On 24 November 2023, the National Assembly of Vietnam approved the New Law on Telecommunications (“New Telecommunication Law”), which will be effective from 1 July 2024.This new law will replace the current Law on Telecommunications 2009 that has been effective since 2010.
- New Telecommunication Services
The New Telecommunication Law introduces regulations for three new services: data centre services, cloud computing services, and over-the-top (OTT) telecom services. These additions are essential for adapting to the ongoing digital transformation.
The New Telecommunication Law imposes no restrictions on foreign ownership for these services. Thus, foreign investors can establish wholly foreign-owned companies in Vietnam to offer data centre, cloud computing, and OTT telecom services.
Moreover, these services, which are distinct from traditional telecom services, will be regulated under a “light-touch” approach to encourage their growth. Providers will not need a telecom license but will follow registration or notification procedures, awaiting detailed guidance from the Government.
- Providers of New Telecommunication Services
The New Telecommunication Law outlines specific rights and obligations for providers of the new services:
(a) Data Centre and Cloud Computing Services
Service providers are prohibited from tracking or monitoring user information unless required by competent authorities.
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- Cloud computing service providers generally will not be liable for the content they process.
- Data centre service providers must certify that their data centres comply with standards and regulations set by the Minister of Information and Communications before commencing operations.
(b) OTT Telecom Services
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- OTT telecom service providers must inform users and obtain consent before accessing features on their devices, if necessary.
- OTT service providers are required to store and manage user information provided during service contracts in accordance with Government regulations.
The Government is expected to issue a decree to provide further guidance on the provision of these services, including the requirements for foreign entities offering these services to users in Vietnam on a cross-border basis.