IT, Media, Marketing - A regultatory lanscape

This presentation has been prepared for clients and professional associates of Baker & McKenzie. Whilst every effort has been made to ensure accuracy, this presentation is
not an exhaustive treatment of the area of law discussed and no responsibility for any loss occasioned to any person acting or refraining from action as a result of material in
this presentation is accepted by Baker & McKenzie.
Baker & McKenzie (Vietnam) Ltd., a limited liability company, is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In
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© 2014 Baker & McKenzie (Vietnam) Ltd.
IT, Media, Marketing
– A Regulatory Landscape
Seck Yee Chung
Partner
Baker & McKenzie (Vietnam)
YeeChung.Seck@bakermckenzie.com
Visit VietnamBusiness.TV
for business videos, news & research

This slideshow is from a presentation at the M2 Marketing & Media events
in Ho Chi Minh City, Vietnam organized by ITV-Asia.com and VietnamBusiness.TV
To see videos from the events, interviews with speakers and
to get information on upcoming M2 - Marketing & Media Network events
Please visit VietnamBusiness.TV

© 2014 Baker & McKenzie (Vietnam) Ltd. 3
AGENDA
A. Legal Framework - Evolving
B. Fast Forward – Draft Regulations
C. Corporate Governance
D. Cyber Security

KEY MESSAGES
ARE YOU READY FOR THIS?
Who is getting caught out – you or regulators?
ENGAGE! ENGAGE! ENGAGE!
(Dialogue)
IS YOUR HOUSE IN ORDER?
PROTECT YOUR CROWN JEWELS!

LEGAL FRAMEWORK

A. LEGAL FRAMEWORK
IT/Media regulations:
 Law on E-transactions, Consumer Protection, Advertising, Competition
 E-contracts: Decree 52/2013/ND-CP
 E-commerce websites: Decree 52/2013/ND-CP
 E-signatures: Decree 170/2013/ND-CP
 Content, social networks and online games: Decree 72/2013/ND-CP
 Online advertising: Decree 181/2013/ND-CP
 Payment solutions: Decree 101/2012/ND-CP
 Registration procedures for e-commerce: Circular 12/2013/TT-BCT

A. LEGAL FRAMEWORK
Licensing/ Notification/ Registration Requirements:
1. E-commerce: Decree 52/2013/ND-CP
E-commerce sales websites: Established by business
entities/organizations/individuals to serve their own business.
Requires online notification to MOIT: online.gov.vn
E-commerce service websites: Established by business
entities/organizations/individuals to serve other entities’ business and
are required to register with MOIT: online.gov.vn and paper
submission.
 E-commerce exchange websites
 Online promotion websites
 Online auctioning websites

2. Social network & general information websites:
Decree 72/2013/ND-CP
• Social network: an information system that provides its users with such
services as storage, provision, use, search, sharing and exchange of
information, including the provision of the service of creating private
websites, forums, online chat rooms, audio and video sharing, and other
similar services.
• General information websites: websites of agencies, organizations and
enterprises that post aggregated information cited textually and
accurately from official sources and specify the names of the authors or
agencies of the official sources, and the time when such information is
published
A. LEGAL FRAMEWORK

• Local server requirement: Online social networks, general
information websites are required to have at least 1 server in
Vietnam.
• Licensing requirement: Online social networks, general
information websites must obtain license from MIC.
• Registration requirement: Information content services on mobile
telecommunications must register with MIC.
Conditions for licensing/registration require the applicants to be
established in Vietnam  unclear if this applies to offshore service
providers
A. LEGAL FRAMEWORK

Advertising and Content:
1. Prohibited content on the Internet:
• Opposing the State of the Socialist Republic of Vietnam; undermining the
national security and social order and safety; sabotaging the great
national unity bloc; conducting propaganda about wars and terrorism;
sowing hatred and contradictions among nations, races and religions;
• Propagating and inciting violence, obscenity, pornography, crimes, social
vices and superstition; harming the national fine traditions and customs;
• Disclosing state secrets, military, economic and diplomacy secrets, and
other secrets provided by law;
A. LEGAL FRAMEWORK

