Key takeaways
1. Overview
Decree 147 comprises 84 articles and six chapters, covering various topics, as follows:
- Internet access and connection services
- Cross-border information provision, covering multiple types of online business, notably offshore social network services and app store services
- Local aggregated information websites and social network services
- Telecoms, internet, web hosting, data center and telecoms application services
- Online games
- Information content services on mobile telecommunications networks
- Content moderation, takedown and access blocking
2. Key issues
Below is our summary of the key issues under Decree 147:
- Regulated cross-border services: Decree 147 imposes multiple obligations upon those providing public information on a cross-border basis that (a) lease space in data centers or (b) receive total monthly visits from Vietnam of 100,000 or more for six consecutive months ("Regulated Cross-Border Services"). These obligations include the following:
- Notify the Ministry of Information and Communications (MIC) of their contact point
- Inspect, monitor and remove infringing content and services per requests from state authorities and service users within strict timelines and procedures
- Enter into content cooperation agreements with Vietnamese press agencies
- Store service user information and provide such information to state authorities upon request
- Take child protection measures such as displaying content warnings
- Provide tools for content searching and scanning upon the request of the authorities
- Conduct on-demand and periodic reports
Importantly, the offshore entity's local representative office or subsidiary in Vietnam (if any) is obliged to cooperate with the authorities to handle illegal content, services and applications being provided across borders to users in Vietnam.
In addition, to facilitate the management of Regulated Cross-Border Services, telecoms, internet, web hosting, data center and telecoms application service providers must comply with certain reporting, content takedown, complaint redressal and access blocking requirements.
- Social networks: Offshore social networks are considered a type of service providing public information on a cross-border basis. When meeting either of the thresholds as mentioned under item 2 (i) above, offshore social networks will then be considered Regulated Cross-Border Services under Decree 147 and will be additionally subject to the following notable obligations:
- Verify user accounts using specific means and only allow verified accounts to utilize certain interactive features
- Comply with the contact point notification obligation before providing livestream features or revenue-incurring activities
- Permanently or temporarily lock user accounts, community pages, community groups and content channels that frequently provide infringing content
- Comply with pay-radio and TV services regulations if directly providing these services to users
- Verify and affix verification symbols on accounts, pages and channels of state agencies, organizations and enterprises with a legal entity in Vietnam and influencers, upon their request
- App stores: Offshore app store services are also treated as a type of service providing public information on a cross-border basis. When meeting either of the thresholds as mentioned under item 2 (i) above, offshore app store services will then be considered Regulated Cross-Border Services and will be subject to the following additional obligations:
- Remove illegal applications upon request of the authorities
- Comply with Vietnam's payment laws
- Require game publishers to provide relevant licenses before making the gaming apps available on the app store
- Online games: Generally, the cross-border provision of online games in Vietnam is still prohibited. Offshore game publishers must set up an enterprise in Vietnam to provide online game services. One of the notable changes includes a new rating level of 16+ for games only suitable for those who are 16 years old or above.
- Illegal content takedown: Decree 147 formally confirms the main power of the MIC and the Ministry of Public Security to regulate online information. They have the power to request local internet access providers, telecommunications service providers, hosting providers and relevant entities to prevent or remove illegal information, services and applications.
The new requirements under Decree 147 will have significant impacts on various offshore services being provided in Vietnam. Given the complexity of this decree and to better prepare for the upcoming changes, companies are strongly encouraged to conduct risk and compliance gap assessments and legal analysis of the decree.
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Tuan Linh Nguyen, Government Affairs Manager, and Alex Do, IPTech Executive, contributed to this legal update.
