Vietnam: TMT Comparative Guide

1. Legal and enforcement framework

1.1 Which legislative and regulatory provisions govern the following in your jurisdiction?

The main statutes governing each sector are as follows:

• Telecommunications:
• • Law on Telecommunications 41/2009/QH12 dated 23 November 2009 adopted by the National Assembly;
  • Law on Radio Frequency 42/2009/QH12 dated 23 November 2009 adopted by the National Assembly;
  • Decree 25/2011/ND-CP dated 6 April 2011 detailing and guiding the implementation of a number of articles of the Law on Telecommunications;
  • Decree 81/2016/ND-CP dated 6 April 2011 amending and supplementing a number of articles of Government Decree 25/2011/ND-CP detailing and guiding the implementation of a number of articles of the Law on Telecommunications;
  • Decree 49/2017/ND-CP dated 24 April 2017 amending and supplementing Article 15 of Government Decree 25/2011/ND-CP dated 6 April 2011 detailing and guiding the implementation of a number of articles of the Telecommunications Law and Article 30 of Decree 174/2013/ND-CP dated 13 November 2013 providing for penalties for administrative violations in the fields of post, telecommunications, information technology and radio frequencies;
  • Decree 91/2020/ND-CP dated 14 August 2020 on fighting spam messages, spam emails and spam calls;
  • Decree 150/2018/ND-CP dated 7 November 2018 amending the decree related to business investment conditions and administrative procedures in the field of information and communication;
  • Decree 15/2020/ND-CP dated 3 February 2020 on sanctioning administrative violations in the sectors of post, telecommunications, radio frequencies, information technology and e-transactions;
  • Decree 14/2022/ND-CP dated 27 January 2022 amending Decree 15/2020/ND-CP on sanctioning administrative violations in the sectors of post, telecommunications, radio frequencies, information technology and e-transactions; and
  • Decree 88/2021/ND-CP dated 1 October 2021 regulating the collection of fees for granting the right to use radio frequencies, auctioning, licensing and transferring the right to use radio frequencies for radio frequency bands.
• Internet:
• • Decree 72/2013/ND-CP dated 15 July 2013 on managing, providing and using Internet services and information on the Internet;
  • Decree 27/2018/ND-CP dated 1 March 2018 amending and supplementing a number of articles of Decree 72/2013/ND-CP dated 15 July 2013 on the management, provision and use of internet services and online information;
  • Decree 15/2020/ND-CP dated 3 February 2020 on regulations for sanctioning administrative violations in the fields of post, telecommunications, radio frequencies, information technology, cybersecurity and e-transactions; and
  • Decree 14/2022/ND-CP dated 27 January 2022 amending Decree 15/2020/ND-CP on sanctioning administrative violations in the sectors of post, telecommunications, radio frequencies, information technology and e-transactions.
• Media:
• • the Law on Press 103/2016/QH13 dated 5 April adopted by the National Assembly;
  • Decree 88/2012/ND-CP dated 23 October 2012 regulating information and press activities of foreign press, foreign representative agencies and foreign organisations in Vietnam;
  • Decree 18/2014/ND-CP dated 14 March 2014 regulating royalties in the field of press and publishing;
  • Decree 72/2016/ND-CP dated 1 July 2016 on photography activities;
  • Decree 06/2016/ND-CP dated 18 January 2016 on the management, provision and use of radio and television services;
  • Decree 08/2017/ND-CP dated 8 February 2017 regulating electronic deposit for audio, visual and electronic newspapers independent of press agencies; and
  • Decree 119/2020/ND-CP dated 7 October 2020 on sanctioning administrative violations in press activities, publishing activities and printing of non-publication products.
• Social media:
• • Decree 72/2013/ND-CP dated 15 July 2013 on managing, providing and using internet services and information on the Internet;
  • Decree 27/2018/ND-CP dated 1 March 2018 amending and supplementing a number of articles of Decree 72/2013/ND-CP dated 15 July 2013 on the management, provision and use of internet services and online information;
  • Decree 150/2018/ND-CP dated 7 November 2018 amending the decree related to business investment conditions and administrative procedures in the field of information and communication;
  • Decree 15/2020/ND-CP dated 3 February 2020 on the sanctioning of administrative violations in the fields of post, telecommunications, radio frequencies, information technology, cybersecurity and e-transactions; and
  • Decree 14/2022/ND-CP dated 27 January 2022 amending Decree 15/2020/ND-CP on sanctioning administrative violations in the sectors of post, telecommunications, radio frequencies, information technology and e-transactions.

1.2 Which bodies are responsible for enforcing the applicable laws and regulations in the relevant sectors? What powers do they have?

(a) Telecommunications

• Law-enforcing bodies:
• • the Ministry of Information and Communication (MIC);
  • the Vietnam Telecom Authority (VNTA); and
  • the Authority of Radio Frequency Management (ARFM) under the MIC.
• Powers:
• • to set guidelines for compliance;
  • to examine, investigate and resolve complaints and denunciations in terms of telecommunications and radio frequencies;
  • to grant and withdraw radio frequency licences;
  • to manage the telecommunications market (including market competition management); and
  • to impose sanctions (primarily warnings and fines; additional sanctions include suspension of a temporary business licence, confiscation of means of violation, expulsion, business suspension and remedial actions).

(b) Internet

• Law-enforcing bodies:
• • the MIC;
  • the VNTA; and
  • the ARFM.
• Powers:
• • to set guidelines for compliance;
  • to examine, investigate and resolve complaints and denunciations; and
  • to impose sanctions (primarily fines; additional sanctions include temporary business suspension and remedial actions).

(c) Media

• Law-enforcing bodies:
• • the MIC;
  • the Authority for Broadcasting and Electronic Information (ABEI) under the MIC;
  • the Authority of Press; and
  • the Vietnam E-commerce and Information Agency under the Ministry of Industry and Trade.
• Powers:
• • to provide guidelines for compliance;
  • to grant and withdraw press licences and journalist cards;
  • to manage the national press depository system;
  • to examine, investigate and resolve complaints and denunciations regarding the press; and
  • to impose sanctions (primarily fines; additional sanctions include suspension of a temporary business licence, confiscation of means of the violation and remedial actions).

(d) Social media

• Law-enforcing bodies:
• • the MIC;
  • the ABEI; and
  • the Ministry of Public Security.
• Powers:
• • to impose sanctions (primarily fines; additional sanctions include suspension of a temporary business licence, confiscation of means of the violation and remedial actions).

1.3 What is the general approach of those bodies in regulating the relevant sectors?

The administrative and enforcement bodies in Vietnam regulate the relevant sectors by:

• participating in the drafting of policies, strategies, plans and legal regulations;
• organising the enactment of regulations; and
• exercising their enforcement powers, such as:
• • handling complaints and denunciations;
  • preventing and combating corruption; and
  • conducting inspections.

1.4 What other industry codes of conduct or best practices are applicable in the relevant sectors?

(a) Telecommunications

N/A.

(b) Internet

N/A.

(c) Media

The Regulation of Professional Ethics for Journalists issued by the Vietnam Journalists Association on 1 January 2017.

(d) Social media

The Code of Conduct on Social Media issued by the MIC on 17 June 2021.

2. Ownership

2.1 Who is eligible to provide services in the following sectors in your jurisdiction? Are there any restrictions on foreign ownership? Do any domicile requirements apply? What other requirements or restrictions apply in this regard?

(a) Telecommunications

Under the Law on Telecommunications, only enterprises with telecommunications licences are eligible to provide telecommunications services, except where exemptions apply. These enterprises can be either Vietnamese enterprises or foreign enterprises.

