Issues Related to Competition Laws

Vietnam

D. Post and Telecommunications Ordinance

On May 25, 2002, the Standing Committee of the National Assembly approved the introduction of Ordinance 43 (the ¡§Post and Telecommunications Ordinance¡¨) to replace the outdated Decree No.109. This milestone Ordinance provides a more transparent regulatory regime for private and public networks, dealing with issues such as interconnection , fees, charges and licensing, and introducing a Universal Service Fund

Key policy priorities are stated as follows:

• Develop and improve the legal framework to move from a monopoly to a competitive environment
• Develop and issue a market liberalization roadmap for particular services with certain timing in order to create conditions for enterprises to enter the market
• Market expansion through encouraging licensed operators to enter the market to stimulate competition
• Develop tariff regulations toward a cost-based approach and ensure universality
• Develop an open resale market
• Capital mobilization initiatives include identifying domestic sources, reserve funds of operators; from staff of enterprises; from different governmental levels; and from different citizens. International sources of capital could be through ODA, BCC, JV, BOT, issuing of international bonds; lending from banks, financial institutions and foreign companies
• Encourage equitization in the state-owned telecommunication enterprises, except the national backbone network
• Develop policies and regulations related to interconnection, USO, and investment in remote and rural areas
• Develop and issue a transparent licensing policy with simple procedures to create favorable conditions for new entrants
• Issue licenses to other operators in different service areas: ISP, IAP, long distance and international