Foreign ownership in infrastructure-based fixed and mobile telecom and other telecom services providers (e.g. virtual private network (VPN), value-added services) is limited to 49%; foreign ownership in services-based providers is limited to 65% in telecom and value-added services and 70% in relation to VPN services.
On July 1, 2024, the new Telecommunications Law No. 24/2023/QH15 entered into force. The law clarifies that there are no statutory foreign ownership limits for non-infrastructure-based services, including Internet-based basic telecom services, cloud computing services, and data center services. However, as core non-facilities-based telecommunications services remain restricted, no score adjustment is made to reflect the liberalisation of these other services.
"Article 1. Scope of regulation
This Law regulates telecommunications activities; rights and obligations of organizations and individuals participating in telecommunications activities; and state management of telecommunications.
Article 2. Subjects of application
This Law applies to Vietnamese organizations and individuals, foreign organizations and individuals directly participating in or related to telecommunications activities in Vietnam.
Article 3. Interpretation of terms
In this Law, the following terms are construed as follows: [...]
7. Telecommunication services include basic telecommunication services and value-added telecommunication services:
a) Basic telecommunication services are services of sending, transmitting and receiving information between two people or a group of people using telecommunication services, between terminal devices through telecommunication networks;
b) Value-added telecommunication services are services that provide additional features of processing, storing and retrieving information for users through sending, transmitting and receiving information on telecommunication networks.
8. Basic telecommunication services on the Internet are telecommunication services that provide the main feature of sending, transmitting and receiving information between two people or a group of people using telecommunication services on the Internet.
9. Data center services are telecommunication services that provide features of processing, storing and retrieving information for users through telecommunication networks by leasing part or all of the data center.
10. Cloud computing is a model that allows flexible use, adjustment, and management according to the needs of shared computing resources including networks, servers, storage devices, and applications.
11. Cloud computing services are telecommunications services that provide processing, storage, and information retrieval features for users over telecommunications networks via cloud computing.
[...]
Article 19. Establishment of telecommunications networks
1. Telecommunication networks shall be built and developed in accordance with telecommunications strategies, plans, standards, and technical regulations approved and promulgated by competent state agencies.
2. Organizations establishing telecommunications networks must have a license to provide telecommunications services with network infrastructure specified in Point a, Clause 2, Article 33 of this Law or a license to establish telecommunications networks specified in Point b and Point d, Clause 3, Article 33 of this Law.
3. The Prime Minister shall prescribe the establishment and operation of private telecommunications networks serving Party and State agencies.
[...]
Article 28. Provision of basic telecommunications services on the Internet
1. Enterprises providing basic telecommunications services on the Internet have the following rights:
a) To invest in the business of basic telecommunications services on the Internet without limiting the percentage of shares owned, capital contributions or contribution ratios of foreign investors in business cooperation contracts;
b) The rights specified in Points a, b, d, e and g, Clause 1, Article 13, Clause 3, Article 40, Clause 2, Article 62 of this Law.
2. Enterprises providing basic telecommunications services on the Internet have the following obligations:
a) To carry out the registration and notification of provision of telecommunications services in accordance with the provisions of Article 41 of this Law;
[...]
Article 29. Provision and use of data center services and cloud computing service
 1. Enterprises providing data center services and cloud computing services have the following rights:
a) Investing in business of data center services and cloud computing services without limiting the percentage of shares owned, capital contribution or contribution ratio of foreign investors in business cooperation contracts; [...]
2. Enterprises providing data center services and cloud computing services have the following obligations:
a) Carry out registration and notification of provision of telecommunications services according to the provisions of Article 41 of this Law;
[...]
Article 41. Registration and notification of provision of telecommunications services
1. Registration of provision of telecommunications services means that enterprises must declare information about the enterprise, the type of telecommunications services provided, and satisfy the conditions for provision of telecommunications services according to the Government's regulations.
2. Notification of provision of telecommunications services means that enterprises must declare information about the enterprise, the type of telecommunications services provided, and information related to the quality of services provided by the enterprise.
3. The Government shall specify in detail the list of telecommunications services subject to registration and notification of provision of telecommunications services; conditions for provision of telecommunications services for registration forms; procedures for registration and notification of provision of telecommunications services.
Article 42. Exemption from telecommunications licenses, registration, and notification of provision of telecommunications services Organizations and individuals engaged in telecommunications activities are exempted from telecommunications licenses, registration, and notification of provision of telecommunications services in the following cases:
1. Trading in telecommunications goods;
2. Providing telecommunications services in the form of telecommunications service agents;
3. Renting transmission lines to provide telecommunications application services;
4. Private telecommunications networks in which network members belong to the same organization and do not establish telecommunications transmission lines themselves.[...]" (Law on Telecommunications No. 24/2023/QH15, effective 1 July 2024 [google translation])
------------------------
"Article 3. Definitions
For the purposes of this Law, the terms below are construed as follows: [...]
