Basic telecommunication services

Legal basis

• WTO, FTAs, AFAS
• Law on Telecommunications 2009
• Decree 25/2011 of the Government dated 6 April 2011 guiding the Law on Telecommunications (“Decree 25/2011”).

Investment conditions

1. WTO, FTAs, AFAS:

Scope of application

• Voice telephone services (CPC 7521)
• Packet- switched data transmission services (CPC 7523**)
• Circuit- switched data transmission services (CPC 7523**)
• Telex services (CPC 7523**)
• Telegraph services (CPC 7523**)
• Facsimile services (CPC 7521** + 7529**)
• Private leased circuit services (CPC 7522** + 7523**)
• Other services:
  • Videoconference service (CPC 75292)
  • Video Transmission services, excluding broadcasting
  • Radio based services includes: Mobile telephone (including terrestrial and satellite); Mobile data (including terrestrial and satellite); Paging; PCS; Trunking
  • Internet Exchange Service (IXP)

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

• Non-facilities based services: not exceeding 65%.
• 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

Other conditions: 51% gives management control of the business organization providing facilities-based services. In 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 basis telecommunications services. 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.