Foreign investment in telecommunications in Vietnam is divided into two types: investment in facilities-based services and non-facilities-based services. No domicile requirements apply to foreign telecommunications service providers because foreign investment is only allowed through:

• business cooperation contracts; or
• joint ventures with a local telecommunications company.

Restrictions on foreign ownership are regulated under the international commitments in which Vietnam participates – in particular, the following:

• Non-facilities-based services: No more than 65%.
• Facility-based services: No more than 49% under the Schedule of Specific Commitments in Services of Vietnam WT/ACC/VNM/48/Add.2.
• Other commitments:
• • the ninth package of commitments under the Association of Southeast Asian Nations Agreement on Services;
  • Annex 8B of the EU-Vietnam Free Trade Agreement; and
  • the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

For land mobile telecommunications services, an additional restriction on ownership applies: if an organisation or individual already holds more than 20% of the charter capital or shares in a telecommunications enterprise, it must not hold more than 20% of the charter capital or shares of another telecommunications enterprise trading in the same market.

(b) Internet

Generally, in Vietnam, internet service providers (ISPs) are treated in the same way as telecommunications service providers, and are thus subject to similar restrictions on foreign ownership as those which apply to telecommunications service providers – in particular, as follows:

• Non-facilities-based services: No more than 65%.
• Facility-based services: No more than 49% under the Schedule of Specific Commitments in Services of Vietnam WT/ACC/VNM/48/Add.2.
• Other commitments:
• • the ninth package of commitments under the Association of Southeast Asian Nations Agreement on Services;
  • Annex 8B of the EU-Vietnam Free Trade Agreement; and
  • the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

No domicile requirements apply to foreign ISPs because foreign investment is only allowed through:

• business cooperation contracts; or
• joint ventures with a local telecom company.

(c) Media

Under the Law on Press, the following bodies, operating legally in accordance with the regulations of Vietnam, are allowed to establish press agencies:

1. party agencies;
2. state agencies;
3. social-political organisations;
4. social-political professionals;
5. social organisations;
6. social-occupational organisations; and
7. religious organisations at the provincial level or the equivalent or higher level.

Foreign press activities can be carried out only with the approval of the competent authorities.

Pursuant to Decree 31/2021/ND-CP, foreign investment relating to press activities and all forms of news gathering is forbidden.

With regard to motion picture distribution (with certain exceptions), foreign investment must take place through business cooperation contracts or joint ventures with Vietnamese partners which are licensed to provide such services in Vietnam. In this regard, foreign capital contributions may not exceed 51% of the legal capital of the joint venture.

For the provision of paid TV services, foreign investment in principle requires the approval of the prime minister, which is granted on a case-by-case basis.

(d) Social media

Both domestic and foreign enterprises can provide social media services in Vietnam.

To provide social media services in Vietnam, domestic providers must obtain a social networking site licence. To apply for this licence, the enterprise must be registered with appropriate business lines. Depending on the specific business lines (ie, online information and data processing, including transaction processing), foreign investment in social media in Vietnam may be subject to certain restrictions, as follows:

• Foreign investment is allowed through a business cooperation contract or the establishment of a joint venture;
• For non-facility-based services, the foreign investment must not exceed 65% of the joint venture; and
• For facility-based services, the foreign investment must not exceed 50% of the joint venture.

Under certain circumstances, the cross-border provision of social media in Vietnam may be subject to requirements on data localisation and the establishment of a branch/office in Vietnam, in accordance with the Law on Cybersecurity.

3. Authorisations/licences

3.1 What authorisations and/or licences are required to operate in the following sectors? Do any exemptions apply? Do these vary depending on the service to be provided?

(a) Telecommunications

Enterprises may provide telecommunications services after obtaining the appropriate licences required by law. Telecommunications licences include:

• licences for the commercial provision of telecommunications services; and
• licences for telecommunications operations.

Licences for the commercial provision of telecommunications services include:

• licences for the establishment of telecommunications networks granted to service providers with network infrastructure; and
• licences for the provision of telecommunications services granted to service providers without network infrastructure.

The licensing authority is the Ministry of Information and Communications (MIC). Service providers are exempt from the requirement to obtain a telecommunications licence in the following cases:

• They trade in telecommunications commodities;
• They provide telecommunications services as telecommunications service agents;
• They rent transmission lines for the provision of telecommunications-based application services; or
• They operate private telecommunications networks, except where:
• • there are exclusive-use telecommunications networks with wired transmission lines built by such service providers;
  • the members of the network are Vietnamese or foreign organisations or individuals operating in Vietnam for the same purpose, with identical operating characteristics and interrelated through their organisation and operation charters or otherwise; or
  • the network is used by foreign diplomatic missions or consular offices, or by Vietnam-based representative offices of international organisations which enjoy diplomatic privileges and immunities or consular immunities.

(b) Internet

Enterprises may provide internet services after obtaining the relevant licence. The grant of a licence for the provision of internet services is subject to regulation under the Law on Telecommunications.

The licensing authority is the MIC. Exemptions from the requirement to obtain a licence to provide internet services are similar to those applicable for telecommunications licences, as mentioned in question 3.1(a).

(c) Media

The provision of media services is subject to different licensing requirements, depending on the service. Under the Law on Press, the various press licences include:

• licences for operating print newspapers;
• licences for operating print magazines;
• licences for operating electronic newspapers;
• licences for operating electronic magazines;
• licences for publishing supplements; and
• licences for special pages of electronic newspapers/electronic magazines.

The licensing authority in this respect is the MIC. There are no exemptions from the licensing requirements in the media sector.

(d) Social media

Enterprises must obtain a social networking site establishment licence in order to establish a social networking site in Vietnam.

The licensing authority is the MIC. There are no exemptions from the licensing requirements.

There are no licensing requirements for the cross-border provision of social networking sites. However, to provide cross-border services in Vietnam, service providers must strictly comply with the Vietnamese regulations on the provision of public information to users in Vietnam. In certain cases, providers must comply with requirements to:

1. notify the MIC of the relevant contact person at the organisation; or
2. coordinate with the MIC in dealing with illegal information.

3.2 What are the key features of such authorisations/licences?

(a) Telecommunications

The specific contents of each telecommunications licence will vary depending on the type of telecommunications service to which it applies. However, the key features of a telecommunications licence generally include the following:

• information on the licensed enterprise (eg, enterprise name, transaction name, headquarters/branch/representative addresses);
• licence number, grant date of the licence, expiration date of the licence and valid duration (see question 3.6));
• the scope or type of services or the type of telecommunications operations to be provided; and
• the terms and conditions that the enterprise must observe when setting up networks, providing telecommunications services and conducting telecommunications operations.

(b) Internet

The key features of a licence to provide internet services are similar to those of a telecommunications licence as specified in question 3.2(a).

(c) Media

The specific contents of each media licence will vary depending on the type of media services to which it applies. However, the key features of a licence in the media sector generally include the following:

• information on the governing body of the operating organisation and information on the operating organisation (eg, name, address, contact details);
• the licence number;
• the grant date and expiration date of the licence (see question 3.6));
• the type of media service to be provided;
• the purpose(s) of the services;
• information on programmes (if any) (eg, name, language, target audience, technical specifications, method of provision); and
• other specific rights and obligations of the operating organisation.

