Other basis telecommunication services (Virtual Private Network – VPN)

Legal basis

• WTO, FTAs, AFAS
• Law on Telecommunication 2009.
• Decree 25/2011.

Investment conditions

1. WTO, FTAs, AFAS:

Ratio of foreign investors’ ownership in charter capital of a business organization

• Non facilities-based services: not exceeding 70%.
• Facilities-based services: not exceeding 49%.

Form of investment: Joint-venture.

Vietnamese parties participating in the investment: telecommunications service suppliers duly licensed in Vietnam in case of business organizations supplying facilities-based services

In the telecommunications sector, foreign investors in BCC will have the possibility to renew current arrangements or to convert them into another form of establishment with conditions no less favorable than those they currently enjoy.

2. The Law of Vietnam:

Foreign investors are allowed to invest under joint- venture form or BCC to provide other basis telecommunications services (Virtual Private Network) . In the particular case of providing facilities-based telecommunications services, Vietnamese parties shall be telecommunication enterprises which have been licensed to establish a telecommunication network in Vietnam.

An organization or individual owing more than 20% of charter capital or shares in a telecommunication enterprise shall not be allowed to possess more than 20% of charter capital or shares of other telecommunication enterprises doing the business in the same telecommunication service market belonging to the List of telecommunication services promulgated by the Ministry of Information and Communications.