From now to 2020, state-owned pay radio and television service enterprises would be equitized and listed on the securities market, according to a draft decree revising Decree 06 of 2016 on management, provision and use of radio and television services.
The draft goes on to stipulate that foreign holding caps in pay radio and television service providers which are public companies listed on domestic securities exchanges would comply with the Law on Securities. Besides, foreign businesses wishing to provide pay radio and television services in Vietnam would be required to set up a legal entity in the country.
Worthy of note, the draft decree adds a new type of pay radio and television services, i.e., on-demand Internet-based services. Under Decree 06, enterprises wishing to provide on-demand radio or television services must provide such services via radio or television channel. However, against the backdrop of rapid development of the broadband Internet, the use of mobile devices like cellphones and tablets to access and use Internet-based services has become more and more popular in Vietnam. In reality, a number of enterprises, including FPT, Netflix, Iflix and Spotify, are now providing television and game services via the Internet platforms. Therefore, the addition of the new type of services would lay an official legal foundation for the operation of such enterprises.
In order to create an equal playing field for all businesses, the draft decree underlines that foreign companies providing cross-border internet radio or television services in the country such as Netflix or Spotify would have to observe law like their local rivals.- (VLLF)