(d) Social media

The key features of a social media licence include the following:

• information on the organisation setting up the social networking site (eg, name, address, contact details);
• the purpose of setting up the social networking site;
• the licence number;
• the grant date and expiration date of the licence (see question 3.6));
• the scope of service provision;
• the server location in Vietnam; and
• details of the contact personnel.

3.3 What are the procedural and documentary requirements to obtain such authorisations/licences?

(a) Telecommunications

Enterprises applying for a telecommunications licence must submit five application dossiers to the MIC and are responsible for ensuring the accuracy and truthfulness of the application dossier.

The specific requirements on the application dossier will differ depending on the type of telecommunications licence sought. However, the key documents normally include:

• an application for a licence based on the model form issued by the MIC;
• a certified copy of the applicant's corporate documents (ie, enterprise registration certificate, investment registration certificate, charter) (required in certain cases); and
• plan/scheme/other documents to prove the feasibility of service provision and the proposed service fees, as required by each specific telecommunications licence.

(b) Internet

Enterprises applying for a telecommunications licence to provide internet services must submit five application dossiers to the MIC and are responsible for ensuring the accuracy and truthfulness of the application dossier.

Key documents normally include:

• an application for a licence based on the model form issued by the MIC;
• a certified copy of the applicant's corporate documents;
• a confirmation/legal document evidencing legal capital (if applicable);
• a business plan for the first five years with specific content (eg, market analysis and forecast, business scheme, revenue);
• the technical plan, prepared in accordance with the business plan; and
• a written commitment to implement the licence.

(c) Media

Applicants for a licence in the media sector must submit one application dossier to the MIC.

The specific requirements for the application dossier differ depending on the type of licence sought. However, the key documents normally include the following:

• an application for a licence based on the model form issued by the MIC;
• a scheme for the operation of the service;
• a provisional list of personnel; and
• other documents demonstrating the satisfaction of requirements for each type of service.

(d) Social media

The applicant for a licence to establish a social networking site must submit one application dossier to the MIC with the following documents:

• an application for a licence based on the model form issued by the MIC;
• a certified copy of the applicant's corporate documents;
• an operation scheme with specific contents (eg, type of service, scope, field of operation, personnel organisational plan); and
• the terms and conditions of use in the case of social networking sites with specific content.

3.4 What does the authorisation/licensing process involve? How long does it typically take? What costs are incurred?

The following timelines and details of fees fee are statutory only. The actual timelines and fees incurred may diverge significantly from the statutory provisions.

(a) Telecommunications

Licensing procedure: The applicant submits five application dossiers to the MIC via post or electronically. The MIC will review and assess the dossiers. Within 15 working days of receipt of the complete and valid dossiers, the MIC will grant a licence or will provide a written notice of refusal, clearly stating the reasons.

Timeline: Fifteen working days from receipt of the complete and valid documents.

Licensing fee: Licenced telecommunications service providers must pay a fee to establish their networks and a fee to provide telecommunications services. While the fee for establishing a public network must be paid annually, the fees for establishing a private network and for the trial of telecommunications services and networks are lump-sum fees payable for the entire term of the licence.

The fees for granting a telecommunications licence depend on the type of licence sought. At the time of writing, the fees are specifically as follows:

• Licence for the provision of telecommunications services (eg, terrestrial mobile telecommunications services with radio frequencies; satellite stationary telecommunications services): The minimum annual fees range from VND 50 million to VND 2 billion.
• Licence for the establishment of a public telecommunications network: The annual fees range from VND 100 million to VND 5 billion.
• Licence for the trial of telecommunications services and networks: The fees (lump-sum) range from VND 200 million to VND 500 million.
• Licence for the establishment of a private telecommunications network (lump-sum): VND 100 million.
• Licence for the installation of submarine telecommunication cable lines: The fees (lump-sum) range from $500,000 to $1 million (approximately VND 12.4 billion to VND 24.8 billion).

(b) Internet

Licensing procedure and timeline: The procedures and timeline for granting a licence to provide internet services are similar to those specified in question 3.4(a).

Licensing fee: The minimum annual fee for a licence for the provision of internet services ranges from VND 50 million to VND 2 billion.

(c) Media

Licensing procedure: The applicant submits one application dossier to the MIC via post or electronically. The MIC will review and assess the document dossier. Within 90 working days of receipt of the complete and valid dossier, the MIC will either grant a licence or issue a written refusal, clearly stating the reasons.

Timeline: Thirty to 90 days from receipt of the complete and valid documents (depending on the type of licence).

Licensing fee: While media licences relating to press activities do not incur a licensing fee, fees for the grant of a licence and charges may apply to licences for certain media activities. Examples include the following:

• Fees for the issuance of certificates of foreign programme channels on pay radio and TV services: VND 5 million per certificate.
• Charges for the right to provide paid TV services: These charges are paid quarterly by the service provider at a rate of 0.3% on the revenue generated from providing the paid TV service.

(d) Social media

Licensing procedure: The applicant must submit one application dossier to the MIC via post or electronically. The MIC will review and assess the document dossier. Within 30 working days of receipt of the complete and valid dossier, the MIC will either grant the licence or issue a written notice of refusal, clearly stating the reasons.

Timeline: Thirty days from receipt of the complete and valid documents

Licensing fee: None .

3.5 What are the ongoing rights and obligations of the authorisation/licence holder? How is compliance monitored? What penalties may be imposed for breach?

Generally, compliance with ongoing rights and obligations is monitored similarly for all licences: authorisation/licence holders must submit reports on a quarterly/annual basis to the management authorities to demonstrate compliance. In certain circumstances, the authorities may conduct an inspection of the licence holder. If a violation is found, penalties will be imposed. The penalties depend on the seriousness of the violation – the most common penalties are administrative fines and the most severe penalty is revocation of the licence.

The licence holder is subject to ongoing rights and obligations depending on the sector in which it operates, as follows.

(a) Telecommunications

A telecommunications licence holder is subject to the following ongoing rights and obligations:

• to provide telecommunications services, establish a telecommunications network or conduct other telecommunications operations in accordance with the provisions of the granted licence;
• to be responsible for service quality according to standards that have been registered or declared;
• to allocate telecommunications resources in accordance with applicable master plans and regulations on the management of telecommunications resources;
• to submit periodic reports on certain business activities to telecommunications management agencies;
• to ensure the accuracy and timeliness of content and data contracts;
• to refrain from engaging in prohibited activities under the law – for example:
• • taking advantage of telecommunications activities to act against the state; or
  • disclosing state, military, security, economic or external secrets, or other confidential information specified by law; and
• to comply fully with the requirements on licensing costs/fees.

Administrative fines for breaches in this sector range from VND 5 million to VND 200 million.

(b) Internet

The ongoing rights and obligations of internet service licence holders are similar to those applicable to telecommunications licence holders.

Administrative fines for breaches in the sector range from VND 5 million to VND 200 million.

(c) Media

The rights and obligations of media licence holders vary according to the specific type of service. In general, media licence holders are entitled to conduct media operations in accordance with the registered/declared information in the licence and are subject to different sector-specific requirements. For example, in the field of broadcasting services, service providers have the following rights and obligations:

• to choose Vietnamese channels for their free broadcasting service;
• to select suitable telecommunications networks on which to broadcast;
• to use specialised tools to add their names and logos to channels;
• to obey the regulations on the management of information and copyright ownership of content, programmes, television channels and other content on subscription services;
• to obey the regulations on fees, charges, prices and service contracts;
• to obey the provisions stipulated in the licence for the provision of paid radio and TV services;
• to refrain from selling, purchasing, transferring, leasing or allowing someone to use a licence for the provision of paid radio and TV services in any shape or form;
• to comply with the operation report regulation; and
• to submit to inspections by competent authorities under the provisions of the law.

