Significant shift in Vietnam’s telecoms landscape to begin

During the sixth session of the 15th National Assembly, the amended Law on Telecommunications was approved, with the aim of striking a delicate balance between regulating these emerging services and fostering their growth.

Pavel Poskakukhin, co-chairman, Digital Sector Committee, European Chamber of Commerce in Vietnam

The amended law will come into effect in 2025 for the provisions regulating OTT telecommunications services, cloud computing, and IDC services. For the remaining provisions, it will take effect in July 2024.

In the draft stage of the amended law, concerns have emerged regarding the potential integration of new services and the necessity for clear and distinct regulations due to their unique characteristics. However, during the drafting process, some of the concerns mentioned above have been partially addressed.

Additionally, the challenges in implementing the amended law emphasise the need for both the government to establish comprehensive guidelines and for businesses to enhance their understanding and compliance with the evolving legal landscape in the telecoms sector.

The amended law marks a departure from the conventional approach by expanding its scope to include businesses providing basic services on the internet. Unlike the former law, which was limited to traditional telecommunications service providers, this broadened perspective acknowledges the evolving nature of digital services in an era dominated by connectivity and technological advancements.

At the draft stage of the amended law, some provisions of the regulation were identified as potentially causing uncertainty for businesses providing three new services, such as classifying OTT, cloud, and IDC services under the law, subjecting them to regulations similar to those for traditional services, and the need for a light-touch regulatory approach for these new services.

Some obligations were deemed not entirely suitable, and certain terms were not clearly defined. The obligations of businesses providing these services were distributed across various chapters, making it challenging to understand and comply with them. Therefore, there is a strong recommendation to allocate separate chapters to them within the law. Recognising the concerns from the business community, the amended law has stipulated that all the rights and obligations of providers of these three new services are consolidated into a single section. This will aid the convenience and compliance of businesses.

Moreover, such regulation includes providers of these services being exempt from certain obligations, such as not having to contribute to the Public Utility Telecommunication Services Fund and not being required to pay operation fees; and providers not being required to obtain a licence, but instead conducting a registration and notification process.

As the regulations for new services come into effect, a healthy and fair competitive environment is expected to emerge among enterprises in the sector. This competitive landscape is crucial for fostering innovation and driving the development of services like OTT, IDCs, and cloud computing.

The upcoming implementation of regulations for signifies a significant step towards cultivating fairness and competition within Vietnam’s telecommunications sector. As the digital landscape continues to evolve, these regulations aim to provide a level playing field, encouraging innovation, and fostering healthy competition among businesses.

The removal of limits on foreign capital is a significant shift for companies operating in this field. The amended law opens doors to unrestricted foreign investment in the sector, offering our members a more extensive and flexible playing field.

Members of the European Chamber of Commerce in Vietnam (EuroCham) engaged in pioneering services can now enjoy exemptions from certain obligations. This includes relief from contributing to the Public Utility Telecommunication Services Fund and the waiver of operation fees. These tangible benefits reduce financial burdens, creating a more favourable business environment for members.

However, to ensure the effective implementation of this policy, the government needs to issue detailed implementing decrees. To address concerns related to market access, rights, and obligations for new services, the government should proactively communicate the new provisions and ensure that businesses have a comprehensive understanding to facilitate compliance.

Particularly, the Ministry of Information and Communications and its Vietnam Telecommunications Authority should continue to maintain an open and receptive approach and should actively listen to the opinions of the business community, allowing for their contributions and insights in shaping the drafts.

More positive changes expected for telecoms market The newly adopted amended Law on Telecommunications is expected to bring fresh air to the local market from next July. Nguyen Phong Nha, deputy general director of the Authority of Telecommunications under the Ministry of Information and Communications, talked to VIR’s Tung Anh about the positive changes and how to ensure effective enforcement.

Cloud and data centre advances on horizon While the amended Law on Telecommunications is expected to bring new opportunities for businesses in cloud computing and data centres in Vietnam from next summer, experts and businesses are still concerned about barriers that may remain.