Latest Posts:
Search for:

Analyzing critical legal trends and developments across data, cyber, AI and digital regulations from around the world and beyond borders

In Cyber

Vietnam: Latest Update on Draft Law on Telecommunications (Amended)

by 2 Mins Read

On 19 June 2023, the Vietnam Authority of Telecommunications (“VNTA”) under the Ministry of Information Communication (“MIC”) held a workshop to collect relevant stakeholders’ comments on the management policies towards data center services (‘IDC‘), cloud computing services (‘Cloud‘), and OTT services in the Draft Law on Telecommunications (‘Draft Law’).

Below are some notable takeaways from the consultative meeting:

  • Different from the very first version of Draft Law (Oct 22 Version), which introduced broad requirements on the providers of data centers (‘DC’), cloud computing (‘Cloud’), and/or OTT services, at the workshop yesterday, the MIC confirmed that they are pursuing a soft management approach (“light-touch regulation”). In particular, the post-examination mechanism will be applied in regulating the provision of aforementioned services. The Ministry’s leader also said that the primary purpose of the Draft Law is to promote the development of the industry and create an official legal framework for unregulated services to better serve relevant stakeholders (investors, service providers, etc.).
  • Per the wording of the latest Draft Law (April Version submitted to the NA), though there are no pre-requisite business conditions for the said services, the Government is assigned to provide the details at the decree level. If so, we cannot discount the risk that the drafting team may re-introduce potential burdens against the businesses of DC, Cloud, and OTT services.
  • However, the Deputy Minister verbally confirmed that there would be no foreign ownership restrictions for investment in DC, Cloud, and/or OTT services in Vietnam since, currently, these services are regarded as not being under Vietnam’s WTO Commitments.

Listening to the stakeholders’ comments at the workshop, the MIC agreed to revise the Draft Law by excluding the DC and Cloud from the definition of telecom services. However, for the OTT service, it appears that the drafting team maintains its strong view by considering OTT as a telecom service.

According to the legislative agenda, the Draft Law will be tentatively passed in October / November 2023.

Categories:
Tags:
Author

Hung Tran is the managing partner of BMVN International LLC (strategic alliance of Baker McKenzie Vietnam) and the chair of the Commercial, Data, IPTech and Trade Practice of Baker McKenzie Asia Pacific offices. For years, he has been constantly ranked as a leading IP, TMT, and Data Protection lawyer by numerous researchers such as Chambers Global, Chambers Asia, Legal 500 Asia Pacific. He regularly writes articles concerning pressing legal issues in both English and Vietnamese, and his works have been published regularly in various reputable publications. He has assisted the government in reviewing and revising the IP Law, the IP provisions under the country’s criminal code, the draft e-Transaction Law, and the first draft Personal Data Protection Decree, etc. He is also a respected presenter in the area of IP, Franchising, Data Privacy, and Entertainment Laws. In addition to authoring many publications, Mr. Tran has lectured at Waseda University School of Law (Japan), Vietnam-German University, Hanoi Law University, Diplomatic Academy of Vietnam, Foreign Trade University, an international MBA Program (CFVG) and IP laws for the Professional Training School of the Ministry of Industry and Trade. He used to serve as the Chairman of the Legal Committee of Hanoi American Chamber of Commerce.

Related Posts