1. Prohibited content on the Internet (cont.):
• Providing information distorting, slandering or offending the prestige of
organizations or honor and dignity of individuals;
• Advertising, propagating and trading in banned goods or services;
spreading banned newspaper articles, literary and art works and
publications;
• Impersonating other organizations and individuals and spreading false
and untruthful information that infringes the rights and lawful interests of
others.
A. LEGAL FRAMEWORK

2. Products and services that are prohibited from being
advertised:
• Goods and services banned from trade as prescribed by law
• Cigarettes
• Alcohol products with 15% alcohol content or above (used to be 30% in Law
on Commerce)
• Dairy being breast milk substitute for infants under 24 months old, nutritional
supplements for children under 06 months old; feeding bottles and pacifiers
• Prescription drugs, non-prescription drugs recommended by competent State
agencies to use restrictively or under the doctor’s supervision.
• Pornographic products.
• Hunting rifles and cartridges, sporting weapons and products with violence-
inciting nature
• Other products, goods and services banned from advertising specified by the
Government depending on the actual requirements.
A. LEGAL FRAMEWORK

2. Products and services that are prohibited from
being advertised:
A. LEGAL FRAMEWORK
 Gray area: Sensitive
products/services: abortion, sex
toys, e-cigarettes, political
propaganda
 Competition Law perspective:
Unfair competition (accuracy of
advertisment, no comparison)

3. Anti-spam:
Prohibited acts including:
• Spamming
• Distorting header information of electronic mails or text messages for
spamming purposes.
• Creating conditions for or permitting the use of one's own electronic
devices for sending or forwarding spam.
• Exchanging, buying, selling or spreading software for gathering electronic
addresses or the right to use such software.
• Using software to gather electronic addresses without consent of owners
of such electronic addresses.
• Exchanging, buying and selling lists of electronic addresses or the right
use lists of electronic addresses for spamming purposes.
• Other acts of violation as provided for by law.
A. LEGAL FRAMEWORK

3. Anti-spam:
General principles:
• Advertising emails and advertising
messages may only be sent after obtaining
an obvious prior consent from the receiver.
• Subscription of advertising emails or
advertising messages must be immediately
terminated when receiving the refusal from
the receiver.
• Advertising emails and advertising
messages may only be sent from the
electronic addresses and system in
accordance with the provisions of MIC.
A. LEGAL FRAMEWORK

3. Anti-spam:
General principles (cont.):
• When sending advertising emails and advertising messages, the provider
of advertising services must send their copies to the technical system of
MIC
• It is prohibited to send more than 01 advertising email with the same
contents to an email address within 24 hours, unless otherwise agreed by
the receiver.
• It is prohibited to send more than 01 advertising message with the same
contents to a telephone number within 24 hours, and only allowed to send
such messages from 7:00 to 22:00 every day, unless otherwise agreed
by the receiver.
• The advertisement contents must conform with law provisions on
advertising
A. LEGAL FRAMEWORK

4. Decree 181/2013/ND-CP:
• Definition of cross-border advertisement:
Cross-border advertising activities on the websites of foreign
organizations or individuals that generate revenue from
advertisements accessed by users in Vietnam.
• Requirements:
 Engagement of a local advertising service provider in Vietnam
 Tax payment on all profits generated from advertisements in
Vietnam
 Notfication to MCST about the identity information of the local
agent
A. LEGAL FRAMEWORK

5. Data privacy:
The collection, use and disclosure of personal data of an individual are
prohibited except when requested by a Vietnamese competent State
body or when such individual consents.
• Collection: the collection of personal data requires the prior consent of
data subjects. Data collectors must inform the data subjects of the form,
scope, place and purpose of collecting, processing and using their
personal data
• Data use: prior consent is also required for the use of personal data. In
addition, such use must be in accordance with the purposes notified to
and consented to by the data subjects
• Disclosure: the disclosure of the personal data to third parties (whether
residing in Vietnam or foreign states) requires the prior consent of the
data subject, unless otherwise permitted by law
A. LEGAL FRAMEWORK

5. Data privacy:
‒ The use of personal image also requires the prior consent of such
person.
‒ It is prohibited to use personal image where the honour, dignity or
reputation of a person in the photo is infringed.
A. LEGAL FRAMEWORK
Be careful when using
personal images in
campaigns!