Penalties for breach of these regulations range from VND 1 million to VND 500 million.

(d) Social media

The general ongoing rights and obligations of the holders of licences to establish social networking sites concern:

• the establishment of social networking sites in accordance with the declared information in the licence; and
• compliance with the provisions under the licence.

Specific rights and obligations include the following:

• to provide social networking site services for the public, except for banned services defined by law;
• to announce agreements on the provision and use of social networking site services;
• to take measures to protect the private information of users;
• to notify users of their rights, obligations and risks when storing, exchanging and sharing information online;
• to ensure that users can decide whether to allow their personal information to be provided to other organisations, enterprises and individuals;
• to refrain from providing public information prohibited under the law;
• to cooperate with the competent authorities to eliminate or prevent prohibited information at their request;
• to provide private information on users in relation to terrorism, crimes and violations of law at the request of the competent authorities;
• to have at least one server system in Vietnam undertaking:
• • the inspection, storage and provision of information at the request of the competent authorities; and
  • the resolution of customer complaints about service provisions;
• to register, store and manage the personal information of persons that establish personal websites and other information providers on social networking sites; and
• to make reports and facilitate inspections by the competent authorities.

Administrative fines for breaches in the sector range from VND 10 million to VND 70 million.

3.6 For how long is the authorisation/licence valid? Are variations to the terms possible? How is the authorisation/licence renewed?

(a) Telecommunications

Variations to the term of a telecommunications licence are possible; however, the term cannot exceed the following:

• Licences for the establishment of public telecommunications networks: Valid for a maximum of 15 years.
• Licences for the provision of telecommunications services: Valid for a maximum of 10 years.
• Licences for specialised telecommunications operations:
• • Licences for the installation of undersea telecommunications cable lines: Valid for a maximum of 25 years.
  • Licences for the establishment of private telecommunications networks: Valid for a maximum of 10 years.
  • Licences for the trial of telecommunications network and services: Valid for a maximum of one year.

The term of a telecommunications licence can be extended upon the satisfaction of certain conditions. However, the total duration of the telecommunications licence must not exceed the maximum validity duration prescribed for the specific type of licence. If the term of the licence as initially granted is equal to the maximum prescribed term of validity, then upon its expiry, an extension will only be possible for up to one year. The applicant for the extension must submit five dossiers to the MIC for assessment and consideration to determine whether to grant an extension.

(b) Internet

• Licences to provide internet services: Valid for a maximum of 10 years. The procedure to apply for an extension is the same as that outlined in question 3.6(a).

(c) Media

Variations to the term of a media licence are possible; however, the term cannot exceed the period specified by law. The term of the licence will vary depending on the type of licence. For example, a licence to provide paid radio and TV services will be valid for up to 10 years from the date of issue, but it cannot exceed the effective term specified in the licence for the establishment of telecommunications networks or for telecommunications network leasing agreements.

Media licences – such as licences to provide paid radio and TV services – can be extended once only; and the term of such licence cannot exceed the term specified in a licence for the establishment of telecommunications networks or for telecommunications network leasing agreements. The applicant for an extension must submit one dossier to the MIC for review and approval.

(d) Social media

The term of a licence to establish a social networking site will vary depending on the specific activities of the licence holder, but it may not exceed 10 years.

A licence to establish a social networking site may be renewed no more than twice and the extension each time cannot exceed two years. To apply for an extension, the licence holder must submit the application dossier to the MIC for consideration and approval.

3.7 Can an authorisation/licence be transferred? If so, what is the process for doing so?

(a) Telecommunications and Internet

The current laws do not expressly prohibit the transfer or assignment of telecommunications licences (including licences to provide internet services). The law is also silent on the process for transferring telecommunications licences.

(b) Media

The purchase, transfer and lease or use of licences for the provision of paid radio and TV services are explicitly prohibited.

(c) Social media

Under the current law, there is no explicit prohibition on the transfer of licences to establish social networking sites.

4. Telecommunications

4.1 What provisions apply to the construction of telecommunications infrastructure and the installation of facilities on public and private property?

Vietnamese law provides that the land belongs to the Vietnamese people, with the state acting as the owners' representative and uniformly managing the land. The state grants land use rights to land users in accordance with the law.

The construction of public telecommunications infrastructure and facilities is prioritised in utilised spaces, ground surface areas, underground spaces, riverbeds and seabeds. Public telecommunications service provision is prioritised at railway stations, car terminals, seaports, airports, border gates and other public places, to satisfy the needs of telecommunications service users.

Plans on the construction of traffic works, urban areas, residential areas, industrial parks, economic zones and high-tech zones must include planning on passive telecommunications technical infrastructure to ensure consistency. Other construction investment projects must be synchronised and convenient for the establishment of telecommunications infrastructure, as well as for the provision and use of telecommunications services.

Local plans on passive telecommunications technical infrastructure must be consistent with national plans on telecommunications development and local plans on socio-economic development. This most also be factored into regional, urban and rural residential construction planning.

The relevant people's committees are responsible for allocating land for constructing important telecommunications works relating to national security and using locations for the provision of public telecommunications services within the locality, in accordance with the master plans on passive telecommunications technical infrastructure and land use plans approved by the authorities.

4.2 Do any universal service obligations apply in your jurisdiction? If so, what are they and how are they funded?

Since the first universal service programme was implemented, from 2005 to 2010, Vietnam has consistently adapted its universal service policy to meet the requirements of the World Trade Organization. Currently, Vietnam is implementing a programme on the provision of public telecommunications services until 2025 under Prime Ministerial Decision 2269/QD-TTg dated 31 December 2021. The objective of this programme is the provision of public utility telecommunications services, including:

• compulsory telecommunications services for society and universal telecommunications services in remote, border and island areas, and areas with difficult socio-economic conditions;
• services for poor and near-poor households from 2021 to 2025;
• services for families covered by social policies and other special policy beneficiaries;
• realisation of socio-economic development goals;
• promotion of national digital transformation; and
• assurance of national defence and security.

The funds for the implementation of the programme include:

• VND 12.5 trillion in revenue from the Vietnam Public Utility Telecommunication Service Fund (including the remaining funding of the programme through the provision of public utility telecommunications services in the previous period); and
• other lawful funding sources.

Telecommunications enterprises (with and without network infrastructure) must contribute to the Vietnam Public Utility Telecommunication Service Fund.

4.3 How is interconnection regulated in your jurisdiction? What rules and requirements apply in this regard? Are interconnection and network access charges subject to price regulation?

The Law on Telecommunications expressly provides that interconnection is both a right and an obligation of telecommunications enterprises. In particular, telecommunications enterprises:

• may connect their networks to the networks or services of other telecommunications businesses; and
• must allow other telecommunications businesses to connect to their telecommunications networks and services.

The general principles of interconnection in Vietnam are as follows:

• Connection is based on negotiations to ensure equality and rationality, and to guarantee the rights and interests of all parties;
• The use of telecommunications resources and infrastructure must be efficient;
• The technical requirements of telecommunications connection and safety must be followed and the uniformity of telecommunications networks must be ensured; and
• The legitimate rights and interests of telecommunications service users and relevant organisations and individuals must be safeguarded.

With respect to connections to public telecommunication networks, facilities-based enterprises must provide connections at any point in the network if this is technically feasible. The connection must not be provided on a discriminatory basis in terms of:

• charges;
• technical standards;
• network quality; or
• telecommunications services.

