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In Digital Evolution

Vietnam: Update on Gaming Law and Enforcement Trend

by 2 Mins Read

The Vietnam’s Ministry of Information and Communications (“MIC”) recently held a meeting on payment methods in online gaming to discuss the current legal landscape and compliance situation in Vietnam.

Here is a quick update regarding the gaming regulation and enforcement trend.

1.         More aggressive actions against unlicensed mobile gaming apps

By and large, the gaming industry would likely expect more aggressive enforcement actions from the MIC and relevant authorities.

Below are the key takeaways from the MIC’s approach:

  • While local game publishers are regulated by laws, many cross-border ones fail to comply with local requirements, notably not using registered payment gateways, leading to a huge loss in tax collection.
  • For in-app purchases, the platforms will be required to provide information concerning the purchases, and may be ordered to suspend the transactions concerning unlicensed game publishers.
  • The MIC will request (i) the State Bank of Vietnam to take measures to stop payment intermediaries to allow unlicensed game publishers to make transactions, and (ii) the platforms to stop working with payment intermediaries that continue to work with unlicensed game publishers.
  • The MIC will communicate to local payment intermediaries on a monthly basis, and order them not to work with unlicensed game publishers.
  • The MIC will cooperate with the Ministry of Public Security and relevant authorities to handle violations concerning payment, promotions, gambling games, etc.
  • Unlicensed payment intermediaries and game publishers may be imposed with a website/Internet access blocking order from the MIC.

2.         Special consumption tax to be imposed on game service providers

The Vietnam’s Ministry of Finance (“MOF”) recently made public a draft law amending the Law on Special Consumption Tax, in which they propose online gaming services will be subject to special consumption tax. The MOF is collecting comments from relevant authorities, agencies, and stakeholders to finalize a draft law amending the Law on Special Consumption Tax which will, once coming to life, impact on the gaming industry.

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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.

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