effect since January 1, 2025, provides crucial guidance on the implementation of Vietnam’s 2023 Telecom Law. Decree 163 replaced Decree No. 25/2011/ND-CP dated April 6, 2011 (Decree 25), which guided the implementation of the previous 2009 Telecom Law, and introduces many notable changes to the regulations on telecom service provision. Some key changes that will impact businesses engaged in the telecom sector in Vietnam are detailed below.

1. Classification of Telecom Services

The classification of telecom services into “basic telecom services” and “value-added telecom services” has been retained, in alignment with Vietnam’s WTO commitments in the telecom sector. However, Decree 163 expands the scope of both categories, as follows:

  • Basic telecom services: “Transmission services for machine-to-machine (M2M) communication” and “leasing services of all or part of the telecom network” are added. “Image transmission services” is changed to “transmission services for radio and television.”
  • Value-added telecom services: “Data center services,” “cloud computing services,” and “basic telecom services over the internet” (also known as over-the-top (OTT) telecom services) are added.

2. M2M Communication Services

Since M2M communication services are classified as basic telecom services, without exception, they are subject to the same regulatory framework. Specifically:

  • Cross-border provision: M2M communication services provided across borders must be conducted through a commercial agreement with a Vietnamese telecom enterprise licensed to provide telecom services with an international communication scope.
  • Onshore provision: Onshore M2M communication services will require a telecom license.

3. New Telecom Services (Data Center, Cloud, and OTT Telecom Services)

The 2023 Telecom Law adopted a light-touch management approach for data center, cloud, and OTT telecom services by not requiring the same licensing as previously regulated value-added telecom services, but instead mandating registration or notification before service provision. Decree 163 offers clearer guidance on this approach, specifically:

  • Cloud and OTT telecom services: Both onshore and offshore providers are required to notify the Vietnam Telecommunications Authority (VNTA) under the Ministry of Information and Communications (MIC).
  • Data center services: Offshore providers of data center services only need to notify the VNTA while onshore providers must register with the VNTA.

The required dossiers for notification and registration must be prepared in Vietnamese, following prescribed forms, and can be submitted in person, via postal service, or through the national public service portal. For onshore enterprises providing both data center and cloud computing services, only a registration form needs to be submitted, with cloud service details included in the same form.

Decree 163 specifies a relatively short timeline of three working days for processing these dossiers.

Key Obligations for Service Providers

Enterprises providing these three new services, which can include 100% foreign-owned enterprises in Vietnam, must fulfill certain obligations in addition to registration or notification requirements. These key obligations include storing and managing user information, user verification, and various specific obligations of onshore and offshore providers.

Offshore data center and cloud computing service providers also have certain additional obligations, such as promptly taking necessary measures to block access to information as requested by competent authorities.

Further, Decree 163 imposes certain obligations when data center and/or cloud services are provided to state agencies to serve state activities, such as storing data of the state agencies using these services within Vietnam.

4. Satellite Telecom Services

Onshore service provision: Decree 163 retains the conditions for the establishment of public fixed satellite and mobile satellite telecom networks regarding the charter capital and telecom network deployment from the previous Decree 25, including the commitment to invest at least VND 100 billion in the telecom network within the first three years.

Cross-border service provision: For providing cross-border telecom services via fixed satellite networks or mobile satellite networks, among other conditions, offshore providers must enter into a commercial agreement with a Vietnamese telecom enterprise licensed to provide telecom services with an international communication scope.

5. Telecom Market Management

Decree 163 introduces criteria for identifying telecom service markets under state management, and establishes criteria for identifying telecom enterprises and groups of enterprises with dominant market positions in state-managed service markets, using quantifiable principles suitable for telecom business activities. The decree tends to impose certain obligations on the identified telecom enterprises and groups of enterprises to ensure fair competition in the market.

6. Telecom Infrastructure Management

The development of telecom infrastructure in Vietnam is one of the key focuses of Decree 163, which covers the following main aspects of telecom infrastructure management, among others:

  • Protecting telecom infrastructure: Telecom enterprises are responsible for ensuring the safety of telecom infrastructure, including preventing attacks and incidents, maintaining stability with backups, preventing prohibited activities, ensuring safety for equipment and staff, and adhering to relevant standards and technical regulations.
  • Ensuring network information security: Telecom enterprises must ensure network information security in their operations by, among other measures, protecting information systems and handling incidents at the request of the MIC.
  • Sharing of passive telecom infrastructure: Decree 163 stipulates the authority to resolve the sharing of passive telecom infrastructure in cases where telecom enterprises cannot reach an agreement (except for price issues). The resolution of disputes will be handled by either the local Department of Information and Communications or the MIC, depending on the location of the passive telecom technical infrastructure in question. If the parties cannot reach an agreement on the price for sharing passive telecommunications infrastructure, negotiations must be carried out in accordance with the provisions of the pricing laws.
  • Sharing of active telecom infrastructure: The sharing of active telecommunications infrastructure among telecom enterprises is based on the principle of encouraging sharing to save costs for telecom network deployment, while ensuring compliance with competition law and radio frequency law.

