The amended law on telecommunications is expected to address current difficulties while creating more room for future development. — Photo courtesy of MoST

HÀ NỘI — The National Assembly has passed amendments to the Law on Telecommunications, aiming to improve the legal framework for digital infrastructure and support national digital transformation.

The amendments were adopted at the first extraordinary sitting of the 16th-tenure National Assembly. They also revise several provisions of the laws on radio frequencies, electronic transactions and technology transfer.

Removing bottlenecks

More than two years after the 2023 Law on Telecommunications took effect, Việt Nam’s telecommunications market has seen strong growth.

5G networks have been widely commercialised, while fibre-optic infrastructure now reaches almost all communes. Data centres and cloud computing services are also expanding rapidly as demand for connectivity grows alongside artificial intelligence (AI), the Internet of Things (IoT) and the digital economy.

However, some regulations have yet to keep pace with technological development.

Several administrative procedures remain overlapping, while licensing can take considerable time. Some regulations also provide businesses with insufficient room to invest in new infrastructure and develop new digital business models.

The Government therefore proposed targeted amendments focusing on decentralisation, administrative reform and regulations for emerging sectors.

Key changes

A key change is greater decentralisation in telecommunications management. More procedures will be handled by competent authorities at appropriate levels rather than being concentrated at the central level, which is expected to shorten processing times and reduce compliance costs for businesses.

The amendments also remove or simplify several business conditions, making it easier for companies to develop telecommunications infrastructure, particularly 5G networks, data centres and digital platforms.

The law also updates regulations governing telecommunications resources and infrastructure use.

These provisions are designed to align with new rules on planning, investment and digital transformation and reduce overlaps between different laws.

Supporting digital infrastructure investment

Việt Nam aims to develop digital infrastructure as strategic infrastructure alongside transport and power networks. Businesses need to invest tens of trillions of đồng each year in 5G, fibre-optic networks, data centres, cloud computing and AI infrastructure.

Lengthy investment procedures and inconsistent regulations could slow such projects. With technologies now reaching the market within months rather than years, simplifying administrative procedures is expected to help businesses cut costs and bring new technologies to market more quickly.

The changes also come as Việt Nam seeks to attract global technology companies and compete for investment in data centres, cloud computing infrastructure and large-scale AI projects.

The amended telecommunications law is expected to address existing difficulties while creating greater room for future development. The changes reflect a broader approach to regulation in which legislation keeps pace with technological development and supports innovation rather than becoming a barrier to it.

The move is expected to create a more transparent and favourable investment environment while encouraging telecommunications businesses to accelerate investment in digital infrastructure. This will help strengthen the foundations of Việt Nam’s digital economy and improve the country’s competitiveness. — VNS