At a press conference to announce the Vietnamese State President’s order on the Telecom Law, Deputy Minister of Information and Communications Le Nam Thang said, with an average annual growth rate of 30 percent, the Vietnamese telecom market is expected to gain revenue of between US$6-US$7 billion in 2010.
In parallel with opening up the telecom market, regulations of the Telecom Law are required to ensure information safety and security and plays an important role in the state’s control and management in the sector, he said.
Could you say something about new contents of the Telecom Law compared to the current legal regulations?
The Telecom Law includes 10 chapters, 63 articles and covers a wider scope and more objects against the current telecom regulations. To date, the concept of telecom is simply understood as a narrow meaning of telecom infrastructure.
With more specific and stricter regulations, the law will be a legal corridor to attract more economic sectors’ participation in the telecom business, particularly network infrastructure development.
Since July 1 next year, enterprises in different economic sectors set up under Vietnam’s laws will be allowed to provide telecom services. The new regulations will assure a fair competition and transparent business environment.
The state still holds stake in several major telecom firms which play a key part in the national telecom sector, especially strict regulations on securing rights and benefits of users.
The law also stipulates the application of market mechanism in managing telecom capacity and internet resources. It also includes the regulations of examination, auction and the licensing of use rights of telecom capacity of internet resources besides the direct distribution.
Is the state’s major stake in a number of big telecom firms in contradiction with the Telecom Law’s regulations on a fair competition market?
I want to emphasize that the state’s major stake is important to the entire national telecom industry and directly affects the country’s defense and security.
Enterprises are entitled to fix their telecom charges. The state only regulates the floor price levels in some leading companies to avoid big firms’ competitive prices to hinder smaller ones. Telecom services providers will have to submit the charge reports to the Ministry of Information and Communications for approval. This is the best way to create a healthy competition market. The present fixed telephone charge levels are regulated by the prime minister. In the upcoming time, the ministry will be assigned to do this, but only for the floor prices.
In addition to opening up the telecom market, the Telecom Law is aimed to assure information safety and security and serve the state’s control and social orientations in the sensitive telecom market.
At present, telecom businesses still use sample contracts in which articles are mainly profitable for them, but customers have no other choices. Will the law deal with this?
The law has some regulations to secure users’ rights and benefits, including sample contracts to prevent the providers’ force to clients.
Users have the rights to lodge complaints on telecom charges and service quality blamed for the suppliers. Enterprises have to check all of equipment for charge calculation before delivering them to customers. If they halt service supply to customers unreasonably, the will have to refund charges and compensate for them in case of any damages. This will be contained in sample contracts between suppliers and users.
What are your comments on the Vietnamese telecom after the law takes effect?
We have opened up the telecom, which is suitable for international practices. Presently, with an average growth rate of 30 percent, the Vietnamese telecom market is expected to reach revenue of between US$6 and US$7 billion in 2010. When the Telecom Law, the legal corridor, is really open and transparent, Vietnam can lure more foreign investors in this market.
Over the past time, the local telecom market is among Vietnamese sectors gaining the highest growth rate. The Telecom Law is hoped to boost the market’s development.
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