Foreign investors are allowed to invest and trade telecommunication services in Vietnam

According to Article 4 of the Decree No. 25/2011/NĐ-CP of Vietnam’s Government, forms, conditions and ratios of contributed capital of foreign investors are specified as follows:

1. Foreign investors are allowed to invest and trade telecommunication services in the form of direct investment, indirect investment in accordance with the Telecommunication Law and the law on investment.

2. In case of direct investment to provide telecommunication services without network infrastructure, foreign investors are allowed to jointly venture or cooperate with the business on the basis of contracts with enterprises established in Vietnam. Where the investment is to provide telecommunication services with network infrastructure, foreign investors are allowed to jointly venture or cooperate in the trading on the basis of contracts with telecommunication enterprises that have been licensed to establish a telecommunication network in Vietnam.

3. In addition to the conditions prescribed by laws on investment, foreign investment projects in the field of telecommunication services trading must satisfy the following conditions:

- In accordance with the planning of the national telecommunication development, the planning of telecommunications resource and the planning of passive telecommunication technical infrastructure in the area of investment;

- To meet the conditions for legal capital and committed amount for investment specified in Articles 19, 20 and 21 of Decree No. 25/2011/NĐ-CP.

4. The proportion of contributed capital by foreign parties must be consistent with the provisions of the laws of Vietnam, international treaties to which the Socialist Republic of Vietnam is a member.

View more details at the Decree No. 25/2011/NĐ-CP of Vietnam’s Government, effective from June 11, 2011.

Thuy Tram

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