The MIC has recently released the ninth draft of a decree on conditions for direct investment in the post and telecommunications domain and management of investment projects on construction of post and telecommunications facilities for business purposes.
Under the draft decree, which would apply to all domestic and foreign investors, investment activities in the post domain cover investments in the provision of delivery services while investment in the telecommunications domain is defined as that made in the establishment of infrastructure for telecommunications networks, Internet and signal transmission for provision of telecommunications services.
Post and telecommunications investment projects subject to appraisal include foreign-invested projects; domestic projects on the establishment of network infrastructure for provision of telecommunications services; and domestic projects on the provision on telecommunications services without network infrastructure, which are capitalized at VND 300 billion or more.
Regarding supervision of investment projects, the draft decree stipulates that licenses for postal operations, delivery, telecommunications, Internet and signal transmission services may not be transferred while the transfer of foreign parties’ capital must comply with relevant Vietnam’s WTO commitments.
Projects on the establishment of network infrastructure for provision of telecommunications services must be in line with telecommunications development strategies, plannings and plans, conform specialized standards and have a registered capital of at least VND 1.6 trillion, VND 500 billion or VND 160 billion, for projects operating on the national, inter-provincial or intra-provincial scale, respectively.
Foreign investors wishing to make investment in these network infrastructure projects as well as projects on basic telecommunications services and Internet access services are required to enter into joint venture or cooperate with licensed domestic partners and contribute a proper proportion of capital in accordance with the country’s WTO commitments.
As for projects on provision of delivery services, the draft decree stipulates that investors, both domestic and foreign, must be lawfully established enterprises which have registered for postal or delivery services. Foreign investors may contribute up to 51% of these projects’ capital. After 2012, economic entities with 100% foreign capital may be founded in this domain.-