7. Management of Mobile Subscriber Information

Decree 163 dedicates a section to the management of mobile subscriber information, offering comprehensive regulations on the subject. These include methods for registering mobile subscriber information, required documents for registration, verification of subscriber details, the scope of subscriber information, service provision after registration, registration for prepaid subscribers, storage and usage of subscriber data, subscriber responsibilities, and telecom enterprises’ obligations in addressing subscribers with incorrect information.

Business Recommendations

The 2023 Telecom Law, as detailed by Decree 163, demonstrates the government’s clear intent to catch up to and regulate recent advancements, innovations, and emerging business models in the technology and telecom sectors. The following are some recommendations for businesses:

  • Adopt proactive compliance strategies: Ensure familiarity with classifications and specific regulatory obligations for telecom services. Especially, businesses operating in the areas of M2M communication, cloud computing, data center services, and OTT telecom services should update internal compliance systems to address new requirements in these areas to avoid potential non-compliance risks.
  • Leverage emerging opportunities: With the government’s goal of opening markets and attracting foreign investment through incentives that support digital transformation, businesses should consider expanding and investing in areas like cloud computing, OTT services, and data centers to capitalize on emerging opportunities.
  • Adapt to digital transformation trends: Pay close attention to the new regulations aimed at facilitating digital transformation. For instance, consider investing in the development or optimization of mobile applications for subscriber registration and verification to align with the digital transformation push.
  • Strengthen data security and privacy practices: With increased regulatory focus on telecom infrastructure security and network information security, businesses should prioritize robust cybersecurity and network information security measures.

By navigating Decree 163 proactively, telecom enterprises can position themselves for sustainable growth while contributing to Vietnam’s digital economy ambitions.