Private telecommunications networks may connect to public telecommunications networks, provided that:

• they meet the technical standards and regulations of these public telecommunications networks; and
• they comply with the applicable regulations.

Connections between private networks and public networks must be effected through written connection contracts.

According to the regulations on interconnection, connection charges are based on:

• cost, reasonably segregated by network components or by service stages directly related to the connection of telecommunications networks; and
• government policies on the telecommunications market and telecommunications services issued from time to time.

4.4 What rules and requirements govern the allocation and use of telephone numbers in your jurisdiction?

In Vietnam, telephone numbers are allocated by the Ministry of Information and Communication (MIC). Blocks of numbers are provided to licensed telecommunications enterprises by the MIC, which then assigns them to provide numbers to end customers. Telecommunications enterprises must submit reports to the MIC on their allocation plan for telephone numbers and codes and its status. Unused numbers and codes must be returned to the MIC.

Codes and numbers with special structures under the Number Storage Master Plan will be allocated via auction. The list of number storage to be auctioned is issued by the MIC from time to time, based on the master plan and the actual situation in the Vietnamese telecommunications market.

4.5 What rules and requirements govern number portability in your jurisdiction?

Number portability is governed by MIC Circular 35/2017/TT-BTTTT, which sets out the mechanism for subscribers to retain their phone numbers when changing network providers. Number portability must be provided by terrestrial mobile network service providers in a manner that ensures equality and non-discrimination among mobile subscribers. The previous network operator, however, has the right to reject a request for the transfer of the mobile network in the following circumstances:

• The subscriber information registered with the new network is inconsistent with that registered with the previous network;
• The subscriber has violated certain provisions of law or the transfer is banned by a competent state authority;
• A complaint or dispute has arisen between the subscriber and the previous network operator relating to the use of telecommunications services through the previous network; or
• The subscriber has breached a telecommunications service contract or other general contractual terms and conditions agreed with the previous network operator.

4.6 Are retail customer charges subject to price regulation in your jurisdiction?

Retail customer charges, among other telecommunications charges, are subject to price regulation in Vietnam under the authority of the MIC. Under the Law on Telecommunications, telecommunications charges are determined based on four key principles – one of which is to respect the rights of telecommunications enterprises in determining telecommunications charges and promote competition in this regard.

For telecommunications enterprises that have a dominant market position, before promulgating and applying telecommunications service charges, they must register the charge rates with the MIC.

Telecommunications enterprises are entitled to determine their own telecommunications service charges (apart from the abovementioned charges), but must notify them to the MIC before applying them.

4.7 Are retail customer terms and conditions subject to regulation in your jurisdiction?

Vietnam law classifies the following types of services, among others, as essential:

• terrestrial fixed telephone services;
• terrestrial mobile information services (pre-paid and post-paid); and
• internet access services.

For these services, the model general terms and conditions for retail customers must be registered with a competent state agency in charge of consumer protection before they are applied.

For other services (eg, social network services), if there are terms and conditions applicable to retail customers, these must adhere to the following requirements under the Law on Protection of Customers' Rights:

• The language must be clear and easily understood.
• The terms and conditions must be written in Vietnamese, unless the parties agree or the law provides otherwise.
• The terms and conditions must not contain provisions that have the effect of:
• • excluding the liability of the service provider;
  • restricting or excluding the consumer's right to complain and file a lawsuit;
  • allowing the service provider to unilaterally change the conditions of the contract agreed in advance with the customer or rules and regulations on the sale of goods or provision of services applicable to customers who buy and use goods or services, which are not specified in the contract;
  • allowing the service provider to determine unilaterally that the customer has failed to perform one or more obligations;
  • allowing the service provider to set or change prices at the time of delivery of the goods or provision of the services;
  • allowing the service provider to interpret the contract when its terms are construed differently;
  • excluding the liability of the service provider in case of the sale of goods or the provision of services through a third party;
  • forcing customers to comply with obligations even if the service provider has not fulfilled its obligations; or
  • allowing the service provider to transfer rights and obligations to third parties without the customer's consent.

Otherwise, the terms and conditions will be null and void.

5. Spectrum use

5.1 How is spectrum use authorised in your jurisdiction? Do any exemptions apply?

The use of spectrum is regulated under the Law on Radio Frequencies, which expressly stipulates that parties that wish to use radio frequencies must obtain the relevant radio frequency use licences. These include:

• radio frequency and equipment use licences;
• frequency band use licences; and
• frequency and satellite orbit use licences.

One of the key principles of the licensing procedure for frequency use licences is to ensure compliance with the Radio Frequency Master Plan. The prime minister and the Ministry of Information and Communication (MIC) are responsible for the approval of master plans. Frequency use licences can be issued in the following ways:

• direct licensing;
• licensing through examinations to select entities that are eligible for the right to use radio frequencies; and
• licensing through an auction of the right to use radio frequencies.

Under the current law, the use of radio frequencies is exempt from the licensing requirement if the radio equipment falls under scope of the following categories:

• short-range radio equipment that has limited output and is unlikely to cause harmful interference, which is provided for under the law; and
• radio equipment installed on board foreign seagoing ships or aircraft travelling through the Vietnamese territory, which are exempt from licensing under international agreements or treaties to which Vietnam is a contracting party.

5.2 What is the procedure for allocating spectrum in your jurisdiction?

As outlined in question 5.1, spectrum can be allocated through three licensing methods:

• direct licensing;
• licensing through examination; and
• licensing through an auction.

The procedures differ depending on the licensing method and the type of licence sought.

For example, if the radio frequency use licence is issued through direct licensing, the applicant must submit one application dossier to the MIC for assessment and approval. If the licence is issued through an auction or examination, the relevant regulations must be complied with.

5.3 How long does it typically take? What costs are involved?

The licensing timeframe varies depending on the licensing methods and the type of licence sought. The timeframe is statutory only. For example, in the case of a licence to use radio frequencies and equipment for ship stations, the timeframe is within 10 working days from receipt of a valid and complete application dossier.

The applicant may obtain a licence only once it has fully paid all fees and charges for the use of radio frequencies as prescribed.

Under the current regulations, the applicant must pay both lump-sum fees for the issue of a licence and annual charges for radio frequency use. These fees and charges vary according to the type of licence and range from VND 50,000 to VND 10 million.

5.4 What are the penalties for unauthorised spectrum use or breach of authorisation?

Under the current law, violations of the licensing requirements may incur a monetary fine ranging from VND 600,000 to VND 200 million. Additional penalties include confiscation of the licence. Remedial measures might include the enforced return of benefits that have been illegally obtained through the commission of the violation.

5.5 Can a spectrum authorisation be transferred? If so, what is the process for doing so?

Only the holder of a radio frequency use licence granted via auction can transfer the right to use the radio frequency to others. The conditions for transfer include the following:

• The transferer must hold a valid radio frequency use licence;
• The transferee must meet the conditions to participate in an auction or an examination to select entities that are eligible for the right to use radio frequencies, as specified in the applicable laws;
• The transfer must be approved in writing by the MIC;
• The parties to the transfer must fulfil all tax obligations under the tax regulations; and
• The legitimate rights and interests of the parties must be assured.

The procedure for the transfer of a radio frequency use licence is as follows:

• The party requesting the transfer must submit one application in the prescribed form to the MIC.
• If the party requesting the transfer is the licence holder, it must submit an application dossier with specific documents to the MIC for review and approval.
• Within 45 days of receipt of a complete application, the MIC will decide whether to allow the transfer of the radio frequency use licence.

