Global IT platforms such as Google and Facebook should be required to establish legal entities in Viet Nam in charge of conforming to the country’s laws, a representative of VTC Mobile has proposed.

Nguyen Ngoc Bao, director of VTC Mobile, a Vietnamese mobile game publishing company, was quoted by ictnews.vn as saying this would help ensure fair competition between local and foreign companies.

Bao said that borderless service platforms such as Facebook, YouTube, Google and Netflix are providing content services for Vietnamese users, such as online advertising, games and films, with users making payments via credit cards or intermediary payment apps.

This makes it difficult to manage borderless service platforms without legal entities in Viet Nam.

Under Decree 72/2013/ND-CP, about the management, provision, use of internet services and information content online, both domestic and foreign firms are required to follow the country’s regulations.

Bao said that it was essential to require global IT firms to establish legal entities in Viet Nam to better manage their operations in Viet Nam amidst rapid technology development which enables borderless services provision. Payments should also be integrated into Vietnamese payment channels, he said.

From the beginning of this year, Google and Apple stopped accepting payments through local channels, such as mobile cards, for purchasing digital content on the Google Play Store and Apple Store.

Instead, only payments through their own payment gateways were accepted and providers would receive payment only when customers’ transactions were completed and the payment had been processed.

According to Luu Vu Hai, chairman of VTC, the payment policies of Google and Apple create difficulties for local digital content companies, including game publishing companies.

Previously, Hai proposed the Ministry of Information and Communications raise policies to tackle this problem early to ensure healthy competition. — VNS