10. "market access conditions applied to foreign investors" mean those which must be satisfied by foreign investors to make investment in the List of business lines with prohibited and restricted market access (hereinafter referred to as "the Negative List for Market Access") specified in Clause 2 Article 9 of this Law.  [...]
19. "foreign investor" means an individual holding a foreign nationality or an organization established under foreign laws and carrying our business investment activities in Vietnam.
20. "domestic investor" means an individual holding Vietnamese nationality or a business organization whose members or shareholders are not foreign investors. 
[...]
Article 4. Application of the Law on Investment and relevant laws
1. Business investment activities in the territory of Vietnam [must] comply with the Law on investment [this Law] and other relevant laws.
2. If there is any discrepancy between the provisions of this Law and those of another law issued before the effective date of this Law in relation to the industries and trades in which business investment is prohibited, or industries and trades in which business investment is conditional, then the provisions of the Law on investment [this Law] shall prevail.
[...]
Article 9. Business lines with prohibited and restricted market access and market access conditions applied to foreign investors
1. Market access conditions applied to foreign investors are the same as those applied to domestic investors, except for the case specified in Clause 2 of this Article.
2. Pursuant to Laws and Resolutions of the National Assembly, Ordinances and Resolutions of the Standing Committee of the National Assembly, Decrees of the Government and international treaties to which the Socialist Republic of Vietnam is a signatory, the Government shall promulgate a Negative List for Market Access, including:
a/ Prohibited business lines; b/ Restricted business lines.
3. Market access conditions applied to foreign investors specified in the Negative List for Market Access include:
a/ Holding of charter capital by the foreign investor in a business organization; b/ Investment method; c/ Scope of investment; d/ Capacity of the investor; partners participating in the investment activities; dd) Other conditions specified in the Laws and Resolutions of the National Assembly, Ordinances and Resolutions of the Standing Committee of the National Assembly, Decrees of the Government and international treaties to which the Socialist Republic of Vietnam is a signatory.
[...]
Article 23. Implementation of investment activities by foreign-invested economic organizations
1. When making investment in establishment of other economic organizations; contribution of capital to, or purchase of shares or capital contributions at, other economic organizations; or investment in the form of BCC, economic organizations must meet the conditions and shall carry out investment procedures according to regulations applicable to foreign investors if falling into one of the following cases:
a/ Having over 50% of their charter capital held by a foreign investor/foreign investors, or having a majority of their general partners being foreign individuals, for partnerships;
b/ Having over 50% of their charter capital held by an economic organization/economic organizations specified at Point a of this Clause;
c/ Having over 50% of their charter capital held by a foreign investor/foreign investors and an economic organization/economic organizations specified at Point a of this Clause. [...]" (Law on Investment No. 61/2020/QH14 of 17 June 2020 [google translation])
------------------------------------
"Section 2. SECTORS, LINES AND MARKET ACCESS CONDITIONS FOR FOREIGN INVESTORS
Article 15. Sectors and trades restricted from market access for foreign investors
1. Sectors and trades with restrictions on market access for foreign investors and restrictions on market access for such industries and trades are prescribed in laws and resolutions of the National Assembly, ordinances and resolutions. of the National Assembly Standing Committee, Government decrees and international treaties on investment. The list of industries and trades with restrictions on market access for foreign investors is published in Appendix I of this Decree.
2. Market access conditions for foreign investors shall be applied in the forms specified in Clause 3, Article 9 of the Law on Investment and posted and updated according to the provisions of Article 18 of this Decree.
[...]
Article 16. Subjects of application of the List of industries and trades restricted from market access
1. The list of industries and trades with restricted market access applies to:
a) Foreign investors as prescribed in Clause 19, Article 3 of the Law on Investment ;
b) The economic organization specified at Points a, b and c, Clause 1, Article 23 of the Law on Investment when investing in the establishment of other economic organizations; make capital contribution, purchase shares, purchase capital contribution portion of other economic organizations; investment in the form of BCC contract.
(In this Section, the subjects specified at Points a and b of this Clause, hereinafter collectively referred to as foreign investors, unless otherwise provided for by this Decree).
[...]
Article 17. Principles of applying restrictions on market access for foreign investors
1. Except for the industries and trades on the List of industries and trades with restricted market access for foreign investors specified in Appendix I of this Decree, foreign investors are entitled to market access as prescribed for domestic investors.
2. Foreign investors are not allowed to invest in industries and trades that have not yet been able to access the market as prescribed in Section A, Appendix I of this Decree.
3. For industries and trades with conditional market access for foreign investors as prescribed in Section B, Appendix I of this Decree, foreign investors must satisfy the conditions for market access according to the provisions of Article 18 of this Decree.
4. Market access conditions for industries and trades that Vietnam has not yet committed to market access to for foreign investors are applied as follows:
a) Where laws and resolutions of the National Assembly, ordinances and resolutions of the National Assembly Standing Committee, decrees of the Government (hereinafter referred to as Vietnamese law) do not contain provisions restricting access to the market for that industry or trade, foreign investors may access the market as prescribed for domestic investors;
b) Where Vietnamese law already contains provisions on restricting foreign investors' market access for such industries or trades, the provisions of Vietnamese law shall apply. [...]
