Vietnam Introduces Decree 163 to Modernize Telecom Services

The decree, comprising seven chapters and 86 articles, is applicable to both domestic and foreign entities involved in telecommunications activities in Vietnam. While most provisions took effect on December 24, 2024, regulations specific to data centers, cloud computing, and internet-based basic telecommunications services will be enforced starting January 1, 202

According to the Telecommunications Authority under the Ministry of Information and Communications, Decree 163 is a significant step in operationalizing the Telecommunications Law. It aims to foster market growth, enhance competition, and promote the development of advanced and integrated telecommunications infrastructure.

Additionally, the decree supports the modernization of subscriber registration processes, including online registration, aligning with the nation’s digital transformation goals.

These provisions aim to accelerate digital infrastructure and economic growth while ensuring public safety and cybersecurity.

Decree 163 stipulates the rights and responsibilities of foreign service providers under a light management framework, striking a balance between regulatory oversight and market flexibility. It also mandates the secure handling of user data shared during service agreements and emphasizes the secure utilization of these services by government entities.

Standardized Digital Transformation

As part of Vietnam’s digital transformation strategy, Decree 163 brings significant changes to mobile subscriber management processes:

• Telecom providers are now authorized to enable online registration through mobile applications.
• Subscriber information must align with the National Population Database.
• Registration for additional SIM cards requires OTP verification for added security.
• Identity verification during registration may utilize video call technology.

To promote fair competition, the decree sets clear criteria for identifying dominant telecommunications companies and outlines their obligations.

It also introduces rules for managing prepaid mobile cards, mobile accounts, and the resale of telecom services. These measures are designed to reduce risks, prevent misuse, and ensure compliance with regulations for mobile payment systems.

The decree prioritizes the advancement of telecommunications services and infrastructure while safeguarding public safety and information security. It encourages business innovation and competition while addressing the challenges posed by emerging technologies with a balanced and responsible approach.