The New Telecoms Law in Vietnam has received official approval from the Vietnam National Assembly (NA) and is scheduled to become effective on July 1, 2024. However, specific provisions related to data center services, cloud computing services, and over-the-top communications services (OTT) will come into force on January 1, 2025.
This legislation, replacing the 2009 Law on Telecommunications, which has been in effect since 2010, consists of 10 chapters and 73 articles. It introduces fresh regulations governing data center services, cloud computing services, and OTT services within the country.
Under the New Telecoms Law, a distinct regulatory framework is established for “data center services,” “cloud computing services,” and “OTT services.” Unlike traditional telecom services, these new services will be subject to a more lenient regulatory approach, allowing for unrestricted foreign direct investment in Vietnam for the provision of such services.
Foreign entities can establish 100% foreign-owned ventures in Vietnam to offer data center, cloud computing, and OTT services. Providers of these services will have specific obligations, such as undergoing registration or notification processes.
Concerning user data, the law prohibits unauthorized access, exploitation, or usage of user data processed through the company’s services without explicit user consent. Providers must take prompt measures to prevent access to information at the lawful request of competent state agencies.
While service providers are not responsible for the content of information during processing, storage, and retrieval, they are prohibited from tracking or monitoring user information unless compelled by a competent state authority through a lawful request.
For OTT services requiring access to user terminal devices, providers must inform users of the need to access features and obtain user consent before doing so. The implementation of this new law is expected to be complemented by a guiding decree from the Government, addressing various aspects of the rights and obligations of cross-border providers of cloud computing, data center, and OTT services in Vietnam.
A guiding decree from the Government will likely be in the pipeline following this new law, as many provisions concerning the rights and obligations of providers of cloud computing services, data center services, and OTT services into Vietnam on a cross-border basis are assigned to the Government to ameliorate.
