HCMC – Cross-border over-the-top (OTT) media service providers, such as Netflix, WeTV and iQiYi, must establish a legal entity in Vietnam to offer services to Vietnamese users, heard a seminar in HCMC on February 27.
The seminar was held by the Ministry of Information and Communications to give updates on regulations on foreign businesses offering paid streaming services in Vietnam.
According to Nguyen Ha Yen, deputy head of the Authority of Broadcasting and Electronic Information under the Ministry of Information and Communications, since Decree 71 came into force on January 1 this year, foreign streaming TV services providers such as Nexflix, WeTV and iQiYi must get licenses to operate in Vietnam.
Specifically, they are required to set up a legal entity via a joint venture with a local partner with a ratio of capital contribution determined by the Prime Minister during the approval process.
Failing to do so, these providers will be banned from the Vietnamese market.
The above regulation aims to create equal opportunities for local and foreign businesses in supplying paid TV services in the country, Yen noted.
There are now five cross-border OTT service providers in Vietnam, including two service providers from the U.S. and three from China.