ARE YOU READY FOR THIS?

FAST FORWARD

B. FAST FORWARD
Draft Law on Information Security (by MIC):
• Obligations to monitor the security of information systems.
• A broad definition of “information conflict” (causing harm) and
requirements for the monitoring and prevention of the same.
• New controls on the production and distribution of civil cipher
products: Civil cipher products - products using cryptography
techniques for the purpose of ensuring the security and verifying
information which is not a State secret.
• A separate chapter on the protection of personal information:
restates and emphasizes the notification, consent and data
correction requirements relating to personal information that are
already provided for under Vietnamese privacy-related laws.

Draft Law on Information Security
Non-exhaustive list of information safety product classifications:
• Civil cipher products;
• Products for inspecting, assessment and evaluation of information safety;
• Products for monitoring information safety;
• Products for anti-offensive and anti-penetration;
• Other information safety products.
The trading or importation of information safety products requires an
“information safety product supplying permit,” or “importation business permit,”
respectively. The MIC is empowered to issue a list of “specialized information
safety products” the circulation of which will require a circulation certificate
issued by the MIC.
B. FAST FORWARD

Draft Decree on IT Services (by MIC):
Registration requirements:
• Web search portal services;
• Database, application store services;
• Data centre services;
• Distribution, leasing services of software
products, integrated products;
• Service of editing, function supplementing
and localizing software;
• Cloud computing services.
B. FAST FORWARD

Draft Decree on IT Services
Cross-border services:
Offshore service providers providing cross-border services
having a large amount of users in Vietnam or access
from Vietnam must:
 Designate a lawful agent in Vietnam on behalf of
the cross-border IT service provider to deal with
relevant issues before Vietnam's state bodies
 Provide the MIC with indentity information of the
lawful agent
B. FAST FORWARD

Draft Circular on the implementation and application
of information technology in the fields of examination
and treatment (digital healthcare and sensitive
information)
• Draft of April 2014
• Scope of coverage:
 Electronic Medical Record
 Electronic Health Record
 Telemedicine
 Picture archiving and communication system (PACS)
B. FAST FORWARD

ENGAGE! ENGAGE! ENGAGE!

CORPORATE
GOVERNANCE

C. CORPORATE GOVERNANCE
• Raise the level of awareness – regulated
sector (off-label marketing)
• Check and Balance – regulators, customers,
competitors (consumer protection, anti and
unfair competition) - disruption
• Vision for growth – M&A, strategic
investments (clarity on outcome and
procedures)
• Foreign involvement –advertising JV,
connectivity, distribution of drugs, public
company (clarity on limitations/requirements)

IS YOUR HOUSE IN ORDER?

CYBER SECURITY

D. CYBER SECURITY
Why cyber security matters?
• Vietnam has high risk of cyber attack: Vietnam ranks 12th on the
list of countries facing the maximum cyber attacks, according to
the Internet Security Threat report (ISTR19) released by the
Symantec Corporation in 2014.
• Confidence of customers: Security breach causes serious harm to
customer confidence.

D. CYBER SECURITY
Why cyber security matters?
• Stable foundation for e-commerce development: The vicious
cycle:
Low
confidence on
electronic
payment
Customers
prefer COD
over electronic
payment
Under-
developed
electronic
payment
system
E-commerce
companies pay less
attention to electronic
payment system

PROTECT YOUR
CROWN JEWELS!

THANK YOU
If you have any question, please contact:
YeeChung.Seck@bakermckenzie.com

This slideshow is from a presentation at the M2 Marketing & Media events
in Ho Chi Minh City, Vietnam organized by ITV-Asia.com and
VietnamBusiness.TV
To see videos from the events, interviews with speakers and
to get information on upcoming M2 - Marketing & Media Network events
Please visit VietnamBusiness.TV

IT, Media, Marketing - A regultatory lanscape

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