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​ 

March 16, 2026
Thailand’s Securities and Exchange Commission (SEC) has broadened the definition of institutional investors, expanded the types of qualifying investments, and updated financial qualification thresholds for various investor categories through a revised notification on the definitions of institutional investors, ultra-high net worth investors, and high net worth investors. The amended framework, which came into force on March 1, 2026, adds digital asset business operators, investment planners, and investment consultants to the roster of entities recognized as institutional investors, and broadens the definition of investment to account for digital tokens. Expanded Definition of Institutional Investors Under the SEC’s revised notification, the category of institutional investors now expressly includes digital asset business operators licensed under the Royal Decree on Digital Asset Businesses B.E. 2561 (2018). This addition recognizes the growing role of digital asset platforms and service providers in Thailand’s investment ecosystem and aligns the regulatory treatment of digital markets with that of traditional markets. The definition of institutional investors now also encompasses investment planners and investment consultants approved by the SEC. Previously, only SEC-approved investment analysts held this status; the expansion covers a broader scope of professionals who possess comparable expertise and experience in evaluating investment opportunities. Broadened Investment Definition The revised framework now defines investment to mean direct or indirect investment in a wider range of assets beyond deposits. Specifically, the definition covers: Securities under the Securities and Exchange Act Derivatives under the Derivatives Act Investment tokens offered to the public Government-issued digital tokens (G-tokens) as specified in a separate SEC notification This expansion ensures that financial status assessments reflect the full spectrum of an investor’s holdings, including emerging digital assets. Updated Financial Qualification Thresholds The amended SEC notification also provides updated qualification thresholds for angel investors, ultra-high net worth investors, and high net worth investors. While the core criteria
Read More
March 13, 2026
Vietnam’s Law on Intellectual Property (IP Law) has undergone continuous amendment in recent years, with the latest amendment issued at the end of 2025. Among the amended and supplemented provisions, the regulation that has perhaps attracted the most attention is a provision relating to the use of protected IP objects by artificial intelligence (AI) systems. Specifically, Article 7 of the 2025 IP Law introduces a completely new Clause 5, which reads in full as follows: “Organizations and individuals are permitted to use texts and data relating to intellectual property objects that have been lawfully published, and which the public is allowed to access, for the purposes of scientific research, experimentation, and training of artificial intelligence systems, provided that such use will not unreasonably affect the legitimate rights and interests of the authors and intellectual property rights holders in accordance with this Law. With respect to texts and data that are objects protected by copyright and related rights, the use of the texts and data as set forth herein must also be in accordance with the regulations of the Government.” Analyzing this newly added provision in the context of how it was conceived, as well as the challenges that still lie ahead, can provide some interesting insights. From Aspirations to Flight in Science and Technology From the end of 2024 and throughout 2025—the 50th anniversary of the country’s reunification—Vietnam witnessed numerous sweeping changes in many areas, including legislative development. It could be said that no sessions of the National Assembly have ever adopted as many laws, resolutions, and major policies as this one. The aspirations of the highest-level leadership have been concretized into major law and policy projects, which were drafted, developed, and passed at record speed. All of this was aimed at building a foundation for Vietnam to achieve
Read More
March 12, 2026
Thailand’s AI legislative framework took another step forward when the Office of the Consumer Protection Board (OCPB) issued a notification establishing guidelines for AI-generated advertising that may cause material misunderstanding about products or services. The notification, which is already in effect, was issued under the Consumer Protection Act B.E. 2522 (1979) and its amendments, which prohibit advertising that is unfair to consumers or may cause harm to society, including false or exaggerated statements and statements that may cause material misunderstanding about products or services. The notification addresses emerging advertising practices, including the use of images edited using software or AI to attract consumer interest or build credibility. The OCPB noted that such advertising may result in consumers misunderstanding the essential characteristics, condition, or usage of products, which violates consumer rights and causes damage. Key Requirements on AI-Generated or Digitally Manipulated Advertising Content For advertisements using still images or videos created or edited with software programs or AI tools that may cause the depicted product or service to differ from the actual product sold or service provided—which may cause misunderstanding regarding the condition, quality, quantity, or other essential aspects of the products or services—advertisers and business operators must comply with the following requirements: Prior authorization. Obtain approval from relevant regulatory authorities where required by law. Accurate representation. Ensure that the advertised size, quantity, volume, number, or composition matches the actual product or service being sold, whether in still images or videos. Mandatory AI disclosure labels. Display clear disclosures when AI or software is used to create or edit images, such as: “Real image or simulation edited using AI” “Photo from actual location or simulation edited using AI” “Photo from actual product or edited simulation” “Image created by AI” “Video created by AI” Clarity of disclosure. Ensure disclosures are clearly visible,
Read More
March 10, 2026
Thailand’s Ministry of Finance and Securities and Exchange Commission (SEC) have issued regulations broadening the criteria for determining who qualifies as a “major shareholder” of licensed securities and digital asset business operators. Under relevant SEC regulations, major shareholders of a regulated entity must obtain regulatory approval and undergo screening by the SEC. The revised framework introduces both shareholding-based and control-based tests to determine which shareholders require regulatory approval for a wider range of indirect ownership structures and de facto control. The Ministry of Finance notification took effect on February 21, 2026, while the SEC’s clarifying rules took effect on March 4, 2026. These changes aim to enhance transparency around beneficial ownership and strengthen regulatory oversight of entities operating in Thailand’s capital markets. Expanded Definition Under the revised framework, a “major shareholder” now includes persons who directly or indirectly hold more than 10% of the voting rights in a regulated company, as well as persons who exercise control over the regulated company or its shares. This system of two separate tests, based on both shareholding and control, differs from the prior regime, which focused primarily on shareholding thresholds and applied a more limited method for determining indirect shareholdings. The two tests (detailed below) operate independently of each other, and any person identified by either of the tests will be deemed a major shareholder. Shareholding-Based Test Broadens Indirect Ownership Attribution For the shareholding-based test, the SEC recognizes two existing methods for identifying indirect ownership, together with a new proportional attribution method. Any person captured under these methods, which are described below, will be regarded as a major shareholder of the regulated company and must obtain SEC approval as a major shareholder. First, the existing framework continues to apply to both first-tier and chain ownership structures. Approval is required for (1) first-tier
Read More