Several participants at a recent press conference held by the Ministry of Information and Communications (MIC) expressed concern that the recent inspection of TikTok conducted may affect decisions by foreign companies to set up representative offices in Vietnam. 

Le Quang Tu Do, head of the Authority of Broadcasting and Electronic Information (ABEI), said  cross-border platforms follow their own business model.

In general, cross-border platforms, when doing business in Vietnam, face both favorable conditions and difficulties. The same will occur when they set up representative offices or legal entities in Vietnam.

“When they observe Vietnamese laws, they will have to bear stricter supervision and satisfy more requirements, but at the same time they will have favorable conditions to develop their business models,” Do said.

“There is a perfect legal framework with regulations related to the opening of representative offices in Vietnam. The presence of representative offices in Vietnam is mandatory for some subjects, while cross-border platforms consider and choose business models for themselves,” he added.

Asked if MIC has signed agreements with other ministries and branches on cooperation to control cross-border platforms such as TikTok, Do said it is obvious for MIC to do this.

MIC has signed agreements with the Ministry of Public Security (MPS) and Ministry of Finance (MOF) on cooperation in many issues, including the supervision of cross-border platforms and online content.

“In recent years, we have been cooperating closely with relevant ministries and branches to strengthen management. Thanks to this, we have gained new achievements,” Do said.

The inspection tour of TikTok recently was the first time that six ministries and branches joined forces, including MIC, Ministry of Public Security, Ministry of Industry and Trade (MOIT), Ministry of Culture, Sports and Tourism (MCST), Ministry of Labor, War Invalids and Social Affairs (MOLISA), Ministry of Finance, and the Ho Chi Minh Communist Youth Union Central Committee.

According to MIC, many cross-border platforms have recently set up offices in Vietnam or plan to do this.

Currently, TikTok has two legal entities, including a representative of TikTok Pte Ltd in HCM City and TikTok Vietnam Technology Co Ltd.

Vice president of Netflix Josephine Choy at a working session with MIC last March said the company was following procedures to set up a legal entity in Vietnam.

The decision is the latest move by Netflix to implement Decree 71 on the management, provision and use of broadcasting services under which foreign companies in the pay-TV market in the OTT mode, without channels, must obtain licenses as domestic companies do.

Le My