The Ministry of Post and Telematics (MPT) has been drafting a decree to guide the implementation of the common Investment Law regarding telecommunications sector.
The draft decree, which is expected to be approved by the Government in the third quarter of the year, will lay the legal foundations for foreign investors to team up with local companies and operators to set up joint ventures under WTO commitments.
Foreign investors are encouraged to set up joint ventures with local partners who offer capacity services and new technology-based services.
Of these, foreign service providers can either lease channels from Vietnam’s enterprises or install their own international and internal lines for their services.
Under Vietnam’s WTO commitments in facilities-based services, basic services such as virtual private networks and Internet access services will be allowed to have 49% foreign contributions to legal capital and 50% in terms of added value services.
For non facilities-based services, upon accession, joint ventures will be allowed without limitation on choice of partner with 70% foreign contributions to legal capital of the joint ventures for virtual private network; 51% for added value services and Internet access services and 65% after three years of accession.-