VietNamNet Bridge - A debate has been raised about Article No 292 of the 2015 Criminal Code, to take effect on July 1, on illegally providing services on computer and telecommunication networks. 

The article stipulates that if individuals and organizations provide services without licenses, or provides services which are not written in licenses, and make a profit of VND50-200 million, or have revenue of VND500 million-2 billion, they will be fined VND200-500 million.

Besides gold trading via accounts, e-commerce trading floors and MLM (multi-level marketing), payment services, online electronic games and other services on computer & telecommunication networks will all be covered by the law.

Nguyen Van Tuan, deputy CEO of VN Corp, commented that the article could be interpreted that if someone sets up websites or open forums with want ads, and writes games and posts games on app stores to earn money from ads without licenses, like Nguyen Ha Dong who wrote Flappy Bird, they may be imprisoned and have assets seized.

“It is very difficult to obtain licenses, especially licenses for games, in Vietnam,” he said.

“Startups usually have to test their new models, and if they have to wait for licenses, their opportunities may be missed,” he commented.

Tuan thinks that the new law will affect the startup community and prompt startups to set up their businesses in other countries such as Singapore, the US and Hong Kong instead of Vietnam.

Agreeing with Tuan, Nguyen Trong Nghia, an advisor to startups, warned that the law may make startups shrink back.

“The article of the law is contrary to the ‘entrepreneurship spirit’ mentioned by the government in recent days,” Nghia said, warning that Vietnamese businessmen may choose to set up businesses in other countries where the policies are more open.

Nghia went on to say that the article will place difficulties for technology startups, whose typical characteristic is global coverage. 

Since the businesses can have global coverage, the turnover may come overnight and this cannot be anticipated even by business owners.

“As such, they may become criminals overnight,” he commented.

Meanwhile, Lawyer Le Thiep from Hoan Cau Law Firm, thinks that the game developers like Nguyen Ha Dong must be considered as ‘software programmers’, not service providers; therefore, in Dong’s case, there is no need to apply for license.

Thiep said that one must apply for business registration if opening websites selling goods or providing technology solutions.

Tran Huu Linh, head of the E-commerce and Information Technology Agency, has told the press that violations in e-commerce to date have mostly been given administrative fines, and applied to businesses and legal entities.

Luckily, the National Assembly has decided to postpone the implementation of the amended Penal Code to fix errors.

VNE