Profile
Vietnamese
Foreign investors in telecommunications services business
Vietnam has strict conditions for foreign investors in telecommunications services. Although it is known that telecommunications services are a profitable industry and Vietnam is a potential country in developing this service industry, foreign investors who want to invest in Vietnam must still strictly comply with the conditions and regulations required by Vietnam.
Conditions for foreign investors to conduct telecommunications business
Telecommunication business is the activity of investors to invest in public telecommunications infrastructure and telecommunications services with the purpose of generating profits. Telecommunication services are services of sending, transmitting, receiving and processing information between groups of telecommunications service users, including telecommunications services and value-added telecommunications services.
This industry is closely related to national security because it directly affects the processing of domestic information sources. Therefore, when foreign investors conduct telecommunications business, they must satisfy the following conditions:
According to the WTO Commitment Schedule, FTAs, AFAS has specific conditions
✔️Scope of application:
- Telex services;
- Voice services;
- Facsimile services;
- Telegram services;
- Internet connection services;
- Private channel leased services;
- Video conferencing services;
- Packet switched data transmission services;
- Channel switched data transmission services;
- Video signal transmission services except broadcasting;
- Radio information services, including: Mobile voice services (including terrestrial and satellite mobile); Mobile data services (including terrestrial and satellite mobile); Paging services; PCS services; Radio trunking services.
✔️Ratio of charter capital ownership of foreign investors in economic organizations:
- Services with network infrastructure: not exceeding 49%;
- Services without network infrastructure: not exceeding 65%.
- Type of enterprise investing in Vietnam: Investment in the form of joint venture
✔️Vietnamese partner participating in the investment: a telecommunications service provider licensed in Vietnam for economic organizations providing services with network infrastructure.
✔️Other conditions: 51% is to have control in the management of economic organizations providing services with network infrastructure. In the telecommunications industry, foreign investors participating in business cooperation contracts will be able to sign new agreements or switch to other forms of presence with conditions no less favorable than those they are currently enjoying.
Regulations on conditions for doing business in telecommunications services for foreign investors under Vietnamese law
✔️Foreign investors are allowed to invest in the form of joint ventures or business cooperation contracts to provide basic telecommunications services.
✔️An organization or individual that owns more than 20% of the charter capital or shares in a telecommunications enterprise shall not own more than 20% of the charter capital or shares of another telecommunications enterprise operating in the same telecommunications service market in the List of telecommunications services prescribed by the Ministry of Information and Communications.
✔️Having a Business Registration Certificate or a Certificate of Registration for Investment in Telecommunications Services Business;
✔️Having sufficient financial capacity, organizational structure and human resources appropriate to the scale of the telecommunications service investment project;
✔️Have a feasible technical plan and business plan in accordance with the national telecommunications development strategy and planning, regulations on telecommunications resources, connections, tariffs, standards, technical regulations, network quality and telecommunications services;
✔️Have measures to ensure the safety of telecommunications infrastructure and information security.
✔️Foreign investors need to apply for additional sub-licenses to establish public telecommunications networks and must meet the following conditions:
- Have sufficient conditions to be granted a telecommunications service business license;
- Legal capital and investment commitment level according to Government regulations (Articles 19 to 21 of Decree 25/2011/ND-CP dated April 6, 2011).
Procedures for foreign investors in telecommunications services
Step 1: Apply for an Investment Registration Certificate (IRC) in Foreign-Invested Telecommunications Services
Step 2: Establish a business & apply for a Telecommunications Services Business License
Step 3: The business announces the contents of the Telecommunications Services Business License
Step 1: Apply for a Investment Registration Certificate (IRC) in Foreign-Invested Telecommunications Services
✅A written request to implement a foreign-invested telecommunications services business investment project;
✅A copy of the ID card or passport for individual investors and a document confirming the legal status of the investor for organizations;
✅A document proposing the investment project including detailed information about the project;
✅A copy of the investor’s financial documents;
✅Documents on land use needs, site lease agreements or site use rights to implement investment projects.
Agency submitting documents: Department of Planning and Investment
Time: For investment projects not subject to investment policy decisions: 15 – 20 working days from the date of receipt of complete documents.
Step 2: Establish a business and apply for a Business License
Investor’s application for a Telecommunications Service Business License
Foreign investors must submit 05 (five) sets of documents to the specialized telecommunications management agency. The application for a license includes the following specific documents:
✅A certified copy of the enterprise’s charter;
✅Business plan for the first 5 years from the date of license issuance;
✅Application for a license according to the form issued by the Ministry of Information and Communications;
✅Technical plan corresponding to the business plan for the first five years from the date of license issuance;
✅Draft of a sample contract for the provision of telecommunications services for specific services the enterprise intends to provide;
✅A certified copy of the Enterprise Registration Certificate or Investment Registration Certificate of the foreign investor.
Application submission agency: Department of Telecommunications under the Ministry of Information and Communications
Time: Within 05 working days from the date of receipt of the application, the Department of Telecommunications will review and notify the enterprise. Within 45 working days, the Department of Telecommunications will coordinate with relevant agencies to appraise the application and grant a license or submit it to the Minister of Information and Communications to grant a license to the foreign investor.
Step 3: Announcement of the contents of the Telecommunications Service Business License
Within 30 working days from the date of being granted the telecommunications service business license, the enterprise must publish in one of the written or electronic newspapers in three consecutive issues the main contents of the telecommunications service business license, including the following specific main contents:
- License number, license issuance date, license expiration date;
- Type of telecommunications network, scope of telecommunications network establishment (if any);
- Scope of service business, types of services permitted for business (if any);
- Terms and conditions that the enterprise must comply with when establishing a telecommunications network and providing telecommunications services;
- Enterprise name, transaction name of the enterprise in Vietnamese and foreign languages (if any); location of head office, location of branches, representative offices in Vietnam.
For comprehensive free CONSULTATION ON THE SERVICE OF ESTABLISHING A TELECOMMUNICATION SERVICES BUSINESS COMPANY FOR FOREIGN INVESTORS IN VIETNAM, please contact:
- Head office in Ha Noi: No. 44/A32 – NV13, Gelexemco A, Le Trong Tan Street, An Khanh Ward, Hoai Duc District, Ha Noi.
- Hotline: 0967.818.020 – 0961-366-238
- Email: Siglaw.contact@gmail.com
- Office in Ho Chi Minh: A9.05 Block A, Sky Centre Building, No. 5B Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh.
- Representative office in Da Nang: 177 Trung Nu Vuong, Hai Chau District, Da Nang City.
Phone: (+84) 961 366 238
Email:
- vphn@siglaw.com.vn
- vphcm@siglaw.com.vn
Headquarters: No.44/A32-NV13, Gleximco A, Le Trong Tan street, An Khanh, Hoai Duc, Ha Noi, Vietnam.
Southern branch: A9.05 BLOCK A, SkyCenter Building, 5B Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam.
Central branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City
Facebook: https://www.facebook.com/hangluatSiglaw
