Vietnam simplifies procedures for enterprises in online gaming sector
26 January 2022
On 26 November 2021, the Prime Minister of Vietnam adopted Decision No. 1994/QD-TTg (“Decision 1994”), which came into immediate effect. Decision 1994 simplifies some administrative procedures relating to business activities under the scope of the Ministry of Information and Communications, among others, including in relation to the operation of online games and public electronic games.
This article sets out the key points of Decision 1994.
Overview
With a view to helping businesses save time, costs and human resources, strengthen the efficiency of State management and focus on content management for each released online game, Decision 1994 abolishes a number of administrative procedures in relation to the online gaming business including procedures relating to obtaining and extending licenses for the provisions of gaming services, notification of change of corporate structure and domain name, among others.
Under Vietnam law, online games are classified into the following categories, based on the method with which the service is provided and utilised:
- Online games with simultaneous interactions among various players via the game server system (“G1”);
- Online games with interactions only between players and the game server system (“G2”);
- Online games with interactions among various players but no interaction between the players and the game server system (“G3”); and
- Online games which are downloaded via the network with no interaction among players or between the players and the game server system (“G4”).
Under prevailing regulations, businesses operating online games in Vietnam must satisfy certain conditions such as having a Vietnamese game-online licensed partner, obtaining a statutory license to provide online games, and having notified the relevant Vietnam authority before launching an online game.
Removal of administrative procedures
Decision 1994 abolishes certain administrative procedures in relation to all the above types of games, as set out in the table below.
|
No |
Administrative procedure removed |
Category of online games affected |
|
1 |
Obtaining, amending, re-issuing, extension of licenses for providing such services |
G1, G2, G3, G4 |
|
2 |
Notification of change of head office address, transaction office, server location or rental address of enterprises providing such services |
G1 |
|
3 |
Notification of change of method or scope of providing such services |
G1 |
|
4 |
Notification of change of corporate structure of enterprises providing such services due to separation, division, merger or enterprise conversion and/or change of capital contribution leading to change of capital contribution members (or shareholders) holding 30% or more of the charter capital |
G1, G2, G3, G4 |
|
5 |
Notification of change of domain name in relation to provision of gaming services on the internet or game distribution channels |
G2, G3, G4 |
|
6 |
Notification of change of head office address of enterprises providing services |
G2, G3, G4 |
Decision 1994 also removes certain conditions in relation to the operation of online gaming business, among others, including requiring that enterprises in the online gaming sector (i) must have a registered domain name for the provision of these services or (ii) be established in accordance with Vietnam law as a business providing online games as set out in the National Business Registration Portal.
Decree 27/2018/ND-CP amending and supplementing some articles of Decree 72/2013/ND-CP dated 1 March 2018.
As a result of the provisions of Decision 1994, the following legislation in relation to the online gaming business will also be consequentially amended:
- Decree 72/2013/ND-CP on the management, provision and use of internet services and online information dated 15 July 2013; and
- Decree 27/2018/ND-CP amending and supplementing some articles of Decree 72/2013/ND-CP dated 1 March 2018.