Regulations on Investment in Telecommunications Services in Vietnam

The field of telecommunications has appeared in Vietnam for more than 30 years and has helped the business environment and social life of Vietnam to develop. The process of liberalizing the telecommunications sector in Vietnam has led to the expansion of the telecommunications network and has become an attractive field for investors to set up company in telecom service, internet service, or join with Vietnamese partner on business cooperation contract in the same fields.

 

Telecommunication Lawyers in Vietnam

Currently, telecommunications services are not just telephones and telex, but variy with many types from simple to complex such as audio, video, data transmission services,… Besides the conveniences brought in life, telecommunications services have really become one of the important infrastructures of the economy. However, Vietnam government also impose certain requirements on foreign investors entering Vietnam in this sector.

Specifically, at present, foreign investors can only participate in investments in the form of joint ventures or business cooperation contracts with Vietnamese enterprises to provide telecommunications services. However, for the provision of services with network infrastructure, the partner in which the investor joins the joint venture must be a licensed telecommunications service provider in Vietnam. In addition, foreign investors are also limited on the percentage of charter capital in joint ventures. Accordingly, for services without network infrastructure, foreign investors own not more than 65% of charter capital and for services with network infrastructure, foreign investors do not own more than 49% legal capital of the joint venture.

On the other hand, foreign investors participating in business cooperation contracts will be able to sign a new agreement or switch to another form of presence with conditions no less favorable than those they are currently receiving. Furthermore, an organization or individual that already owns more than 20% of the charter capital or shares in a telecommunications enterprise may not own more than 20% of the charter capital or shares of another telecommunications enterprise doing business in the same company a market for telecommunications services.

Therefore, if the investor meets the above conditions, the investor will carry out the procedures for establishing an economic organization. Like other foreign-invested organizations, the establishment will go through two stages: investment registration and business establishment. For foreign investment projects in the business of telecommunications services, it is necessary to receive the investment approval of the Prime Minister. Accordingly, the investor submits the application for approval of the investment policy of the investment project to the investment registration agency and within 03 working days from the date of receipt of the complete dossier, the investment registration agency submit the application for appraisal opinions of the Ministry of Information and Communications. Within 15 days from the date of receipt of the dossier, the Ministry of Information and Communications shall give its appraisal opinions on the extent under its state management and send it to the Ministry of Planning and Investment. Within 40 days from the day on which the application is received, the investment registration agency shall organize the appraisal of the dossier and make an appraisal report and submit it to the Prime Minister for approval of the investment policy. After receiving the approval of the investment policy, the investor proceeds to establish the business as domestic entities.

The telecommunication services are subject to strong regulations hence the conditions for foreign investors to invest and set up company in telecommunication services or take part in providing telecommunication services are also relatively complicated. Therefore, investors are suggested to undertake research on telecommunication regulatory specific to their business with the help of telecommunication services lawyers in Vietnam to make the investment effectively.

You could learn more about ANT Lawyers TMT Practice or contact our TMT lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at (+84) 24 730 86 529

 

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Telecommunications, Media & Technology (TMT) Services in Vietnam

ANT Lawyers assist clients to operate with compliance or look for opportunities to enter the market. In Telecommunications, Media & Technology (TMT) practice, our lawyers assist clients in commercial matters, corporate M&A and other transactions, regulatory issues, system integration, software development and licensing, IT services including outsourcing, software & technology agreements, data protection, intellectual property, disputes resolutions.

 

Telecommunications, Media & Technology Services in Vietnam

Our customers include telecom network operators and service providers, producers, software and hardware technology companies, outsourcing companies and e-commerce companies, internet companies, media and entertainment companies.

Some highlight matters include:

KDDI, a Japan telecom company, which we assist on various ongoing matters in Vietnam.

SECUREMETRIC, a Malaysian company providing digital security solutions in Vietnam, which we assist the Malaysian holding company to be listed on the Bursa Securities, advised the procedures for the local entity to be complied, conducted licensing procedures on behalf of the Client and drafted share purchase agreement for execution and carried out the process to change the ERC, IRC of the company in Vietnam under the name of the new owner with strict requirement to meet deadline for listing;

VIETFIBER, a foreign owned company with investors from Turkey manufacturing telecom equipment in Long An City, Vietnam, which we reviewed the shareholder agreements, Share Purchase Agreement, and advised procedures to complete the transfer of capital contribution from current shareholder to new investor and register with authority in Vietnam;

An Eastern European Technology company, which we advised telecommunications, media intellectual property laws on Personal Data Protection, Data Localization, and Copyrights infringement matters for their project to deliver service in Vietnam and online mobile stores in launching a personal content feed offering to users with a personalized news feed, with news items linking to a news story available on a third-party website, as well as a headline and small fragment of a news story and an accompanying image, embedded videos, the video content itself hosted on a third party website.

A Chinese Entertainment company, which we advised the client on the legal risks and compliance plan to launch a music application, an online music software providing functions of singing, recording, and uploading the songs etc, along with intelligent scoring, professional mixing, online interaction and social sharing. The advice cover areas of intellectual property permissions (including complete audio, words, music, accompaniment, music clips, etc.) on UGC (User-generated Content) or PGC (Professionally-generated Content), User License Agreement, the copyright and related rights collective management organization system including: The Vietnam Literary Copyright Center (VLCC); The Recording Industry Association of Vietnam (RIAV); The Vietnam Center for Protection of Music Copyright (VCPMC) and The Vietnam Reproduction Rights Organization (VIETPRO) whom exercise copyright licensing service, collect and distribute of royalties to the authors and rights holders whom authorized to them.

ANT Lawyers - a Law firm for TMT in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. For advice or serive request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529

Let ANT Lawyers help your business in Vietnam.

 

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