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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