Under the draft decree on Internet and information content service management, foreign institutions which provide public information services across the border, attracting many users in Vietnamese territory, have to set up representative offices in Vietnam.

Once the draft decree gets approval and takes effects, the “big guys” in the field of digital content, such as Google and Facebook, would be officially present in Vietnam.

Representative offices not only help collect tax

The fact that Google and Facebook can make big money in Vietnam but do not pay tax has become a hot topic in discussions. Competent agencies have been many times urged to set stricter control over the big guys and force them to pay tax on the earnings in Vietnam.

However, experts have pointed out that if the draft regulation is applied, Vietnam would get many more benefits from the presence of the big guys rather than the tax collection.

Vo Do Thang, Director of Athena, a center for network management and security training, said that the presence of Google and Facebook in Vietnam would help popularize Vietnam’s image in the world’s information technology market.

“Their presence would also help attract their partners to Vietnam, thus creating more opportunities to Vietnamese software outsourcing companies,” Thang said.

Also according to Thang, some big guys not only simply provide digital content services, but also have jumped into other business fields. Google, for example, also manufactures tablets and smart phones, i.e. it has jumped into the hardware sector. As such, this may lead to a new wave of investment and new technology import to Vietnam, the thing that happened in Intel’s case.

Under the current regulations, with representative offices in Vietnam, the big guys would not be allowed to do business, while they can only act as consultants and technical supporters. Some manufacturers would try to orient the market through training and investments. If so, according to Thang, the domestic infrastructure and labor force would benefit from the programs.

“Besides, when entering Vietnam, foreign groups would bring with themselves professional management procedures, which are very useful for the sectors with hot development, including digital content,” Thang said.

Vu Thai Ha, Director of EXA, the company specializing in providing online backup services, said cloud computing remains an unfamiliar concept for domestic computer users, therefore, if Google sets up representative offices in Vietnam, this would be a good signal, showing that Vietnam is market with great potentials.

Ngo Dac Thuan, Managing Director of Hat Giong So, a mobile app service provider, said the presence of Google in Vietnam would support the developers of Android-based mobile apps 

The cooperation and competition

It’s clear that if Google or Facebook set up representative offices in Vietnam would bring benefits to partners and the domestic users, but would be the hindrances to the enterprises in the same sectors. The foreign giants would become even stronger, once they have technical support staff right in Vietnam.

However, domestic firms keep optimistic about the presence of the world’s giants in Vietnam. Andy Dang, Creative Director of Phan Viet Media Company, said that he can see the opportunities for cooperation for mutual development.

Meanwhile, Phan Anh Tuan, Director of go.vn network, said in the digital world, there is no geographical distance. Therefore, the competition has always existed, even if Google or Facebook do not set up representative offices in Vietnam. Tuan stressed that Vietnamese businesses always have to struggle with the two big guys and other rivals to survive already.

Source: TBKTSG