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In 2021, the Vietnam Ministry of Information and Communications (MIC) published the outline of the draft Telecoms Law for public consultation.

Earlier this week, the MIC published the full version of the draft Telecoms Law for a two-month public consultation.

The deadline for comment submission to the MIC is 27 December 2022.

The draft Telecoms Law is set to replace the existing law and consists of 79 articles and 11 chapters. The lawmakers mainly aim to broaden the scope of the existing law to cover IoT devices, data center services, cloud-computing businesses, and OTT communication services in the draft law. Importantly, the draft law has clear extra-territorial applicability concerning those new services.

Below is a summary of notable new requirements under the draft Telecoms Law:

  • OTT communication service (referred to as “information communication service not using telecom number storage” in the draft law):
  • The draft law’s wording suggests that only standalone OTT messaging or calling apps will be viewed as OTT communication service. In other words, OTT messaging or calling functions of a social network, which are non-essential functions of another service, will not fall into this category.
  • Offshore service providers will have to, among other things, (i) notify the MIC of its contact point, (ii) notify its users of emergency numbers, (iii) ensure the users’ access to the emergency numbers, and (iv) waive fees for calls to the emergency numbers.
  • The draft law also suggests that OTT communication service is a telecom service. To this end, the draft law requires that the cross-border provision of any telecom services must be rendered based on a commercial agreement with a licensed Vietnamese telecom provider (i.e., foreign service providers must contract with a local entity in order to provide services across borders into Vietnam). Furthermore, the Vietnamese telecom provider contracting with a foreign service provider will have to register the agreement form with a competent state authority.
  • Data center and cloud-computing services: the service provider must register via an online portal of the MIC and comply with a set of requirements that will later be clarified by the Government. Other notable obligations include protecting users’ information, taking down illegal content, and notifying local state agencies upon detection of illegal activities such as service abuse.
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.