6. Internet

6.1 What provisions apply to high-speed broadband in your jurisdiction? Are there any government incentives to promote broadband penetration?

High-speed broadband providers must comply with technical requirements under Circular 08/2019/TT-BTTTT ('Circular 8') of the Ministry of Information and Communication (MIC). Circular 8 sets out the quality criteria for broadband internet access services, which fall within the category of fixed terrestrial telecommunications services and consist of:

• terrestrial fixed broadband internet access services using FTTH/xPON technology (fibre-optic internet access services); and
• terrestrial fixed broadband internet access services using cable TV modem technology (cable TV internet access services).

Accordingly, service providers must:

• ensure the quality of terrestrial fixed broadband internet access services in accordance with the technical requirements;
• announce the quality of telecommunications services; and
• be subject to inspection by state management agencies.

They are also responsible for installing servers that meet the requirements set out in Appendix A of Circular 8 to facilitate the inspection and supervision of service quality.

In order to promote broadband penetration in Vietnam, on 21 January 2016 the prime minister issued Decision 149/QD-TTg approving the development programme for broadband telecommunications infrastructure. Among other things, the decision provides that the government will offer the incentives set out in the Law on High Technologies to enterprises that:

• research, develop and manufacture wireless and wire broadband terminal equipment; or
• develop mechanisms and policies to support enterprises in raising capital for the construction and operation of:
• • modem switching core networks;
  • transmission networks; and
  • access networks of high capacity, high speed and wide coverage.

It also sets a target to mobilise foreign development assistance loans for investment in the development of broadband telecommunications infrastructure, especially in rural, deep-lying, remote and island areas.

6.2 What net neutrality regulations apply in your jurisdiction? Are any exemptions and/or exceptions available?

The concept of net neutrality is not recognised under Vietnamese law. There are no explicit provisions of law that require internet service providers (ISPs) to ensure that all content can be transferred equally via their networks without any hindrance or technical barriers.

That said, some characteristics of net neutrality are reflected in the existing laws and regulations. In particular, ISPs are prohibited from illegally obstructing, disrupting or undermining the establishment of the telecommunications infrastructure or the lawful provision and use of telecommunications services. ISPs must also give priority to urgent information (eg, information concerning national security and defence, natural disasters or diseases). However, these requirements apply only to legal content. In the case of illegal content, ISPs must block or restrict access to such content (see question 6.3).

6.3 Are internet service providers (ISPs) obliged to block or restrict access to specific websites or types of content in your jurisdiction?

Under the Law on Cybersecurity, ISPs must block and/or restrict access to the following types of content:

• propaganda against the Vietnamese state;
• content that could incite riots, disrupt security or cause public disorder;
• information in cyberspace which causes embarrassment or which is slanderous – for example:
• • information which serious infringes the honour, reputation/prestige or dignity of other people; or
  • invented or untruthful information which infringes the honour, reputation or dignity of other agencies, organisations or individuals, or which causes loss or damage to their lawful rights and interests;
• invented or untruthful information about products, goods, money, bonds, bills, cheques or other valuable papers;
• invented or untruthful information in the sectors of finance, banking, e-commerce, e-payments, currency trading, capital mobilisation, multi-level trading or securities;
• content that:
• • relates to prostitution, social evils or human trafficking;
  • is lewd, depraved or criminal; or
  • undermines the traditions and customs of the Vietnamese people, social ethics or the health of the community; and
• invented or untruthful content which causes confusion among the peoples, resulting in:
• • loss or damage to socio-economic activities;
  • difficulties in the activities of state agencies or the performance of public duties; or
  • infringement of the lawful rights and interests of other agencies, organisations and individuals.

6.4 Is the use of virtual private networks permitted in your jurisdiction?

The use of virtual private networks (VPNs) is permitted in Vietnam.

On 18 November 2021, the MIC issued Decision 1844/QD-BTTTT setting out basic technical requirements for VPNs. These include requirements for:

• documents;
• system administration;
• error control;
• logs;
• processing performance;
• self-protection function;
• VPN services based on the SSL/TLS Protocol; and
• VPN services based on the IPSec Protocol.

VPN service providers are advised to comply with the above requirements.

6.5 In what circumstances will ISPs be held liable for offending content carried on their networks? What defences are available?

ISPs will be held liable for offending content carried on their networks if they:

• do not prevent the sharing of information and delete prohibited content (see question 6.3) on their networks within the timeframe specified by the authorities;
• do not save or maintain system logs for the purposes of investigating and dealing with violations; or
• continue providing services to parties that upload or post prohibited content on their networks, in breach of a request by the authorities.

ISPs must comply strictly with the requests of the authorities to avoid being held liable for the violation. However, in certain cases where the ISP cannot comply with the request (eg, force majeure), it must submit its explanation in writing to the authorities, which have sole discretion to accept or reject such explanation.

6.6 How are digital platforms regulated in your jurisdiction?

Overall, the MIC requests digital platforms owners to comply with the following requirements:

• Develop digital platforms that can protect themselves with the tools to remove information that is contrary to the regulations and ensure information security;
• Implement measures to ensure the security of personal information, account information, messages, passwords and transaction history;
• Observe data protection requirements, including the following:
• • Publish all measures implemented to process and protect personal information;
  • Only collect personal information with the consent of the data subject regarding the scope and purpose; and
  • Do not provide, share or disclose users' personal information to third parties, unless agreed by the data subjects or otherwise requested by the competent authority;
• Actively investigate, prevent and address violations committed through the platform in accordance with the agreements, contracts and policies on service provision;
• Refuse or cancel service provision to parties that post illegal content;
• Establish a mechanism for users to report or complain about:
• • fake news;
  • information that insults an individual's honour or invades anyone's private life; or
  • other information that violates the law; and
• Publish policies and procedures to help users handle issues relating to data security.

In addition to the general requirements applicable to all platforms, each type of platform is subject to separate obligations (eg, e-commerce platforms are subject to e-commerce requirements; banking platforms are subject to banking regulations).

7. Media

7.1 What rules and requirements apply to public broadcasters in your jurisdiction?

The Law on Press and Decree 06/2016/ND-CP ('Decree 06') set out the general requirements for the operation and activities of public broadcasters in Vietnam. They must obtain certain permissions and certifications from the Ministry of Information and Communication (MIC). Public broadcasters must also ensure that the content and quality of their services comply with the law. Public broadcasters must also broadcast TV programmes relating to political missions or presenting national and local essential communications information. These mandatory programmes are specified in a list attached to Circular 18/2016/TT-BTTTT of the MIC. Public broadcasters are subject to governance by the MIC.

Public radio broadcasters must comply with the MIC's frequency and channel allocation under Circular 37/2017/TT-BTTTT.

Public broadcasters are also subject to specific rules governing their powers, duties, tasks and responsibilities. For example, the government has issued:

1. Decree 60/2022/ND-CP that governs the operation of Vietnam Television (VTV);
2. Decree 03/2018/ND-CP that governs the operation of Voice of Vietnam; and
3. Decree 118/2017/ND-CP that governs the operation of the Vietnam News Agency.

7.2 What rules and requirements apply to commercial broadcasters in your jurisdiction?

The Law on Press and Decree 06 set out the general requirements for the operation and activities of commercial broadcasters in Vietnam. Commercial broadcasters must:

• obtain licences from the MIC;
• ensure that both the content and quality of their services are compliant with the law; and
• comply with requirements relating to issues such as:
• • channel logos;
  • copyright;
  • channel lists; and
  • programme editing.

