Set up a media company in Vietnam

With the rapid and continuous development of the current technological era, the demand for disseminating and receiving information is growing. This is considered one of the fields with significant potential for development. The establishment of media companies is increasing, bringing substantial profits to businesses and contributing to economic growth. In the following article, Viet An Law will provide information related to the conditions to set up a media company in Vietnam under the current legal regulations.

Legal basis for establishing a media company in Vietnam

In addition to the provisions of the Enterprise Law 2020 and its guiding documents regarding the establishment of enterprises, businesses operating in the field of media are also governed by specialized laws on information technology, as stipulated in Decree 72/2013/ND-CP on the management, provision, and use of internet services and online information, amended and supplemented by Decree 27/2018/ND-CP and Decree 150/2018/ND-CP.

Definition of a media company

A media company engages in business activities related to the field of information and communication. Specifically, the company will aggregate, organize, and distribute content services to users. This includes activities such as providing videos, graphics, and other advertising campaign services to clients who do not have an in-house marketing department, involving the development of a comprehensive business plan for the client.

Some media business activities according to legal regulations

Market access conditions for certain media activities for foreign investors

According to the specific service commitment schedule of the Working Party Report on Vietnam’s accession to the WTO (WT/ACC/VNM/48), for film production, distribution, and screening services, all films must be content-checked by the competent Vietnamese authorities. Additionally, certain sectors in the media field have specific restrictions on the form of commercial presence in Vietnam, such as:

• Film distribution services (CPC 96113, excluding video tapes): Only in the form of business cooperation contracts or joint ventures with Vietnamese partners who have been licensed to provide these services in Vietnam. The foreign capital contribution must not exceed 51% of the legal capital of the joint venture.
• Film production services (CPC 96112, excluding video tapes): Only in the form of business cooperation contracts or joint ventures with Vietnamese partners who have been licensed to provide these services in Vietnam. The foreign capital contribution must not exceed 51% of the legal capital of the joint venture.
• Film screening services (CPC 96121): Only in the form of business cooperation contracts or joint ventures with Vietnamese partners who have been licensed to provide these services in Vietnam. The foreign capital contribution must not exceed 51% of the legal capital of the joint venture.

You can contact Viet An Law for support and consultation on market access conditions in specific media sectors according to the agreements Vietnam has signed and Vietnamese law.

Legal conditions for certain media business activities

To establish a media company, in addition to meeting the basic conditions stipulated by law for establishing an enterprise, the business sector related to media is classified as a conditional business sector under the Investment Law. Therefore, for a media company to operate its business activities in the market, it must meet the additional conditions stipulated by law for that specific business sector.

Below, Viet An Law will introduce the conditions for certain business activities in the media sector.

Conditions for social network services business

Legal status of the enterprise

The enterprise must be established according to Vietnamese law with functions, duties, or registered business lines appropriate to the services and information content provided, as published on the National Business Registration Portal.

Personnel Rrequirements

For personnel responsible for managing information content:

• There must be at least one person responsible for managing information content who is either a Vietnamese national or a foreign national with a valid temporary residence card for at least six months in Vietnam from the time of application submission.
• There must be a department responsible for managing information content.

For technical personnel: There must be at least one person managing information content and one person managing technical aspects.

Regarding domain names

The domain name string must not be identical or similar to the name of a press agency if the enterprise is not a press agency.

• The social network site must use at least one “.vn” domain name and store information on servers with IP addresses in Vietnam.
• The comprehensive electronic information page and social network of the same organization or enterprise must not use the same domain name string (including subdomains, e.g., forum.vnn.vn, news.vnn.vn are different domain name strings).

The domain name must comply with the regulations on the management and use of Internet resources as stipulated in Section 2 of Decree 72/2013/ND-CP. For international domain names, there must be confirmation of lawful domain name use.

Regarding technical requirements

• The technical equipment system must store information for at least two years concerning accounts, login and logout times, user IP addresses, and the information processing logs that are posted.
• It must be able to receive and handle information violation alerts from users.
• It must detect, alert, and prevent illegal access, forms of attacks in the online environment, and comply with information security standards.
• There must be a contingency plan to ensure safe, continuous operation and recovery in the event of an incident, except for cases of force majeure as stipulated by law.
• At least one server system must be located in Vietnam, allowing at any time to meet inspection, examination, storage, and provision of information on all social network sites owned by the enterprise.

Regarding information security, information security, and information management

• There must be an Agreement on the provision and use of social network services in line with the approval documents of the source information providers to ensure the legality of the source information, and it must be posted on the homepage of the social network.
• Users must agree to the terms of service for social network services online before they can use the services and utilities of the social network.
• There must be a mechanism to coordinate and promptly remove content that violates Clause 1, Article 5 of Decree 72/2013/ND-CP within three hours at the latest from the time of self-detection or upon request from the Ministry of Information and Communications or the licensing authority (by document, phone, email).
• There must be measures to protect the confidentiality of private information and personal information of users.
• It must ensure the user’s right to decide on allowing the collection of their personal information or providing it to other organizations, enterprises, or individuals.

Conditions for comprehensive electronic information page services business

Legal status of the enterprise

Must be an enterprise established according to Vietnamese law with functions, duties, or registered business lines appropriate to the services and information content provided, as published on the National Business Registration Portal.

Personnel requirements

Content Management Personnel:

• Must have at least one person responsible for managing information content who is either a Vietnamese national or a foreign national with a valid temporary residence card for at least six months from the date of application submission.
• Must have a content management department.

Technical Personnel: must have at least one person responsible for managing information content and one person responsible for managing technical aspects..

Domain name requirements

The domain name string must not be identical or similar to the name of a press agency if the enterprise is not a press agency.

• The social network site must use at least one “.vn” domain name and store information on servers with IP addresses in Vietnam.
• The comprehensive electronic information page and the social network of the same organization or enterprise must not use the same domain name string (including subdomains, e.g., forum.vnn.vn, news.vnn.vn are different domain name strings).

The domain name must comply with the regulations on the management and use of Internet resources as stipulated in Section 2 of Decree 72/2013/ND-CP. For international domain names, there must be confirmation of lawful domain name use.

Technical requirements

• Must store content for at least 90 days from the date of posting; must store information processing logs for at least two years.
• Must be able to receive and handle information violation alerts from users.
• Must detect, alert, and prevent illegal access and online attacks and comply with information security standards.
• Must have at least one server system in Vietnam that can meet inspection, examination, storage, and provision of information at any time for all comprehensive electronic information pages owned by the organization or enterprise.
• Must have a contingency plan to ensure safe, continuous operation and recovery in the event of incidents, except in cases of force majeure as stipulated by law.

Information security, information safety, and information management

• Must have a public information management process: Define the scope of information sources, management mechanisms, and pre- publicationand post-publication checks.
• Must have a source control mechanism to ensure that the aggregated information posted is accurate according to the source information.
• Must have a coordination mechanism to remove violating content as specified in Clause 1, Article 5 of Decree 72/2013/ND-CP within three hours at the latest from detection or upon request from the Ministry of Information and Communications or the licensing authority (via document, phone, email).

Procedure to set up a media company in Vietnam

If you need consultation or support regarding the conditions to set up a media company in Vietnam, or if you wish to establish a company, please contact Viet An Law for the best support!