Foreign investors in Vietnam’s telecom sector face ownership caps of no more than 49% for network-based services and no more than 65% for non-network services (under Vietnam’s WTO/FTA commitments); basic internet-based telecom services, data centers and cloud computing carry no foreign ownership cap — the biggest opening of the 2023 Law on Telecommunications. Licenses are now issued by the Authority of Telecommunications, Ministry of Science and Technology (no longer the Ministry of Information and Communications after the 2025 merger).
1. Applicable legal framework
- Law 24/2023/QH15 on Telecommunications (24/11/2023, effective 01/7/2024) — replacing the 2009 Law on Telecommunications.
- Decree 163/2024/ND-CP (24/12/2024, effective 24/12/2024) — replacing Decree 25/2011/ND-CP.
- Decree 133/2025/ND-CP (12/6/2025, effective 01/7/2025): assigning state management of telecommunications to the Ministry of Science and Technology (after the merger of the Ministry of Information and Communications into the Ministry of Science and Technology).
- Circular 13/2025/TT-BKHCN (effective 01/9/2025): the Minister of Science and Technology delegates to the Authority of Telecommunications the issuance, renewal, re-issuance, amendment, supplementation and revocation of telecom licenses.
- “Postal and telecommunications services” are on the list of sectors subject to conditional market access for foreign investors (Section B(5), Appendix I of Decree 96/2026/ND-CP).
2. Foreign ownership ratios
On the source of these figures: the ratios below originate from Vietnam’s WTO/FTA commitments; the Law on Telecommunications and Decree 163/2024 do not state the figures directly.
- Network-based telecom services: foreign investors may own no more than 49% of charter capital; investment via joint venture with a licensed Vietnamese enterprise; the Vietnamese side holds management control (51%).
- Non-network telecom services: foreign investors may own no more than 65% (joint venture or business cooperation contract).
- No foreign ownership cap (Articles 28 and 29): basic internet-based telecom services (Article 28, Clause 1, Point a), data center services, cloud computing services — the biggest opening of the 2023 Law on Telecommunications for technology FDI.
- The State holds controlling shares in enterprises providing network-based services of special importance (list issued by the Prime Minister).
3. Conditions for telecom business licenses (Article 36)
On article numbering: licensing conditions are in Article 36 (Article 35 governs license types: individual licensing / class licensing).
Clause 1 — network-based licenses using spectrum via auction/selection/re-issuance:
- (a) Hold an enterprise registration certificate or investment registration certificate;
- (b) Meet the minimum charter capital prescribed by the Government;
- (c) Not undergoing dissolution or bankruptcy;
- (d) Have technical and business plans consistent with ICT infrastructure planning, telecom resources, interconnection, service pricing, technical standards, service quality, telecom infrastructure safety and user rights;
- (dd) Commit to deploying the telecom network for spectrum granted via auction/selection/re-issuance;
- (e) Win the spectrum auction/selection or qualify for spectrum re-licensing.
Clause 2 — network-based licenses without spectrum auction: meet Points (a), (b), (c), (d) of Clause 1 plus Government-prescribed network deployment conditions.
Clause 3 — non-network licenses: only Points (a), (c), (d) are required — no minimum charter capital (Point b does not apply). An important point many investors overlook.
4. Minimum charter capital — important note
The 2023 Law on Telecommunications requires “minimum charter capital as prescribed by the Government” (Article 36, Clause 1, Point b) — but this applies only to network-based licenses; non-network licenses (Article 36, Clause 3) carry no minimum capital requirement. The specific figure is set by the Government (Decree 163/2024) — the detailed figure has not been verified, so this article states no figure and does not apply superseded levels.
5. License types and validity (Article 33, Clause 2)
- Network-based telecom service license: validity of no more than 15 years;
- Non-network telecom service license: validity of no more than 10 years.
6. Licensing authority and procedure
The Authority of Telecommunications (under the Ministry of Science and Technology) directly issues, renews, re-issues, amends, supplements and revokes telecom licenses under the delegation in Circular 13/2025/TT-BKHCN. Do not write “Ministry of Information and Communications” — it was merged into the Ministry of Science and Technology in 2025.
On procedure: submit 01 dossier set to the Authority of Telecommunications under Decree 163/2024 — a single-window mechanism replacing the previous 03–05 sets sent to multiple agencies. This article does not state a specific processing timeline, as secondary-source figures have not been verified against the original text.
7. Cases requiring only registration/notification or exempted
- Some services require only registration or notification (Article 41), not a license;
- Exempted from licensing/registration/notification (Article 42): trading in telecom goods; telecom service agents; leasing transmission lines to provide telecom application services; private telecom networks for internal use.
8. New points vs. the old regime
- Law 24/2023 and Decree 163/2024 extend regulation to data centers, cloud computing and OTT/basic internet-based telecom services — with no foreign ownership cap.
- License validity: up to 15 years for network-based; up to 10 years for non-network.
- After the 2025 ministry merger: state management of telecommunications sits with the Ministry of Science and Technology; the Authority of Telecommunications licenses directly.
- Administrative simplification: single window (Authority of Telecommunications); new rules on cross-border telecom services, telecom resale and telecom infrastructure sharing.
9. Key notes
- Licensing conditions are in Article 36 (not Article 35); license types are in Article 35; validity is in Article 33, Clause 2 — cite correctly.
- Licensing authority: the Authority of Telecommunications, Ministry of Science and Technology — not the “Ministry of Information and Communications”.
- The minimum charter capital requirement applies only to network-based licenses; no figure is stated as it has not been verified in Decree 163/2024.
- The 49%/65% ratios originate from WTO/FTA commitments — state the source; do not attribute the figures to statutory articles.
10. Frequently asked questions
What is the maximum foreign ownership in a Vietnamese telecom enterprise?
Up to 49% for network-based services (joint-venture form); up to 65% for non-network services; no cap for basic internet-based telecom services, data centers and cloud computing. These ratios originate from Vietnam’s WTO/FTA commitments.
Which authority issues telecom licenses now?
The Authority of Telecommunications, Ministry of Science and Technology (delegated under Circular 13/2025/TT-BKHCN, effective 01/9/2025).
How long is a telecom license valid?
No more than 15 years for network-based licenses; no more than 10 years for non-network licenses (Article 33, Clause 2).
Is minimum capital required for a non-network telecom license?
No. Under Article 36, Clause 3, non-network licenses only need to meet Points (a), (c), (d) — no minimum charter capital requirement.
Note: This article provides reference information only and is not legal advice. The content was researched from statutory legal texts and drafted by AI; it will undergo FLAT Law Firm’s QA council review and approval before publication; it is not legal advice from a human lawyer. Regulations may change; please check the current legal texts before relying on this information.
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