Vietnam Regulation Affecting Foreign Telecom Service Providers

A latest Vietnam draft decree goals to offer additional readability for overseas telecom service suppliers in three service segments, particularly information middle, OTT, and cloud computing. The draft decree will implement key features of the 2023 Telecom Legislation. Remaining date for public suggestions on the draft decree is April 2, 2024.

The Ministry of Data and Communications (MIC) has launched a brand new Draft Decree detailing the implementation of a number of features of the amended Telecommunications Legislation (the “2023 Telecom Legislation”). The 2023 Telecom Legislation, which was handed in November 2023 and comes into impact on July 1, 2024, introduces provisions for 3 new telecom companies, particularly telecommunications (telecom) companies supplied over the web (OTT companies), cloud computing companies, and information middle companies.

Among the many main provisions, the 2023 Telecom Legislation stipulates that there are not any limits on overseas possession within the provision of the three new telecom companies, that means that overseas firms can have one hundred pc possession in these sectors. As well as, the Draft Decree makes it simpler for firms to enter these sectors by lowering the executive duties required to begin enterprise.

The Draft Decree supplies extra readability on the rights of obligations of overseas and Vietnamese firms to take part in these new classes to help with the implementation of the 2023 Telecom Legislation.

The MIC is soliciting public suggestions on the Draft Decree till April 2, 2024.

Beneath we define among the provisions proposed within the Draft Decree, specializing in the laws associated to overseas telecom service suppliers.

Classification of telecom companies within the Draft Decree

As talked about, the 2023 Telecom Legislation provides three new forms of telecom companies, which it defines as follows:

The three new companies are particularly outlined as follows:

Primary telecom companies on the web – telecom companies that present the principle operate of sending, transmitting, and receiving data between two folks or a bunch of individuals utilizing telecom companies on the web. These are generally referred to as over-the-top (OTT) companies.

Knowledge middle companies – telecom companies that present data processing, storage, and retrieval options for customers by way of telecom networks by leasing half or the entire information middle.

Cloud computing companies – telecom companies that present data processing, storage, and retrieval options for customers over telecom networks by cloud computing.

The Draft Decree proposes to categorise these three companies as value-added companies.

In the meantime, the draft decree supplies extra readability on the classification of various kinds of telecom companies. First, it defines community companies as fundamental telecom companies supplied by telecom firms (telcos) for lease, for full or partial use of the telecom community, for promoting visitors, or for promoting companies to different telcos.

It additionally lists the next as “fundamental companies” supplied to customers of telecom companies:

1. Voice companies;
2. Messaging companies;
3. Fax companies;
4. Video conferencing companies;
5. Leased line companies;
6. Knowledge transmission companies;
7. Radio and tv transmission companies;
8. Transmission companies for machine-to-machine connections;
9. Digital personal community (VPN) companies; and
10. Different fundamental telecom companies in line with laws of the MIC.

In the meantime, value-added telecom companies embrace:

1. Electronic mail companies;
2. Voicemail companies;
3. Worth-added fax companies;
4. Web entry companies;
5. Knowledge middle companies (new);
6. Cloud computing companies (new);
7. OTT companies (new); and
8. Different value-added telecom companies in line with laws of the MIC.

Lastly, the Draft Decree additionally defines “extra telecom companies” that don’t fall into the above classes as “companies that add options and utilities for customers of telecom companies, that are an inseparable half and supplied along with fundamental telecom companies and value-added companies.”

The Draft Decree states that the MIC will launch an inventory of telecom companies based mostly on the above classifications, modifications out there state of affairs, and telecom administration insurance policies.

Rights and obligations of overseas firms to offer telecom companies

International and home firms offering telecom companies in Vietnam have their rights enshrined underneath Vietnam’s Enterprise Legislation. Beneath the Telecom Legislation, they’re additionally shielded from sure authorized liabilities and usually are not required to compensate for oblique damages or unearned income because of the provision of telecom companies that don’t guarantee time and high quality.

Firms offering telecom companies in Vietnam have a spread of duties with regard to storing person data, notifying the authorities of the supply of companies, and guaranteeing compliance with related legal guidelines and laws.