7. Foreign investors belonging to countries or territories that are not members of the WTO and conducting investment activities in Vietnam are entitled to the same market access conditions as those applicable to national investors. a territory that is a member of the WTO, unless otherwise provided for by Vietnamese law or an international treaty between Vietnam and that country or territory.
[...]
APPENDIX I - LIST OF INDUSTRY AND LINES LIMITED MARKET ACCESS FOR FOREIGN INVESTORS [...]
B. BUSINESS LINES WITH RESTRICTED MARKET ACCESS [...]
5. 5 Postal and telecommunications services [...]"(Government Decree on the Elaboration of Some Articles of the Law on Investment No. 31/2021/ND-CP of 26 March 2021 [google translation] (Decree 31), which provides guidance on the implementation of the new Law on Investment [google translation])
---------------------------
"INDUSTRY, SECTOR | CONDITIONS LIMITED MARKET ACCESS | LEGAL BASIS [not reproduced here] [...]
5.2 Telecommunications services, including: 1. Basic telecommunications services [...] 2. Value-added telecommunications services [...] |
1. WTO, AFAS, VJEPA, VKFTA, EVFTA regulate: [...]
1.1. WTO, VKFTA, VJEPA:
For basic telecommunications services: None, except
- Services without network infrastructure: Allows joint ventures and freedom to choose partners. The foreign capital contribution in the joint venture must not exceed 65% of the legal capital of the joint venture.
- Services with network infrastructure: Allows joint ventures with licensed telecommunications service providers in Vietnam. The foreign capital contribution in the joint venture must not exceed 49% of the legal capital of the joint venture. [...]
For virtual private network (VPN) service: No restrictions, except:
- Services without network infrastructure: Allows joint ventures and freedom to choose partners. The foreign capital contribution in the joint venture must not exceed 70% of the legal capital of the joint venture.
- Services with network infrastructure: Allows joint ventures with licensed telecommunications service providers in Vietnam. The foreign capital contribution in the joint venture must not exceed 49% of the legal capital of the joint venture.
For value-added services: None, except:
- Services without network infrastructure: Allows business cooperation or joint venture contracts. The foreign capital contribution in the joint venture must not exceed 65% of the legal capital of the joint venture.
- Services with network infrastructure: Business cooperation contracts or joint ventures with licensed telecommunications service providers in Vietnam are allowed. The foreign capital contribution in the joint venture must not exceed 50% of the legal capital of the joint venture.
[...]
3. Vietnamese law
a) Foreign investors may invest in the form of joint ventures or business cooperation contracts to provide basic telecommunications services.
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.
b) 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 company. a telecommunications service market on the List of telecommunications services regulated by the Ministry of Information and Communications.
c) Conditions on legal capital and investment commitment level specified in Articles 19, 20 and 21 of Decree No. 25/2011/ND-CP." (Government of Viet Nam, List B: List of occupations with conditional market access for foreign investors: Conditions (updated 2020), webpage [google translation])
Law on Telecommunications No. 24/2023/QH15, effective 1 July 2024 [google translation]
Law on Investment No. 61/2020/QH14 of 17 June 2020 [google translation]
Government Decree on the Elaboration of Some Articles of the Law on Investment No. 31/2021/ND-CP of 26 March 2021 [google translation]
Government of Viet Nam, List B: List of occupations with conditional market access for foreign investors: Conditions (updated 2020), webpage [google translation]
[<a href="https://vanban.chinhphu.vn/?pageid=27160&docid=209631&classid=1&typegroupid=3">Law</a>],[<a href="https://vbpl.vn/bokehoachvadautu/Pages/vbpqen-toanvan.aspx?dvid=312&ItemID=11133">Law</a>],[<a href="https://vbpl.vn/bokehoachvadautu/Pages/vbpq-toanvan.aspx?ItemID=147720&Keyword=31/2021/ND-CP">Decree</a>],[<a href="https://vietnaminvest.gov.vn/SitePages/News_Detail.aspx?ChuyenMuc=3&ItemId=16">Webpage</a>],[<a href="https://vbma.org.vn/storage/legal-documents/July2021/54_2019_QH14_436329.doc">Law</a>],[<a href="https://static1.squarespace.com/static/50c0b136e4b01ad287768e06/t/6246f475c7499050ffab3d02/1648817271960/2022+3+30+Decree+31.2021+implementing+Investment+Law+2020+1.2.pdf">Other</a>],[<a href="https://www.allenandgledhill.com/vn/perspectives/articles/18840/vnkh-issues-new-guidance-on-foreign-investment">Other</a>],[<a href="https://www.legalbusinessonline.com/features/explainer-can-vietnam%E2%80%99s-updated-telecom-law-help-attract-foreign-investment">Other</a>]