VN social networking sites shaken by draft amendment

More than 500 local social networking sites will need to secure a permit to continue earning revenue if the draft decree amending Decree 72 is approved.

local social networking sites shaken by draft amendment
Over 500 small local social networking sites may have to apply for a permit to continue earning money from their services

Social networking sites with more than one million users or 10,000 interactions a month will have to get licensed through the Ministry of Information and Communications (MIC) to operate in the country, according to Article 23 of the draft amendment to Decree No.72/2013/ND-CP outlining the management, provision, and use of internet services and online information. 

Moreover, only licensed platforms will be allowed to charge subscription and usage fees, not even for live-streaming.

At the end of December 2019, Vietnam had 614 social networking sites, less than 10 per cent of which had more than one million users. Thus, the remaining 90 per cent (more than 500 platforms) do not satisfy the requirements to charge users.

The draft also mentioned that sites with less than one million users or 10,000 interactions a month would have to file a document to the appropriate authorities to get permission to maintain operations.

Discussing with VIR, Trinh Minh Giang, CEO of Venture Management Consulting Group specialised in tech startups, said that small-scale platforms will find it more difficult to earn revenue than their larger counterparts. Accordingly, setting up a social network requires large investment and even the largest local platforms in Vietnam have yet to turn a profit. The common difficulty for local social networks is luring in more users to generate larger revenue streams – which they do by generating user data to attract advertisers. As a result, social networks of a small scale (less than one million users) have been struggling to survive in the race against Facebook and Google's YouTube.

Hence, the amendment would not resolve the issues facing small-scale platforms which heavily outnumber larger platforms in Vietnam. Therefore, Giang advised consulting the related laws of other countries, especially those which have succeeded in creating a win-win situation for both the government and companies, before outlining similar rules in Vietnam. “This will allow the platforms to be hit less by new regulations.”

On the other hand, the draft does not fully cover the gaps related to overseas platforms such as Facebook and YouTube which have been operating in Vietnam without licenses and gathered the lion's share of the country's advertising market.

Indeed, local social networks running in Vietnam without licenses or with expired licenses are fined for VND20-30 million ($870-1,300) following Article 63 of Decree No.174/2013/ND-CP stipulating the administrative sanctions in the telecommunication and postal services. Similar to the latest draft, it has no clauses related to violations by overseas platforms.

 

Consequently, local platforms have been disadvantaged compared to international players for a long time. Even if the new rules could be extended to overseas platforms, the sanctions are tiny compared to their earnings in Vietnam and would prove little deterrent.

Responding to VIR, Nguyen The Trung, deputy head of Technology Solutions and Security for Local E-government, said that based on the $15-20 Facebook earns from each local user, the social network earns about $1 billion a year in revenue in Vietnam. Similarly, Google ranked second with the annual revenue of hundreds of millions of US dollar.

Previously, the MIC also promisedto take the necessary technical measures in case Facebook shows no willingness to comply with Vietnamese regulations. According to Giang from Venture Management Consulting Group, there should be discussions between the drafting board and representatives of overseas social networks so that the appropriate sanctions can be worked out that would help balance the benefits of operators and business users of these platforms.

“If the platforms are forced to terminate their operations in Vietnam because they do not have licenses, these users will be the first to suffer. They will lose a great deal of important data related to their business, and lose an effective business tool,” said Giang. “The drafting board should also work with international experts to research policies of nations with an effective online environment.”

Otherwise, assessing the current sanctions under Decree 174, Giang said that the local government encourages the development of "Made in Vietnam" platforms, so local platforms, especially small-scale ones, will be supported.

“Social networks could get a fine of medium severity for their first violation of the new rules, which would then increase for the next infractions,” said Giang.

Van Anh

Vietnamese network providers among top 150 telecom brands

Vietnamese network providers among top 150 telecom brands

Vietnam’s top four network providers, namely VNPT, Vinaphone, Viettel, and MobiFone, are listed among top 150 most valuable and strongest telecom brands worldwide in 2020, according to an annual report recently released by UK-based Brand Finance.

Vietnam leads Tutela’s mobile network performance ranking

Vietnam leads Tutela’s mobile network performance ranking

Vietnamese mobile subscribers have a better experience in network quality and speed than users in many Southeast Asian countries such as Indonesia, Thailand, Malaysia and the Philippines, according to a report by Tutela.

 
 

Other News

.
Vietnam’s tech businesses prosper amid pandemic
Vietnam’s tech businesses prosper amid pandemic
SCI-TECH & ENVIRONMENTicon  10/12/2021 

Since the Covid-19 pandemic began, technology businesses have shown their potential by maintaining an impressive growth momentum.

Digital transformation to be main driver for Vietnam’s economic recovery, development
Digital transformation to be main driver for Vietnam’s economic recovery, development
SCI-TECH & ENVIRONMENTicon  09/12/2021 

The National Forum for Development of Digital Technology Businesses 2021 will discuss solutions that will enable digital transformation to be the driving force for economic recovery and development.

Digital transformation: one touch buys a bus ticket
Digital transformation: one touch buys a bus ticket
FEATUREicon  09/12/2021 

Digitizing public transport has led to practical benefits for consumers.

Former well-known hacker to publish autobiography
Former well-known hacker to publish autobiography
SCI-TECH & ENVIRONMENTicon  09/12/2021 

Ngo Minh Hieu, or Hieupc, who once operated a massive international hacking and identity theft scheme, has revealed that he will publish a book about his life, especially the time in jail in the US.

