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Conditions for investment in basic telecommunications services

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Other Telecommunications Service in general or Virtual Private Network Service is a customer private network based on shared public network infrastructure. This service is used a lot in daily life, so the market for this service is huge. Therefore, foreign investors investing in virtual private network services in Vietnam are increasing. However, this is a conditional business line. In order for investors to determine whether they are eligible to invest in this service, LSX Law Firm would like to advise on investment conditions for foreign investors in the field of other telecommunications services as follows.

Legal grounds

WTO commitments, FTAs ​​(Free Trade Agreements), AFAS (ASEAN Framework Agreement on Services)

Telecommunications Law No. 41/2009/QH12

Decree 25/2011/NDCP dated April 6, 2011

Investment conditions


  • Rate of ownership of charter capital of foreign investors in economic organizations

+ Firstly, services without network infrastructure: do not exceed 70%.

+ Secondly, services with network infrastructure: not exceeding 49%.

  • Investment form: joint venture
  • Vietnamese partners participating in investment: telecommunications service providers licensed in Vietnam for economic organizations providing services with network infrastructure.
  • In the telecommunications industry, foreign investors participating in business cooperation contracts will be able to renew their existing agreements or switch to another form of presence with conditions no less favorable than those they are currently receiving.

Law of Vietnam

For other basic telecommunications services, foreign investors, when wishing to invest in this field in Vietnam, must comply with the conditions prescribed by Vietnamese law as follows:

  • Foreign investors may invest in the form of joint ventures or business cooperation contracts to provide other basic telecommunications services (virtual private array services – VPN), particularly for the provision of telecommunications services with network infrastructure, the Vietnamese partner must be a telecommunications enterprise that has been granted a license to establish a telecommunications network in Vietnam.
  • An organization or individual that already owns more than 20% of the charter capital or shares in a telecommunications enterprise may not own more than 20% of the charter capital or shares of another telecommunications enterprise doing business in the same market. telecommunications service schools on the List of telecommunications services regulated by the Ministry of Information and Communications.

Contact LSX Law firm

Finally, hope this article Conditions for investment in basic telecommunications services is useful for you.

If you have any questions please contact Lawyer X for quick and best legal services: +84846175333 or email: [email protected].

Related questions

Who are foreign investors?

Foreign investor means an individual with foreign nationality or an organization established under foreign law that conducts business investment activities in Vietnam.

How will the profit transfer?

Foreign investors must transfer overseas through direct investment capital account

Conclusion: So the above is Conditions for investment in basic telecommunications services. Hopefully with this article can help you in life, please always follow and read our good articles on the website:

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