Commercial broadcasters can select Vietnamese and foreign television channels, and on-demand and value-added services. However, commercial broadcasters must carry certain channels to provide essential information and state political information. The number of foreign channels cannot exceed 30% of the total channel lists and all channels must comply with Vietnamese culture.

7.3 Do any 'must-carry' obligations apply in your jurisdiction? If so, what are they and how are they funded?

'Must-carry' obligations are set out in Decree 06. In particular, the government requires broadcasters (both public and commercial) to air seven must-carry channels on a free-of-charge basis on all platforms, including cable, satellite and internet. These must-carry channels are channels that provide essential information and state political information. They include VTV1, VTC1, Vnews, ANTV, QPVN, QHVN and Nhan Dan (Appendix 1 attached to MIC Circular 18/2016/TT-BTTTT).

7.4 Do any local content requirements apply in your jurisdiction? Do any restrictions apply to foreign content? What exemptions and/or exceptions are available?

In general, when providing media services (broadcasting and press) in Vietnam, service providers must refrain from posting/releasing/publishing prohibited content – for example:

• content which causes division among different classes of people or between the people and the government, the armed forces, political organisations or political-social organisations;
• content which causes hatred, discrimination, divisions, ethnic separatism or infringement of equal rights of ethnic communities in Vietnam; and
• content which incites war against the independence, sovereignty and territorial integrity of Vietnam.

Depending on the type of media service, different sector-specific requirements will apply to the broadcast content. For example, to provide foreign channels to subscription service users, the content must comply with the following requirements:

• The foreign channel must contain healthy broadcasting content that is consistent with Vietnamese culture and comply with Vietnamese laws on press activities;
• Foreign add-on advertisements must not be broadcasted. Advertisements (if any) must be produced in Vietnam and comply with Vietnamese laws on advertising and the agency licensed to edit foreign channels must be responsible for the content of advertisements; and
• The number of foreign channels broadcasting on paid TV in Vietnam must not exceed 30% of the total number of channels.

These requirements are mandatory and no exceptions are available.

7.5 What other content requirements and restrictions apply in your jurisdiction? Do these vary depending on the distribution channel (e.g., traditional broadcast media versus new media)?

Apart from the requirements on broadcasting content mentioned in question 7.4, media service providers in Vietnam must comply with other requirements on matters such as copyright charges (royalties) and translation of foreign content. The requirements vary according to the distribution channel. For example, in relation to the provision of foreign channels, foreign broadcasters that distribute channels for which a royalty must be paid must:

• have their authorised agents apply to provide such channels; and
• fulfil their financial obligations to the Vietnamese government.

7.6 How is advertising regulated in your jurisdiction? Does this vary depending on the distribution channel?

The general regulations on advertising are set out in the Law on Advertising. Depending on the distribution channel, further advertising requirements will apply. For example:

• for traditional channels, the total duration of ads for audio newspapers and video newspapers must not exceed 10% of the day's total broadcast time, except in the case of advertising channels or advertising programmes; and
• for paid TV, the total duration of ads must not exceed 5% of the day's total broadcast time, except for advertising channels or advertising programmes.

8. Competition

8.1 What competition-related provisions (eg, structural or functional separation requirements; significant market power requirements; media plurality rules) apply in the following sectors?

The Law on Competition has general application and thus covers:

• all enterprises and trade associations in Vietnam;
• overseas enterprises and associations registered in Vietnam in every sector;
• public utilities and state monopoly enterprises; and
• state administrative bodies.

The Law on Competition supersedes all other enacted legislation in Vietnam in relation to anti-competitive practices and acts of unfair competition.

Under the Law on Competition, there are five broad categories of prohibited anti-competitive practices:

• agreements that substantially restrict competition;
• abuse of a dominant or monopoly position;
• economic concentrations that substantially restrict competition;
• acts of unhealthy competition; and
• anti-competitive behaviour/decisions by official or state administrative agencies.

(a) Telecommunications

Apart from the acts proscribed under the Law on Competition, telecommunications enterprises that dominate the market and possess essential infrastructure must refrain from the following acts:

• dividing telecommunications services among them for the purpose of unfair competition;
• exploiting their telecommunications networks and essential infrastructure to impede market penetration or restrict or cause difficulties in the provision of telecommunications services by other telecommunications businesses;
• using information obtained from other telecommunications businesses for the purpose of unfair competition; or
• failing to promptly provide to other telecommunications businesses technical information on essential infrastructure and relevant commercial information necessary for the provision of telecommunications services.

Telecommunications enterprises that dominate the market and possess essential infrastructure must keep separate statistics and accounting records on the services they provide to determine the costs of those services.

In each period to be determined by the Ministry of Information and Communication (MIC), the MIC will:

• promulgate:
• • a list of telecommunications enterprises that dominate the market for important telecommunications services that are subject to competition management by the state; and
  • a list of telecommunications enterprises that possess essential infrastructure; and
• design and apply management measures to promote competition and ensure fair competition in the provision of telecommunications services.

Before entering into an economic concentration, telecommunications enterprises with a combined market share of 30% to 50% of the relevant service market must notify the MIC.

(b) Internet

The provision of internet services is subject to the same regulations on competition as outlined in question 8.1(a).

(c) Media

There are no sector-specific regulations that apply to competition in the media sector. Providers of media services must comply with the general regulations on competition set out in the Law on Competition.

(d) Social media

There are no sector-specific regulations that apply to competition in the social media sector. Providers of media services must comply with the general regulations on competition set out in the Law on Competition.

8.2 To what extent can the national competition regulator intervene in the relevant sectors? What is the interplay between the competition regulator and the various sectoral regulators?

The state authority that is primarily responsible for enforcement of the Law on Competition is the Vietnam Competition Authority (VCA) within the Ministry of Industry and Trade (MOIT). The main responsibility of the VCA is to monitor acts which could be deemed anti-competitive or could promote unfair competition. The VCA is entitled to enforce anti-competition regulations across various sectors.

Specifically, in the telecommunications sector, the MIC is the sectoral regulator and is tasked with:

• actively coordinating with the MOIT to manage competition in the establishment of telecommunications infrastructure; and
• ensuring that telecommunications services are provided in accordance with the Law on Competition.

The Vietnam Telecom Authority (VNTA) under the MIC has jurisdiction over competition cases in the relevant sectors. Parties which are subject to VNTA investigations must abide by its decisions, even if they disagree with its findings; in that case they have the right to complain and to file suit under the provisions of law.

8.3 How are mergers and acquisitions in the relevant sectors treated from a competition perspective?

(a) Telecommunications

Due to high entry barriers, Vietnam's telecommunications market is highly concentrated, with a handful of dominant market players (eg, VNPT, Mobifone and Viettel). However, following the promulgation of pro-competition regulations, the market has become much more competitive and liberal. In terms of mergers and acquisitions, the Vietnamese government has adopted a supportive policy to help promote greater specialisation and professionalism in the industry, based the efficient use of telecommunications resources and infrastructure. This is explicitly provided in Prime Ministerial Decision 32/2012/QD-TTg, which mandates that the telecommunications market will be restructured in order to reorganise telecommunications enterprises – especially inefficient state-owned enterprises – through the transfer, sale or merger of such enterprises.

(b) Internet

M&A activity in the internet provision sector is treated in the same way as in the telecommunications sector.

