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On December 24, 2024, the Vietnamese government issued Decree No. 163/2024/ND-CP (hereinafter, Decree 163), providing comprehensive guidance for implementing the 2024 Telecommunications Law that took effect on July 1, 2024. Effective January 1, 2025, Decree 163 replaces Decree No. 25/2011/ND-CP and its amendments, modernizing Vietnam’s telecommunications regulatory framework. This new decree brings significant updates, especially for emerging services like data centers (DC), cloud computing, and over-the-top (OTT) telecom services.
Key Highlights of Decree 163
New Services Classification
Decree 163 classifies DC, cloud computing, and OTT communication services as value-added telecom services. This aligns them with traditional services such as email and internet access. By formally defining these emerging services, the government establishes a clear regulatory framework to oversee their operation and integration into Vietnam’s telecommunications infrastructure.
This classification promotes transparency, competition, and consumer protection while recognizing the critical role of cloud and data center services in a digitally driven economy.
Cross-Border Service
Decree 163 simplifies regulations for offshore telecom service providers, eliminating the requirement to sign commercial agreements with licensed local telecom companies. Instead, offshore providers must notify the Vietnam Telecommunications Authority (VNTA) using prescribed procedures before offering services.
This adjustment lowers barriers to entry for foreign telecom companies, fostering investment and innovation. However, detailed notification requirements ensure regulatory oversight and compliance with Vietnamese laws.
Expanded Regulatory Capacity
Decree 163’s framework extends to machine-to-machine (M2M) communication, classifying it as a basic telecom service. This lays the foundation for regulating Internet of Things (IoT) operations, which are becoming essential in modern industries. By addressing M2M communication, Vietnam positions itself to manage technological advancements and their implications effectively.
Management of Subscriber Information
Decree 163 introduces stricter measures for verifying subscriber information to enhance trust and security. Telecom providers must:
- Verify subscriber identities using the National Population Database.
- Employ additional methods such as one-time authentication codes (OTP) and video call verification to ensure accuracy and prevent fraud.
These measures aim to safeguard users and ensure compliance with regulatory requirements.
Offshore Providers Obligations
Offshore providers offering basic internet telecom services, DC, or cloud services are subject to specific obligations under Decree 163, including:
- Notification to VNTA: Providers must submit corporate details, service descriptions, and contact information. Updates to this information must be promptly reported.
- Data Management: Providers must store user data locally and comply with Vietnam’s cybersecurity laws. This includes maintaining records of user information, such as names and phone numbers.
- Security Measures: Providers must suspend services during national emergencies or when instructed by competent authorities. They are also required to block harmful or illegal content upon request.
- User Protection: Providers are prohibited from disclosing private user information except under legally permissible circumstances. User consent is mandatory before accessing data on users’ devices.
Additionally, providers serving state agencies must store data exclusively within Vietnam, necessitating local data storage facilities to ensure the security and sovereignty of state data.
Decree 163 represents a progressive step in Vietnam’s telecommunications regulation. By addressing emerging services and fostering a conducive environment for foreign and domestic providers, it:
- Strengthens transparency and competition within the sector.
- Enhances user protection and data security.
- Encourages innovation and investment in telecommunications infrastructure.
With the growing importance of digital services in a modern economy, Decree 163 aligns Vietnam’s regulatory framework with global trends, ensuring its telecom sector remains competitive and forward-looking. This decree not only reinforces the 2024 Telecommunications Law but also sets the stage for a robust and secure digital ecosystem.
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