CNN broadcast highlights sneakers made from coffee grounds
CNN broadcast highlights sneakers made from coffee grounds
SCI-TECH & ENVIRONMENTicon  08/12/2021 

Vietnamese sneakers made from discarded coffee grounds and plastic bottles have been introduced by CNN in their “Innovate” programme.

Vietnam accounts for nearly half of brute-force attacks versus RDP
Vietnam accounts for nearly half of brute-force attacks versus RDP
SCI-TECH & ENVIRONMENTicon  08/12/2021 

Kaspersky detected more than 47 million remote desktop protocol (RDP) threats in Vietnam in the first half of 2021, accounting for nearly half of all cases in Southeast Asia.

Over 1,000 organizations in Vietnam capable of supporting startups
Over 1,000 organizations in Vietnam capable of supporting startups
SCI-TECH & ENVIRONMENTicon  08/12/2021 

Vietnam currently has over 1,000 organizations capable of supporting startups, including technology startups, with 202 coworking zones, 79 business incubators and 38 business promotion organizations.

Mondelez Kinh Do achieves 95% progress on sustainable packaging goals
Mondelez Kinh Do achieves 95% progress on sustainable packaging goals
SCI-TECH & ENVIRONMENTicon  06/12/2021 

Mondelez Kinh Do continues to make progress towards its ambitious commitments to reducing the environmental impact of packaging and tackling plastic waste.

Student start-up uses UVC light to kill viruses
Student start-up uses UVC light to kill viruses
SCI-TECH & ENVIRONMENTicon  06/12/2021 

A group of students from Ly Tu Trong College (HCM City) came up with an idea to integrate UVC light in refrigeration units to eliminate viruses and bacteria, including SARS-CoV-2. 

HCMC records lowest temperature since beginning of 2021
HCMC records lowest temperature since beginning of 2021
SCI-TECH & ENVIRONMENTicon  05/12/2021 

Deputy Head of the Forecasting Division of the Hydro-meteorological Station in the Southern Region Le Dinh Quyet informed that HCMC recorded the lowest temperature of 22oC in the early morning of December 4 since the beginning of the year.

The business story of famous Vietnamese streamers
The business story of famous Vietnamese streamers
FEATUREicon  05/12/2021 

It is difficult to find success when doing business, and even streamers with good financial backgrounds are no exception.

Wildlife conservation: Risks and efforts
Wildlife conservation: Risks and efforts
SCI-TECH & ENVIRONMENTicon  04/12/2021 

According to the Wildlife Conservation Society (WCS), in the period from 2013-2017, Vietnam recorded 1,504 wildlife rule violations involving 1,461 suspects.

Major amazing astronomical phenomena to be observed this December
Major amazing astronomical phenomena to be observed this December
SCI-TECH & ENVIRONMENTicon  03/12/2021 

Astronomy lovers will have the unique chance to enjoy major amazing phenomena in December this year, according reports by the Hanoi Amateur Astronomy Society (HAS).

Vietnam must stay on the digital transformation path: Prime Minister
Vietnam must stay on the digital transformation path: Prime Minister
FEATUREicon  04/12/2021 

Prime Minister Pham Minh Chinh chaired the first meeting of the committee via a videoconference on November 30, 2021.

Scuba diver spent nearly two decades cleaning up the ocean
Scuba diver spent nearly two decades cleaning up the ocean
SCI-TECH & ENVIRONMENTicon  04/12/2021 

Scuba diver Nguyen Van Duc is dedicated to cleaning the ocean and he hopes his work will inspire others to do the same.

Marine plastic waste an urgent issue in coastal Vietnam
Marine plastic waste an urgent issue in coastal Vietnam
SCI-TECH & ENVIRONMENTicon  03/12/2021 

Vietnam needs to carry out practical measures to manage and reduce marine plastic waste to ensure sustainable development of the fishery industry, according to experts at a workshop held in Hanoi on Wednesday.

Strategy on developing digital economy & digital society submitted to gov’t
Strategy on developing digital economy & digital society submitted to gov’t
SCI-TECH & ENVIRONMENTicon  06/12/2021 

The Ministry of Information and Communications has submitted to the Government a draft Strategy for developing Vietnam’s digital economy and digital society, which may be approved this December. 

Female valedictorian discovers security vulnerabilities of US tech giant Oracle
Female valedictorian discovers security vulnerabilities of US tech giant Oracle
SCI-TECH & ENVIRONMENTicon  03/12/2021 

Before becoming valedictorian at the Academy of Cryptography Techniques, Le My Quynh had been been honored by a US tech group for her discovery of important security flaws.

A month after launch, Vietnam has yet to receive signal from NanoDragon satellite
A month after launch, Vietnam has yet to receive signal from NanoDragon satellite
SCI-TECH & ENVIRONMENTicon  02/12/2021 

Twenty-two days after its launch into orbit, the developer of the NanoDragon satellite has not received a signal.

Netflix denies purchase of phimmoi domain name
Netflix denies purchase of phimmoi domain name
SCI-TECH & ENVIRONMENTicon  03/12/2021 

Vietnamese users were surprised when they were redirected to Netflix.com when they tried to access phimmoi.net, a website that provides pirated movies.

 
 
 
Leave your comment on an article

OR QUICK LOGIN