Decree 147/2024/ND-CP on management of internet services and online information - Part 2: Impact on the field of social networks and online information sites

Decree 147/2024/ND-CP (Decree 147) on management, provision and use of internet services and online information in Vietnam, effective from December 25, 2024, will have an impact on domestic and foreign organizations participating in the management, provision or use of internet services and online information such as social network service providers, online application providers, application stores and online game service providers.

Impacts of Decree 147 on individuals and businesses operating/using social networks and online information sites

(i) According to Decree 147, foreign social networks are defined as foreign organizations providing cross-border service (Article 24.6.a). Foreign organizations providing social network services to users in Vietnam will be subject to additional obligations in addition to the obligations prescribed in Decree 72 if they use data storage rental services in Vietnam or attract an average of more than 100,000 monthly visits from Vietnam (calculated over a period of six consecutive months). These additional obligations include notifying the contact information to the Ministry of Information and Communications (“MIC”) and cooperating with MIC in handling violations (Article 23.3.a):

· The Provider must retain information related to service users from Vietnam when they register for an account, including full name, date of birth, and mobile phone number or personal identification number registered in Vietnam. In the case of users under 16 years of age, the account must be registered with the information of their parents or legal guardians, who will also be responsible for monitoring the user's activities (Article 23.3.đ).

· The account verification process stipulates that service user accounts must be verified using a mobile phone number registered in Vietnam or, in the case of no mobile phone number in Vietnam, a personal identification number (Article 23.3.e).

· For commercial live streaming activities (livestream), the account must undergo verification via a personal identification number. Posting, commenting, live streaming and sharing functions are reserved for verified accounts only (Article 23.3.e).

· Regarding child protection, providers must classify and label content deemed inappropriate for minors and implement appropriate online safety measures (Article 23.3.g).

· Online platforms must: 1) cooperate with Vietnamese authorities to provide content search tools (Article 23.3.n); 2) scan content as directed (Article 23.3.m); and 3) establish agreements with Vietnamese press authorities for media use.

· Regarding compliance and reporting requirements, providers are obliged to disseminate information related to Vietnamese laws related to internet use and cybersecurity to users and submit annual reports to MIC no later than November 25 each year (Article 23.3.q). In particular, foreign providers who do not notify MIC of their contact information will be prohibited from providing live streaming functionality or engaging in revenue-generating activities targeting users in Vietnam.

(ii) Decree 147 restricts the use of domain names “.vn” which must not be similar or identical to the name of press authorities, and must not contain phrases that can be easily confused with press authorities or press product if the registrant is not press authorities (Article 9.5.d).

(iii) Decree 147 restricts the choice of method of signing documents when submitting “domain name registration” documents(Article 9.8). An unclear issue regarding the use of “digital signatures” is whether it is possible to use foreign “digital signature” applications such as “DocuSign” (which is very popular in the market) or not?

(iv) Decree 147 restricts the use of sub-domain names, according to which “Agencies and organizations are only allowed to use domain names under registered domain names for member units and individuals working in their agencies and organizations” (Article 9.10).

(v) Vietnamese and international domain names must be registered for use in accordance with the provisions of Decree 147/2024/ND-CP and Circular 24/2015/TT-BTTT. Enterprises need to check whether their domain names have been registered for use with the International Domain Name Administrator.

(vi) Decree 147 stipulates that the License to establish a general online information sites, License/Certificate of notification of provision of social network services is no longer valid when the agency, organization, or enterprise is dissolved, bankrupt, or the general online information sites or social network has been transferred to another agency, organization, or enterprise (Article 24.7.b). However, there is no provision that if the enterprise owning these Licenses changes ownership, the Licenses will expire and must be re-registered. This is a content that needs to be noted when the Enterprise intends to conduct Mergers & Acquisitions in the future.

(vii) Decree 147 stipulates in detail the information content that must be displayed and how to display each specific content on the general online information sites and social network (Article 24.9). Enterprises need to review their general online information sites and social network to ensure that they have fully and correctly displayed the information content according to regulations.

(viii) Decree 147 also adds many regulations on technical systems and technical measures that businesses must meet to: store information of service users in Vietnam; authenticate social network user accounts using mobile phone numbers in Vietnam, set up warning mechanisms and use information filtering tools, etc.

(ix) Decree 147 stipulates that the Licenses to establish news aggregator sites granted under Decree No. 72/2013/ND-CP and Decree No. 27/2013/ND-CP will expire according to the granted term, however, "if there is an activity of linking with press authorities to produce content", it is necessary to re-issue this license. Businesses need to review their general online information sites to comply with the regulations.

(x) Decree 147 stipulates that the License to provide social network services granted under Decree No. 72/2013/ND-CP and Decree No. 27/2013/ND-CP will expire according to the granted term. Within 90 days from the effective date of this Decree, foreign organizations, enterprises and individuals providing cross-border information to Vietnam and organizations and enterprises providing social network services domestic verification of active accounts of service users according to regulations.

ALTAS Services

(i) Conducting Legal Review of enterprises operating in the field of providing social network services, news aggregator sites, domain name registration to assess compliance with Decree 147;

(ii) Consulting and drafting compliance forms of Decree 147 for enterprises;

(iii) Consulting, drafting documents, performing registration procedures for granting License/Certificate of notification of providing social network services;

(iv) Consulting, drafting documents, performing registration procedures for granting License to establish general online information sites;

(v) Consulting, drafting documents, forms on personal data protection, player information protection in compliance with legal regulations.

Conclusion

Decree 147 provides a comprehensive regulatory framework designed to enhance state oversight of internet services, especially those provided by cross-border entities. Domestic and foreign businesses must carefully consider these new requirements to ensure compliance with Vietnamese law. Businesses should conduct a thorough Legal Review by experienced lawyers to understand and meet the requirements of Decree 147 in the course of their business operations.

ALTAS LAW is committed to supporting investors and businesses during this volatile period. Please contact Partner Chris Luong at chris.luong@altas.vn if you need further information or assistance with legal procedures.

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Written: Luong Van Chuong - Partner Lawyer at  ALTAS Law & Dang Thi Ngoc Lan - Legal Senior Assistant

Date: 20/02/2025