Related Professionals

Industries

Technology

Location

RELATED INSIGHTS​ 

June 19, 2025
The Bank of Thailand (BOT) has released draft guidelines establishing principles for managing artificial intelligence (AI) risks in the financial sector. The draft guidelines provide a structured framework for the responsible adoption of AI technologies. Financial service providers will be able to use the guidelines as a reference to appropriately manage their risks in a manner that aligns with internationally recognized best practices. The BOT is accepting public comments on the draft guidelines until June 30, 2025. Scope and Application The draft guidelines apply to all financial service providers, including financial institutions and special financial institutions under the Financial Institution Business Act, as well as payment providers under the Payment Systems Act. These guidelines supplement existing BOT risk management guidelines covering IT risk management, third-party risk management, data governance, and market conduct. The guidelines define AI systems as systems that mimic human intelligence, including machine learning, deep learning, generative AI (such as large language models), and agentic AI. This definition specifically excludes rule-based automation systems like robotic process automation and condition matching. Key Risk Management Principles The guidelines lay out two main principles in managing AI risk. Governance: Financial service providers should define and establish clear roles and responsibilities for their personnel and AI system supervision structures to uphold FEAT (fairness, ethics, accountability, and transparency) principles as follows: Stakeholder roles and responsibilities. Financial service providers should define roles and responsibilities for boards and executives on AI risk oversight. Responsibilities include establishing an AI system usage policy, designating personnel responsible for AI risk management, and building awareness of AI-related risk within the organization. AI system usage policy. The AI system usage policy should be aligned with organizational objectives, regulatory requirements, and FEAT principles. These policies should be reviewed regularly to respond to technological advancements and evolving risk profiles. Risk management
Read More
June 19, 2025
Thailand’s Electronic Transactions Development Agency (ETDA) has announced plans for increased enforcement of the Royal Decree on the Operation of Digital Platform Service Businesses That Are Subject to Prior Notification B.E. 2565 (2022). The ETDA outlined a comprehensive enforcement framework and review process during an online meeting with digital platform service operators on June 11, 2025. The ETDA’s enhanced enforcement approach includes systematic reviews of notification submissions, formal correction orders, and potential criminal penalties for noncompliance. Digital platform operators should immediately assess their current notification status and prepare for increased regulatory scrutiny. Review and Amendment of Previously Submitted Notification Data The ETDA will begin reviewing operation notification forms and annual reports submitted by digital platform service operators to assess each platform’s risk level and develop tailored regulatory obligations. In this comprehensive review process, the ETDA will: Examine the accuracy and completeness of submitted notification data; Request additional information as needed by phone or email; and Issue formal orders as needed requiring operators to correct or complete missing information. Operators who fail to comply with ETDA orders may face suspension of operations, revocation of their notification receipt, and public disclosure of their noncompliant status on the ETDA’s website. The ETDA will conduct follow-up workshops in July 2025 for operators whose data remains unclear or incomplete. Enforcement Framework and Penalties The ETDA outlined a three-tiered enforcement framework with escalating consequences for different types of violations, as follows: Failure to notify before commencing operations: Operators who begin services without proper notification may face criminal penalties under the Electronic Transactions Act, including up to one year of imprisonment, fines of up to THB 100,000 (approx. USD 3,070), or both. Additional consequences include suspension of operations and potential liability for company directors. Failure to correct or comply with official orders: Noncompliance with ETDA correction
Read More
June 13, 2025
In today’s digital age, cyberattacks have become a real threat to organizations worldwide. These attacks can range from phishing and malware to ransomware and distributed denial of service (DDoS) attacks. As the frequency and sophistication of these attacks increase, so does the importance of cybersecurity compliance. In the corporate world, compliance refers to the process of ensuring that a company and its employees adhere to all relevant laws, regulations, standards, and ethical practices—but it should not stop there. Compliance should also encompass asset recovery and disciplinary measures, which can both help organizations address incidents effectively and promote good governance. Cyberattacks are malicious attempts to access or damage a computer system or network, often carried out for financial gain, for political activism, or simply to cause disruption. For instance, a successful attack might involve an attacker creating an email address that closely resembles a legitimate one, perhaps by changing only one or two characters. That email address is then inserted into an existing conversation thread, making it appear as if the user with this email address was already part of the discussion. This tactic can easily deceive a recipient into believing the email was sent from a trusted source, thereby leading them to click on malicious links, provide sensitive information, or even make payments in accordance with the attacker’s request or instructions. Phishing attacks like these are particularly dangerous and can have a serious impact on the ongoing business of a corporation because they exploit the trust and familiarity established in the original email chain. Effective Mitigation Approaches Mechanisms for addressing the aftermath of a crisis provide important recourse to affected organizations, but effective compliance mechanisms can minimize the risk of such crises ever occurring. Companies should therefore prioritize preventative measures and implementation of effective crisis management schemes. Various legal
Read More
May 28, 2025
Tilleke & Gibbins attorneys in Vietnam have contributed the 2025 edition of Doing Business in Vietnam, a comprehensive Q&A-style resource from Thomson Reuters Practical Law that provides essential insights for companies navigating business operations in Vietnam. The guide presents a detailed overview of the country’s legal framework and regulatory environment, reflecting recent updates in Vietnamese legislation and practice. This annually updated guide offers key information on the following areas: Legal system: Structure of the Vietnamese judiciary and the role of codified law. Foreign investment: Conditions for market access, licensing requirements, foreign ownership restrictions, and investment incentives. Business vehicles: Formation and operation of legal entities, including limited liability companies, joint-stock companies, and representative offices. Employment: Employment contracts, social insurance, labor rights, and procedures for hiring foreign nationals. Tax: Overview of corporate income tax, personal income tax, value-added tax, and other tax obligations. Intellectual property: Procedures for protecting and enforcing patents, trademarks, copyrights, and other IP rights. Data protection: Compliance requirements under Vietnam’s data privacy laws, including the Personal Data Protection Decree. Competition law: Antitrust rules and regulatory oversight under the Law on Competition. Anti-bribery and corruption: Legal framework and enforcement practices aimed at curbing corrupt activities. E-commerce and digital business: Regulations governing online platforms, digital content, and cross-border services. Marketing and advertising: Laws and guidelines on advertising standards and consumer protection. Product regulation and liability: Safety requirements, product liability issues, and roles of relevant authorities. Doing Business in Vietnam is part of Practical Law’s global series of legal guides designed to support international practitioners and businesses. To access the most recent edition of the Vietnam guide, visit the Practical Law website and sign up for a free trial.
Read More