Commencing 8 September 2001, all internet activities in Vietnam are subject to the new Internet Regulations enacted under a Government Decree No 55/2001/ND-CP dated 23 August 2001. These new Regulations have replaced the Provisional Regulations of 1997 on the management, establishment and use of the Internet in Vietnam.

This is the first time since the date Vietnam logged onto the internet four years ago that there is an official legal framework in place for internet activities.

What is most welcome under these new Regulations is that Internet service provider business is open up for private sectors and foreign investors. Internet exchange provision business is still reserved only for state owned enterprises or enterprises in which the Vietnamese State holds absolute majority shares.

Internet exchange providers are defined under the Regulations as those businesses which are responsible for internet infrastructure, gateways to worldwide internet and provide connection between local the internet service providers and with the worldwide internet via their international gateways. Internet service providers are defined as those businesses which provide users access to the internet and other online applications or services.

Foreign investors, who wish to engage in internet services must first obtain investment license under the Law on Foreign Investment in Vietnam and then obtain internet service provision license from the General Department of Posts and Communication (DGPT).

Internet content provision services are subject to license issued by the Ministry of Culture and Information. Information put online, transferred via internet or received from the internet will be subject to the Press Law, Publishing Law, State Secrets Protection Ordinance and intellectual property laws and regulations. Information containing materials which are against the interests of the State of Vietnam or the national security of Vietnam, or contrary to Vietnamese morals, culture or customs or in violation of laws and regulations are strictly prohibited. It is understood that the information which is banned from online publication includes, but is not limited to, anti-Vietnamese government materials, defamation of Vietnamese leaders and national heroes, distortions of Vietnamese history, pornography, sex materials and the like.

Entities or individuals, who provide or use internet services will be responsible for the information contents that they have put, stored, down loaded or transferred on line.

Under the new Regulations, private internet access services such as cyber cafes, internet access shops etc. are no longer allowed. These businesses will be compelled to enter into agency contracts with licensed internet service providers. Hotels which provide internet access in its hotel facility, will be required to do the same.

The new legislation has placed tougher penalties and higher fines for violation of the Regulations and cyber crimes. The highest fine, which is approximately US$ 5000, will be imposed on any act of establishing internet systems or providing internet service without license. Virus proliferation via internet may be fined up to US$ 3300. Online pornography may be fined up to US$ 1300. More serious cyber crimes or violation of the Vietnamese laws will be subject to criminal prosecution.

The new legislation, unfortunately however, contains only very general regulations on state management of internet access providers, internet service provisions and the preparation of internet content. It has provided general licensing procedures for Internet businesses and general rights and obligations of internet service providers and users. Further guidelines and regulations of ministries and other governmental agencies on implementation of this new Regulations are not yet enacted. It is reported that dozens of applications from local businesses have been filed to DGPT for licenses since the new legislation took effect, however, none have been granted due to the lack of implementation guidelines and regulations. Ministries are still debating the content of the sublaws and regulations.

Currently in Vietnam there are only 160,000 internet subscribers. 5 internet service provider licenses have been granted to state owned companies but only 4 have actually in operation. The countries targets 1.2 million internet subscribers by 2005.

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.