Answer ... (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:
- party agencies;
- state agencies;
- social-political organisations;
- social-political professionals;
- social organisations;
- social-occupational organisations; and
- 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.