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Conditions for investment in basic telecommunications services for foreign investors
What are the basic conditions for investment in telecommunications services for foreign investors in Vietnam? To find out more about the conditions for doing basic telecommunications services with foreign investment, please refer to the article below with Siglaw:
What are basic telecommunication services?
Currently, Vietnamese law classifies telecommunications services into basic telecommunications services and value-added telecommunications services. In particular, service sectors listed on the list of basic telecommunications services are currently specified in Clause 1 Article 9 of Decree 25/2011/ND-CP:
“Article 9. Classification of telecommunication services
Basic telecommunication services include:
- a) Voice service;
- b) Fax services;
- c) Data transmission services;
d/ Image transmission services;
đ) Messaging services;
- e) Video conferencing services;
- g) Leased line services;
h/ Internet connection services;
i/ Other basic telecommunications services as prescribed by the Ministry of Information and Communications.”
Laws governing investment in basic telecommunications services with foreign capital
Foreign investors wishing to invest in basic telecommunications services will need to meet investment conditions under the provisions of Vietnamese law and treaties to which Vietnam is a signatory. Specifically, foreign investors’ investment in basic telecommunications services will be governed by the following documents: Law on Investment 2020, Law on Telecommunications 2009, WTO commitments, FTAs, ASEAN Framework Agreement on AFAS Services.
Conditions for investment in basic telecommunications services according to international regulations (According to WTO, FTAs, AFAS)
Service industries: WTO, FTAs, AFAS apply these conditions to services: Voice services (CPC 7521); Private leased service (CPC 7522** + 7523**); Packet-switched data transmission service (CPC 7523**); Channel switched data transmission service (CPC 7523**), Telex service (CPC 7523**), Facsimile service (CPC 7521** + 7529**); Telegraph Services (CPC 7523**)
Conditions on the percentage of ownership of charter capital of foreign investors in economic organizations. For services without network infrastructure, foreign investors are not allowed to own charter capital exceeding 65% and for services with network infrastructure, not exceeding 49%.
Conditions for investment in basic telecommunications services under Vietnamese law
In case a foreign investor invests in basic telecommunications services for the first time
Foreign investors coming to Vietnam and investing in telecommunications services for the first time will need to pay attention to meet the following conditions if they want to invest in this field.”
- Investors having investment projects shall carry out procedures for investment registration or investment examination at state management agencies in charge of investment in order to be granted investment certificates and business registration certificates. Currently, the agency competent to issue investment certificates is the Investment Department of the Department of Planning and Investment; Management boards of industrial parks, export processing zones, high-tech parks, economic zones and investment registration agencies in provinces.
- Licensed by the Ministry of Information and Communications for provision of telecommunications services. Having a business registration certificate or a certificate of investment in telecommunications service business;
- Have sufficient financial capacity, organization of apparatus and human resources suitable to the scale of the project;
- Take measures to ensure the safety of telecommunications infrastructure and information security.
- The investor has prepared details of technical plans, feasible business plans in accordance with Vietnam’s telecommunications development strategy and planning, regulations on telecommunications resources, connection, tariffs, standards, technical regulations, quality of telecommunications networks and services;
- Legal capital depending on the type of telecommunications network foreign investors intend to set up will vary, ranging from VND 5 to 500 billion. The amount of capital committed to investment should be ensured according to regulations of each type of telecommunications network that foreign investors intend to establish, from VND 15-2500 billion
In case a foreign-invested enterprise established in Vietnam conducts investment and business activities in telecommunications services;
In this case, the investor will have to meet the following two conditions
- Enterprises must carry out procedures for amending and supplementing business GCNDKs and IRCs that enterprises already have;
- Enterprises must meet the conditions to apply for a sublicense for provision of telecommunications services as in the case of first investment mentioned above
Above is information on the topic “Basic telecommunications service investment conditions for foreign investors” from the staff of Siglaw Law Firm. If you still have any problems to solve, please contact Siglaw for completely free support in the fastest way.
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- vphn@siglaw.com.vn
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