return icon Vietnamnet.vn

Vietnam keeps tabs on digital advertising

The Vietnamese government’s new initiative on cross-border advertisement on digital platforms like YouTube, Google, and Facebook is deemed a step up from previous legislation, particularly regarding censorship and tax obligations.

{keywords}
Social network advert spending in 2020 in Vietnam came to $58 million. Photo: Shutterstock

Local authorities last week officially approved a draft decree on amending and supplementing Decree No.181/2013/ND-CP issued in 2013 that focuses on the Law on Advertising. The draft has been officially promulgated and named Decree No.70/2021/ND-CP, which will take effect on September 15.

According to Baker McKenzie, cross-border advertising services in Vietnam are defined as “the use of electronic information sites by foreign organisations and individuals to provide advertising services from systems located outside of Vietnam, for users in Vietnam, with revenues generated in Vietnam.”

Tran Manh Hung, principle and country managing partner at Baker McKenzie noted, “The definition remains very broad and aims to cover both websites and applications providing advertising services.”

Under Decree 70, cross-border advertising service providers shall be responsible for reviewing and checking advertisements published on their platforms to ensure that advertisements are compliant with the Law on Advertising and the Law on Cybersecurity.

In addition, cross-border advertising services have to prevent and remove infringing content upon request of the Ministry of Information and Communications (MIC) and provide information about organisations and individuals involved in such activities that appear illegal to competent authorities upon request.

Platforms that run ads are also required to notify the MIC of their contact information before providing cross-border services in Vietnam. The MIC’s Department of Radio, Television, and Electronic Information will process these submissions and send confirmation within seven working days.

Richard Burrage, CEO of market research firm Cimigo Vietnam told VIR, “I am pleased that platforms should delete illegal content and pay taxes. I suspect the advertisers will comply and continue with their digital ads. However, there will be some interruptions as the data volume will be huge.”

In addition, the decree stipulates that platforms must also pay taxes in Vietnam. The MIC estimates that Facebook boasts 65 million Vietnamese users, YouTube around 60 million, and TikTok 20 million.

Channel News Asia stated that about 40 freshly-minted regulations on popular social media platforms have been adopted worldwide in the last two years, including Vietnam’s Law on Cybersecurity. The European Union last December proposed the Digital Services Act, which requires tech giants to tackle illegal content such as hate speech and child pornography. The United Kingdom and other countries are also drawing up legislation to regulate illegal or otherwise inappropriate online content, including discriminative and racist content.

According to the Vietnam Digital Report 2021 by London-based media firm WeAreSocial released earlier this year, the total online advertising spending in Vietnam in 2020 reached $290 million, including more than $115 million on digital search ads. More than $58 million was spent on social networks, over $45 million on banner ads, $34 million on online video ads, and display ads reached nearly $36 million.

According to data from the Online Advertising Market Report conducted by marketing agency Adsota, revenues from online advertising in Vietnam are predicted to reach approximately $400 million next year.

Le Quang Tu Do, deputy director of the Department of Radio, Television, and Electronic Information said, “This revised decree aims to keep a firm hand on advertising activities of tech giants, thus exerting positive influence on the legally-operating news organisations and broadcasters in Vietnam.”

Source: VIR

Tax duty to be obligatory for Google, Facebook soon

Tax duty to be obligatory for Google, Facebook soon

Foreign organizations and individuals providing cross-border advertising services generating revenue in Vietnam must pay taxes and comply with Vietnam’s laws.

Tax collections from cross-border platforms too low

Tax collections from cross-border platforms too low

The amount of tax collected from cross-border platforms in the first 11 months of 2020 was about VND1 trillion. But the figure doesn’t truly reflect the real activities of the platforms in Vietnam.

MORE NEWS

Authority maintains tough stance on safety violations on Hanoi’s “railway café street”

The Vietnam Railway Authority has insisted that it will take a hard line on railway traffic safety violations along Hanoi’s popular "railway café street" sketching across the inner districts in its recent report to the Ministry of Transport.

Foreign hi-tech firms expand investment in Vietnamese market

Molex, the world’s leading supplier of connectors and interconnect components, has unveiled its ambitions to expand its existing manufacturing plant in the Vietnamese market by developing its plant in Hanoi.

VIETNAM BUSINESS NEWS OCTOBER 4

Hai Phong lures more than 1.24 billion USD in first nine months

Vietnam rakes in US$16.05 billion from tourism in nine months

Vietnam earned some 394.2 trillion VND (16.05 billion USD) from tourism in the first nine months of this year, equivalent to 78% of the figure recorded in 2019 before the COVID-19 pandemic broke out.

VIETNAM NEWS HEADLINES OCTOBER 4

Vietnam invests in 10 energy technologies

Vietnamese poetry collection published in Canada

A poetry collection from five female translators based in Hanoi, entitled Ngũ Sắc Ánh Sáng (5 Sights of Light), has been introduced to Canadian readers by Ukiyoto Publishing.

Multi-billion thermal power project needs more capital

The Ministry of Industry and Trade (MOIT) has asked for ministries' opinions on solutions to problems related to the balance sheet of the Vung Ang 1 thermal-power plant.

The best September photos on VietNamNet

Hot air balloons with the Vietnamese national flag of 1,800m2 on the banks of the Saigon River, Typhoon Noru making landfall in Quang Nam Province, the roofs of many houses being blown away...

BSR to expand Dung Quat Oil Refinery

The Ministry of Industry and Trade (MOIT) has asked Binh Son Refining and Petrochemical JSC (BSR) to clarify some issues related to its project on expanding Dung Quat Oil Refinery.

Dutch conductor to lead concert at Opera House

Conductor Leon Bosch from the Netherlands will lead a concert featuring masterpieces by European composers at the HCM City Opera House on Saturday, October 8.

‘578’ to represent Vietnam at Oscars

An action film starring Miss Universe Vietnam 2018, H'hen Niê, 578: Phát Đạn Của Kẻ Điên (578: Magnum), has been selected as Vietnamese representative at the 95th Oscars, 2023.

USD surges to VND24,000, US$1.7 billion withdrawn from circulation

The State Bank of Vietnam (SBV) withdrew nearly VND41 trillion ($1.7 billion) through open market operations as the US dollar rose to over VND24,000 on September 26-30, 2022.

HCM City to build a series of new traffic projects

HCM City is speeding up procedures to start the construction of key traffic works at gateways by the end of the year, according to HCM City's Department of Transport.

Burning garbage in Hanoi threatens residents' health, property

There have been consecutive fires caused by people's poor awareness, who were burning garbage and straw in residential areas, causing fires recently in Hanoi.

New cargo airline still waiting for license

After the Prime Minister agrees on the establishment of IPP Air Cargo, the Ministry of Transport (MOT) will implement procedures to grant a license to the air carrier, according to MOT Deputy Minister Le Dinh Tho.
back_to_top