Legal Update: Decree 147/2024/ND-CP on the Management, Provision, and Use of Internet Services and Online Information – Part 1: Impacts and Compliance Requirements in the Online Gaming Sector

Decree 147, which comes into effect on December 25, 2024, will impact both domestic and foreign organizations involved in managing, providing, or using internet services and online information, including social media service providers, online application providers, app stores, and online gaming service providers.

A. Overview 

Decree 147/2024/ND-CP (Decree 147) on the management, provision, and use of Internet services and online information in Vietnam will take effect on December 25, 2024. This decree will impact both domestic and foreign entities involved in the management, provision, or use of Internet services and online information, including social media providers, online application providers, app stores, and online gaming service providers.

Decree 147 introduces several notable changes, including:

1. Social Media Management

Account Verification

• Purpose: Enhance transparency and user accountability on social media platforms, ensuring identity verification and preventing fraudulent activities.

• Requirement: Users may be required to verify their accounts using mobile phone numbers or personal identification numbers (ID/CCCD).

• Consequence: Non-compliance or inaccurate information may result in account restrictions or temporary suspension.

Permanent Account Suspension

• Purpose: Prevent illegal activities and negative societal impact.

• Condition: Accounts may be permanently suspended if they post content that threatens national security or have been temporarily suspended three times or more due to legal or platform violations.

• Consequence: Permanently suspended accounts cannot be recovered, and users may face legal consequences.

2. Online Gaming Management

Virtual Items

• Regulation: Virtual items, virtual currency, and reward points can only be used within the game and cannot be converted into real money, telecommunications cards, banking transactions, or physical goods.

• Purpose: Prevent illegal gambling activities and protect players from financial risks.

• Prohibition of Virtual Item Trading

• Regulation: Buying and selling virtual items, virtual currency, or reward points between players is strictly prohibited.

• Purpose: Prevent exploitation and fraud, fostering a fair and healthy gaming environment.

• Consequence: Violators may face administrative fines or criminal prosecution, depending on the severity of the violation.

3. User Responsibilities

Content Accountability

• Regulation: Users must be responsible for the content they create, store, transmit, or share online.

• Purpose: Encourage greater awareness and responsibility in online interactions while preventing illegal and unethical behavior.

• Consequence: Violators may face administrative fines or criminal prosecution based on the severity of the violation.

4. Other Key Regulations

Infrastructure Optimization

• Objective: Enhance telecommunications infrastructure, improve service quality, and encourage investment in emerging technologies such as 5G networks and data centers.

• Significance: Establish a robust foundation for the growth of the Internet and digital services, meeting the increasing user demand.

Digital Economy Development

• Guideline: The telecommunications industry will not only serve as a connectivity provider but also become a pillar of the digital economy.

• Significance: Accelerate national digital transformation, creating new opportunities for businesses and individuals.

B. Impact of Decree 147 on Online Gaming Service Providers

(i) Cross-border game distribution remains prohibited under Decree 72, requiring foreign game publishers to establish a legal presence in Vietnam to operate.

(ii) Introduction of a new "16+" age rating system and revisions to classification criteria (Article 38.1.b).

Companies must reassess their game classifications based on new standards (Article 38.2.a) or adjust classifications upon request from competent authorities (Article 38.3).

(iii) Emerging online game categories that do not fit existing classifications (G1, G2-4)
The Ministry of Information and Communications will propose appropriate management measures for approval by the Prime Minister (Article 37.1.đ).

Decree 147 "opens the door" for new online game categories without existing legal frameworks. However, special legal mechanisms may be required for their approval.

(iv) Mandatory technical systems for managing playtime for users under 18
Daily limit: 60 minutes per game and 180 minutes total for all games by the same company (Article 39.1.e).

Health warning: Display "Playing more than 180 minutes a day negatively affects health" every 30 minutes instead of a constant on-screen message (Article 39.1.g).

(v) Expiration of previously issued gaming licenses
G1 gaming licenses and G2-3-4 certificates issued under Decree 72/2013/ND-CP and Decree 27/2018/ND-CP will expire upon their granted term (Article 82.3).

Companies must apply for new licenses to avoid operational disruptions.

(vi) Prohibition on game content simulating gambling games
Games with scripts that mimic casino-style games or use playing card imagery are strictly prohibited (Article 43.1.b).

(vii) Stricter content approval and licensing renewal requirements
Game developers must apply for re-approval when there are significant changes, such as game origin modifications (Article 46.1.a).

(viii) Strengthened personal data protection regulations
Players must be allowed to opt-in or opt-out of their data being used for marketing or third-party sharing (Article 35.2).

Companies must ensure compliance with personal data protection regulations.

C. ALTAS Services

ALTAS provides legal compliance services to support gaming businesses in adapting to Decree 147, including:

• Legal Compliance Review for online gaming companies to assess compliance with Decree 147.

• Advisory & Drafting of compliance documentation under Decree 147.

• License Registration & Application for G1 online gaming service licenses.

• Certification Application for G2, G3, G4 online gaming services and game release notifications.

• Legal Documentation for personal data protection and user information security.

D. Conclusion

Decree 147 establishes a comprehensive regulatory framework to enhance government oversight of Internet services, particularly those provided by cross-border entities.

Businesses must carefully assess these new requirements to ensure compliance with Vietnamese law.

Companies should conduct an in-depth legal review with experienced lawyers to fully understand and comply with Decree 147 in their operations.

ALTAS LAW is committed to supporting investors and businesses during this regulatory transition.

ALTAS LAW is committed to supporting investors and businesses during this period of regulatory transition. For further information or legal assistance, please contact Chris Luong, ALTAS LAW Member Lawyer, at chris.luong@altas.vn.

Written by: Luong Van Chuong - Partner Lawyer at ALTAS Law

Date: 12.02.2025 

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