Vietnam Allows 100% Foreign Investment in Certain Telecom Sector
The new Law on Telecommunications which is approved by the National Assembly of Vietnam on 24 November 2023 adds three types of new non-traditional telecommunications services to its scope of regulation, i.e. data center services, cloud computing services and basic telecommunications services on the internet, also known as over-the-top (OTT) services. The old Law on Telecommunications has no regulations on the foregoing services.
The newly added non-traditional telecommunications services are not subject to any foreign ownership restrictions under the new Law on Telecommunications. Foreign investors are allowed to set up 100% foreign owned entities to provide data center services, cloud computing services and OTT services in Vietnam.
The definition of the three newly introduced categories of telecommunications services under the new Law on Telecommunications are as follows:
-
Basic Telecommunications Services on the Internet (OTT services): services of sending, transmitting, and receiving information between two or more telecommunications services users on the Internet and between terminals via telecommunications networks.
-
Data Center Service: services that provides information processing, storage, and retrieval features to users via telecommunications networks by leasing part or the whole of the data center.
-
Cloud Computing Services: services that provides information processing, storage, and retrieval features for users via telecommunications networks through cloud computing.
The new Law on Telecommunications will come into effect on 1 July 2024. However, the relevant regulations on data center services, cloud computing services and OTT services shall take effect from 1 January 2025.
KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.
NEWS