Registration, storage, and administration of person data

Beneath the Draft Decree, when coming into right into a contract to make use of OTT companies, the person is required to offer their service registration identify and cell phone quantity. The corporate offering the OTT companies is accountable for verifying the person’s cell phone quantity earlier than it could possibly present the service. As well as, the OTT service supplier should retailer the knowledge the person supplied when concluding the contract, in addition to details about the person’s use of the service. The storage interval and provision of data to competent state businesses should adjust to the Legislation on Cybersecurity.

In the meantime, when a person enters right into a contract to make use of information middle or cloud computing companies, they need to present the next data:

1. For people: Their full identify and speak to cellphone quantity or e-mail tackle;
2. For organizations: The group’s identify, tackle, and data on the contact individual (full identify and speak to cellphone quantity or e-mail tackle).

The corporate offering the info middle companies and cloud computing companies is then accountable for storing this data in accordance with the Legislation on Cybersecurity.

Lastly, the info of state businesses utilizing information middle and cloud computing companies have to be saved inside the territory of Vietnam. Firms offering information middle and cloud computing companies to state businesses should meet the necessities for guaranteeing data system safety as prescribed by cybersecurity legal guidelines and steering from the MIC earlier than commencing operations.

Rules on the supply of cross-border telecom companies

Beneath the Draft Decree, firms offering cross-border telecom companies (excluding information middle companies, cloud computing companies, and OTT companies) to customers of telecom companies inside the territory of Vietnam should have a business settlement with a Vietnamese telecom firm that’s licensed to offer these companies. The Vietnamese firm should even be permitted to ascertain worldwide gateways, besides in circumstances the place worldwide conventions to which Vietnam is a member have totally different laws.

International firms offering cross-border telecommunication companies to software program growth zones or high-tech zones as stipulated in a global conference to which Vietnam is a celebration are solely permitted to offer satellite tv for pc telecommunication companies to entities permitted to offer telecom companies in these zones.

The Draft Decree additionally specifies that overseas firms offering cross-border OTT companies to customers in Vietnam should additionally adjust to a number of provisions of the Telecom Legislation. These obligations embrace (however usually are not restricted to):

• Refraining from inflicting dangerous interference, damaging tools, buildings, or telecom networks, or harming the lawful actions of the telecom infrastructure of different organizations or people throughout their actions.
• Urgently stopping the supply of telecom companies within the case of riots, use of telecom companies to oppose the State of Vietnam, or violations of nationwide safety on the request of a reliable state company.
• Guaranteeing data confidentiality, together with defending state secrets and techniques, encrypting data when sending, transmitting, or storing data labeled as state secrets and techniques on the telecom community, guaranteeing the confidentiality of the private data of organizations and people transferred by way of the general public telecom community.
• Refraining from partaking in unlawful conduct by the telecom companies as stipulated in Article 9 of the Telecom Legislation.

Notification of provision of telecom companies

FIND BUSINESS SUPPORT

The Draft Decree explicitly excludes the supply of information middle companies, cloud computing companies, and OTT companies from the necessities to have a business settlement with a Vietnamese telcom firm. As an alternative, overseas firms that want to present these companies to customers in Vietnam will solely be required to inform the Vietnam Telecommunications Authority (VNTA) of the supply of companies. This means that the federal government is making an attempt to make it straightforward for overseas firms to enter these industries.

Beneath Article 44 of the Draft Decree, firms offering telecom companies, together with OTT companies, cloud computing companies, e-mail companies, voice companies, and value-added fax companies, should submit a notification of telecommunication service provision to the VNTA to inform them of their intention to offer these companies. The corporate should embrace the next data when submitting the notification:

• The identify of the corporate offering the companies;
• The corporate’s enterprise registration certificates;
• The kind of telecom service being supplied; and
• Details about the standard of the companies supplied.

The VNTA will difficulty a affirmation certificates of the telecom service provision notification to the corporate inside two days of receiving the notification.

In the meantime, firms should register to offer telecom companies similar to information middle companies. To take action, firms should do the next:

• Have a enterprise registration certificates;
• Have a technical plan for the particular sort of service supplied in accordance with laws on service high quality, guaranteeing the security of telecommunications infrastructure and community data safety; and
• Submit registration paperwork for telecom service provision to the VNTA.

The VNTA will difficulty a certificates of registration to the corporate inside 5 working days of receiving the registration paperwork.