Introduction

Decree 121/CP of 15 August 1987, promulgated by the Council of Ministers (“Decree 121”), created the first legal framework for telecommuni­cations and postal activities in Vietnam. Between 1987 and 1997, Decree 121 was the primary piece of legislation regulating the telecommunications industry.

With the rapid evolution of the industry, especially during the late 1990s, Decree 121 soon became obso­lete. On 12 November 1997, the Government issued Decree 109/1997/ND-CP on postal and telecommunications activities (“Decree 109”) to replace Decree 121. A number of implementing sub-regulations followed.  Most of these regulations had the purpose of protecting the State’s monopoly through tight control of the market.

Vietnam entered into a Bilateral Trade Agreement (“BTA”) with the United States in December 2001, in which Vietnam agreed to gradually open the telecommunications sector to United States entities. This commitment also set a schedule. Vietnam became a member of the WTO in January 2007. In its WTO commitments, Vietnam agreed to open telecommunications services to foreign investors under a prescribed schedule. As such, there was a need for a more comprehensive legal framework to manage a fully liberalized market.

Vietnamese telecommunications law has undergone several reformations in order to meet Vietnam’s international obligations. On 25 May 2002, the first Ordinance on Post and Telecommunications was approved by the Standing Committee of the National Assembly and became effective on 1 October 2002 (“Ordinance”)[1]. The Ordinance was then replaced by the Law on Telecommunications 2010 (“LOT 2010”) which came into effect on 1 July 2010. The LOT 2010 represented the first time that regulations on telecommunications were compiled in a separate comprehensive law. It provides a legal framework for all telecommuni­cations activities. The LOT 2010 was replaced by the Law on Telecommunications 2023 (“LOT”) on 1 July 2024[2]. The LOT is an attempt by the State to modernize its legal regime to catch up with recent digital advances, while simultaneously introducing a light-touch management principle in the telecoms sector.

This book was written by lawyers from Russin & Vecchi. This edition is current through November 2024.

 

 

[1]              An Ordinance is a legal instrument passed by the Standing Committee of the National Assembly when the National Assembly is not in session.  An Ordinance has the same effect as a Law.

[2] Certain provisions under the LOT will come into effect on 1 January 2025 but they have nevertheless been discussed in this text.