(c) Media

All print and broadcasting media enterprises in Vietnam are state run, except for certain types of service (ie, paid radio and TV services). As in the telecommunications sector, Vietnam's regulators adopt a supportive approach towards M&A activity in the media sector. The policy of the regulator is to restructure the paid TV market in a selective manner, whereby only businesses with extensive network infrastructure and significant investment capacity will be granted licences. Accordingly, it is predicted that small-scale cable/paid TV businesses will be forced to enter into M&A deals to meet the licensing conditions.

(d) Social media

There has been little M&A activity in the social media sector in Vietnam thus far. Therefore, the regulator's stance such activity remains unclear.

8.4 What other specific challenges or concerns do the relevant sectors present from a competition perspective?

From a competition perspective, although recent reforms to the legal framework have been increasingly pro-competition, the general TMT laws remain restrictive, particularly in relation to telecommunications and media. For example, the telecommunications market is highly concentrated and most key players are state-run enterprises. As a result of government policies on the efficient use of telecommunications resources and infrastructure. small and medium-sized enterprises with limited telecommunications and financial resources face considerable challenges when operating in Vietnam. Similarly, the traditional media in Vietnam are solely controlled and managed by the state; thus, private enterprises have very limited opportunities in the media sector.

9. Data security and cybersecurity

9.1 What data security regimes apply in the following sectors?

The Law on Cyber Information Security is the most comprehensive statute that provides a general framework for the collection, use and disclosure of personal data across all sectors in Vietnam. However, the regulations on data security are still fragmented and dispersed throughout a number of legal instruments, such as:

• the Constitution;
• the Civil Code;
• the Law on the Protection of State Secrets;
• the Law on e-Transactions;
• the Law on Telecommunications;
• the Law on Information Technology;
• the Law on Press; and
• Decree 72/2013/ND-CP on the management, provision and use of internet services and online information (as amended).

The regime for the protection of personal data outlined in the Law on Cyber Information Security applies to both:

• Vietnamese agencies, organisations and individuals; and
• foreign organisations and individuals directly involved in or related to cyber information security activities in Vietnam.

Therefore, both the private and public sectors are subject to personal data protection obligations under the Law on Cyber Information Security. The two main subjects regulated by the Law on Cyber Information Security are:

• data subjects who are identified by or identifiable from personal data; and
• data processors – that is, individuals or entities that process personal data.

The Law on Cyber Information Security sheds light on a wide range of data protection concepts, such as:

• information security;
• networks;
• information systems;
• national important information systems;
• information system owners;
• information security violations;
• network information security incidents;
• network information security risks;
• network information security risk assessments;
• network information security risk management;
• malware;
• malware filtering system damage;
• electronic addresses;
• information conflicts;
• personal information;
• personal information subjects;
• personal information processing;
• civil cryptography;
• network information security products; and
• information security services networks.

9.2 What cybersecurity regimes apply in the following sectors?

The cybersecurity regime is comprised of various statutes. However, the two substantial legal instruments are:

• the Law on Cybersecurity; and
• Decree 53/2022/ND-CP guiding the implementation of the Law on Cybersecurity.

The Law on Cybersecurity governs:

• the protection of national security and public order; and
• safety in cyberspace and the responsibilities of related organisations and individuals.

The Law on Cybersecurity governs a broad scope of fields and businesses, covering the connected networks of:

• information technology infrastructure;
• telecommunications;
• Internet;
• computer networks;
• information systems;
• information processing and control systems; and
• databases through which people conduct social acts without being limited by space or time.

The principal aspects of the Law on Cybersecurity are:

• assurance of the safety and security of cyber information;
• protection of personal information in the network environment;
• protection of information systems and infrastructure;
• production, trading and use of civil cyphers (ie, cryptographic techniques and encrypted products that are used to ensure the confidentiality or authentication of information which does not constitute state secrets);
• standards and technical regulations on information security;
• provision of information security services;
• prevention of computer viruses, spam and harmful software; and
• emergency responses.

One of the notable requirements under the Law on Cybersecurity are the provisions on data localisation and local presence in Vietnam, as specified under Decree 53. In particular, under certain conditions, providers of cross-border services relating to telecommunications networks and cyberspace must retain data and establish branches or offices in Vietnam.

9.3 What other specific challenges or concerns do the relevant sectors present from a data security/cybersecurity perspective?

The data protection and cybersecurity regimes in Vietnam are still in their infancy. Therefore, there are still inconsistencies and discrepancies in the legislative provisions. Given the lack of a consolidated and comprehensive statute governing data protection, various loopholes and divergent practices remain. While some improvements have been made and others are anticipated, there are still gaps between the Vietnamese regime and those in other developed countries and regions (eg, the EU General Data Protection Regulation). The Vietnamese government is still working to reshape the legal framework to fill these gaps and align with international standards on data and cybersecurity protection.

10. Trends and predictions

10.1 How would you describe the current TMT industry landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

In recent years, the TMT landscape in Vietnam has been evolving at a robust pace. This trend is expected to continue in the coming years as Vietnam is shifting towards a more liberalised market with increasingly diversified players from different countries, leading to the growth of TMT-related sectors. Given this developing landscape, Vietnam's digital economy is considered to afford significant potential. However, Vietnam also faces various challenges in this regard, including:

• cumbersome administrative procedures;
• a lack of high-quality human resources;
• a lack of supportive policies, institutions and regulations; and
• limited access to investment capital.

To address the shortcomings of this regulatory environment, Vietnam's regulators have taken various substantive measures in an effort to create a more supportive and favourable environment for the development of the TMT landscape.

This progressive approach is reflected in a number of legislative reforms. The most notable of these is the proposal to amend the Law on Telecommunications, which would supplement and broaden its scope to encompass:

• more telecommunications operations;
• data centres;
• Internet of Things connectivity;
• digital connection IDs; and
• telecommunications company management, including data centre service business and information as a service business.

Among other things, the amendments also aim to:

• accelerate the development of content services in the telecommunications ecosystem; and
• create a more friendly and efficient licensing regime.

The Ministry of Information and Communication, which is responsible for drafting and developing the amendments, has been collecting and receiving contributions from relevant government bodies, enterprises, associations and experts on the latest reforms.

In the media sector, another noteworthy reform is the draft decree amending and supplementing Decree 06/2016/ND-CP on the management, provision and use of radio and TV services. The draft decree contains various important adjustments relating to radio and TV service management policies, such as:

• licensing;
• advertising on foreign channels;
• editing and translating foreign programmes;
• radio and TV channels; and
• increased opportunities for over-the-top services in Vietnam.

Another notable reform is the draft Decree on Personal Data Protection, which is set to be Vietnam's first-ever comprehensive statute on personal data protection. The decree:

• is expected to regulate the collection, receipt, transmission and use of personal data; and
• will apply to every agency, organisation and individual involved in the processing of personal data which originates from Vietnam, including both local and foreign processors, whether based in Vietnam or abroad.

The draft decree is expected to be promulgated and take effect in late 2022 or early 2023.

11. Tips and traps

11.1 What are your top tips for TMT players seeking to operate in your jurisdiction and what potential sticking points would you highlight?

The TMT sector in Vietnam is heavily regulated, monitored and controlled by the competent authorities. In addition, the legal framework on TMT is undergoing improvements, amendments and updates, which may soon lead to changes in the applicable laws and regulations. Therefore, TMT players seeking to operate in Vietnam should:

• stay up to date on the relevant laws and regulations to promptly acknowledge and comply with them;
• adhere to the instructions, requests, recommendations and guidance issued by the authorities from time to time;
• closely work with local business partners that understand the market; and
• respect cultural differences and proactively understand and adapt to the specific business environment and culture in Vietnam.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.