New Regulatory Guidelines for Telecom Sector

Vietnam’s Decree 163 offers clear steerage on rising providers like information facilities, cloud computing, and OTT telecom providers, efficient January 1, 2025. Its provisions strengthen the implementation of the 2024 Telecommunications Legislation.

On December 24, 2024, the Vietnamese authorities issued Decree No. 163/2024/ND-CP (hereinafter, Decree 163), providing steerage for implementing the Telecommunications Legislation that took impact on July 1, 2024.

Changing Decree No. 25/2011/ND-CP and its amendments, Decree 163 is a crucial addition to Vietnam’s telecommunications regulatory framework. It introduces clear steerage on rising providers like information facilities (DC), cloud computing, and over-the-top (OTT) telecom providers, with these provisions turning into efficient on January 1, 2025.

Key highlights of Vietnam’s Decree 163 and affect for telecom sector

Classification of latest providers

FIND BUSINESS SUPPORT

Decree 163 brings vital adjustments by classifying DC, cloud computing, and OTT communication providers as value-added telecom providers. This classification aligns them with conventional value-added providers reminiscent of electronic mail and web entry. By formally defining these new providers, the federal government establishes a transparent regulatory framework to supervise their operation and integration into Vietnam’s telecommunications infrastructure.

This transfer ensures that these providers are topic to the identical regulatory oversight as different telecom providers, selling transparency, competitors, and shopper safety. It additionally displays Vietnam’s recognition of the rising significance of cloud and information heart providers in a digitally pushed economic system.

Cross-border service provision

Decree 163 simplifies the method for offshore suppliers of telecom providers who want to serve Vietnamese customers. In contrast to earlier laws, these suppliers are now not required to signal industrial agreements with licensed native telecom firms. As an alternative, they have to notify the Vietnam Telecommunications Authority (VNTA) utilizing prescribed procedures earlier than providing providers.

This transformation lowers limitations to entry for overseas telecom firms, encouraging funding and fostering innovation in Vietnam’s telecom sector. Nonetheless, it additionally maintains regulatory oversight by requiring detailed notifications, guaranteeing that offshore suppliers function inside Vietnam’s authorized framework.

Obligations for offshore suppliers

Offshore suppliers of fundamental web telecom providers, in addition to DC and cloud service suppliers, are topic to particular obligations underneath Decree 163. These embrace:

• Notification to VNTA: Suppliers should submit company particulars, descriptions of their providers, and speak to info. Any adjustments to those particulars should even be promptly reported.
• Information administration: Offshore suppliers are required to retailer consumer information and adjust to Vietnam’s cybersecurity legal guidelines. This contains sustaining information of consumer info, reminiscent of names and telephone numbers.
• Safety measures: Suppliers should droop providers in circumstances of nationwide emergencies or when instructed by competent authorities. They have to additionally block entry to dangerous or unlawful content material upon request.
• Consumer safety: Suppliers are prohibited from disclosing personal consumer info besides in legally permissible circumstances. They have to additionally get hold of consumer consent earlier than accessing information on customers’ gadgets.

Moreover, suppliers providing DC or cloud providers to state businesses face an added requirement: the unique storage of information inside Vietnam. This necessitates the institution of native services for information storage, guaranteeing the safety and sovereignty of state information.

Additionally Learn: Vietnam Nationwide Meeting Approves Legislation on Information

Subscriber info administration

Decree 163 introduces stricter measures to handle and confirm subscriber info. Telecom suppliers should confirm subscriber identities by matching particulars with the Nationwide Inhabitants Database. Different strategies, reminiscent of one-time authentication codes (OTP) and video name verification, are additionally required to make sure accuracy and stop fraudulent actions.

These measures goal to boost belief and safety throughout the telecom sector, offering higher safety for customers whereas additionally guaranteeing compliance with authorized necessities.

Expanded regulatory scope

Along with regulating rising providers, Decree 163 introduces a framework for machine-to-machine (M2M) communication, which is assessed as a fundamental telecom service. This growth lays the groundwork for the regulation of Web of Issues (IoT) operations, that are more and more integral to trendy industries. By addressing M2M communication, Vietnam goals to remain forward in managing technological developments and their implications.

Business implications

FIND BUSINESS SUPPORT

The implementation of Decree 163 is a transparent sign of Vietnam’s dedication to fostering a good and aggressive telecommunications market. By offering detailed steerage on new providers, the federal government goals to steadiness innovation with regulatory oversight, making a steady setting for companies and customers alike.

The removing of overseas possession caps for onshore suppliers is especially noteworthy. This transfer permits 100% foreign-owned enterprises to function in Vietnam, making the market extra enticing to worldwide traders. It additionally aligns with Vietnam’s broader efforts to combine into the worldwide digital economic system and appeal to overseas direct funding (FDI).

Nonetheless, the decree additionally alerts elevated regulatory scrutiny. Telecom enterprises, particularly offshore suppliers, should conduct thorough compliance critiques to align their operations with the brand new necessities. Failure to conform might end in vital penalties or restrictions, highlighting the significance of proactive adaptation.

Conclusion

Decree 163 units a brand new regulatory benchmark for Vietnam’s telecom business. It addresses trendy challenges reminiscent of cross-border service provision, information safety, and subscriber fraud, whereas offering a framework for rising applied sciences like IoT and M2M communication. Enterprises working in Vietnam’s telecom sector should assess their compliance with these laws and adapt shortly to keep away from operational disruptions.

With its clear give attention to fostering innovation, guaranteeing safety, and defending customers, Decree 163 positions Vietnam’s telecommunications sector for sustained development and competitiveness. As digital transformation continues to speed up, this regulatory readability will play a essential function in shaping the way forward for Vietnam’s digital economic system.