Vietnam’s New Internet Regulation: Decree 147/2024 – Vietnam Briefing

Vietnam’s new Decree No. 147/2024 introduces stringent regulation for internet services, imposing stricter compliance on onshore and offshore providers and reshaping access, content moderation, and user data management. This marks a pivotal shift in Vietnam’s oversight of its digital ecosystem.

On November 9, 2024, Vietnam’s government introduced Decree No. 147/2024/ND-CP (hereinafter, the “new decree”), a landmark regulation governing the management, provision, and use of internet services and online information.

Replacing the decade-old Decree No. 72/2013/ND-CP and its subsequent amendments, this new decree will take effect on December 25, 2024, signaling a significant shift in Vietnam’s approach to regulating its rapidly evolving digital landscape.

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Spanning over 200 pages and accompanied by an appendix containing 62 forms, the new decree covers an extensive range of topics. These include the management of internet services, domain names, cross-border information provision, social networks, online games, app stores, and telecom application services.

It also introduces stringent measures to control illegal content and sets out detailed responsibilities for various stakeholders, including telecom operators, internet providers, data centers, and web hosting services.

With its comprehensive scope, the new decree represents Vietnam’s efforts to enhance oversight of its digital ecosystem, ensuring alignment with national priorities and international trends, and is poised to have far-reaching implications for both local and international service providers. As such, this article explores the key highlights of the new decree and its potential impact on stakeholders operating in Vietnam’s digital space.

Key provisions of Vietnam’s internet regulation Decree 147

Cross-Border information provision

The new decree introduces stringent requirements for offshore service providers, particularly those offering cross-border internet services in Vietnam. Providers, such as social networks and app stores, fall under regulation if they either lease data storage in Vietnam or attract 100,000 or more total visits per month from Vietnam for six consecutive months.

Key obligations for cross-border providers include, among others:

• Notification of Contact Information: Providers must formally notify the Authority of Broadcasting and Electronic Information (ABEI) about their contact details using a specified form.
• Content monitoring and removal: Offshore entities are required to actively monitor their platforms and remove any content deemed illegal under Vietnamese law.
• User data management: Strict requirements mandate the storage and management of user data, including verifying social network user accounts through Vietnamese mobile numbers or ID numbers.
• Reporting: Providers must submit both annual and ad hoc reports to the ABEI, detailing their compliance activities and operations.
• Livestream restrictions: Only those providers who have properly notified the ABEI are permitted to offer livestream or revenue-generating services on their platforms.

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According to the new decree, failure to meet these obligations can result in severe consequences, including fines, operational blocks, and potential bans from operating in Vietnam.

Additionally, local telecom and internet service providers are tasked with reporting and ensuring compliance to support the state’s oversight of cross-border information flows.

Social network services

The new decree establishes distinct regulatory regimes for onshore and offshore social network service providers, imposing tailored requirements based on their traffic and user base.

Online game services

The new decree reinforces Vietnam’s longstanding restriction on the cross-border provision of online game services. Foreign organizations and individuals are explicitly prohibited from offering online games to Vietnamese users unless they establish a local enterprise within the country.

As such, the cross-border provision of online games, including through foreign platforms without a local presence, remains strictly prohibited.

Notably, the decree introduces a new content rating system, including a 16+ category for games suitable only for individuals aged 16 and above. This aligns with Vietnam’s efforts to regulate the suitability of game content and ensure greater protection for younger users.

Key implications for stakeholders

For onshore providers

The new decree imposes heightened licensing and reporting obligations, requiring social network platforms with significant traffic or user bases to obtain formal approvals. Enhanced scrutiny of content moderation and user data management will demand robust compliance frameworks, increasing operational complexity.

For offshore providers

Stricter compliance requirements are expected to significantly impact offshore service providers. Obligations such as local data storage, user authentication through Vietnamese credentials, and active content monitoring introduce operational and financial challenges. Failure to meet these standards may result in substantial penalties or restrictions.

For users

Users may experience changes in service access and availability as providers adjust to the new regulatory landscape. Enhanced user data verification and content controls could also affect how they engage with online platforms.

This comprehensive regulatory overhaul underscores Vietnam’s intent to assert greater control over its digital ecosystem, placing all stakeholders on notice to adapt swiftly to the evolving landscape.