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SINGAPORE, Feb 24 (Reuters) - U.S streaming giant Netflix Inc (NFLX.O) is making preparations to open an office in Vietnam after years of negotiations with authorities and completing a risk assessment, two sources with knowledge of the matter said. Netflix declined to comment in response to Reuters questions about its plans and its current operations in Vietnam. The office could open as early as late 2023 but will require a lengthy regulatory process that could take longer, according to one of the sources. As Vietnamese officials grow more confident in the country's rising consumer power, however, they have begun ramping up pressure on tech firms to abide by the rules. With the fastest growing middle class in Southeast Asia, Vietnam has become a key market for tech giants.
"The government wants to fix what it sees as the 'news-lisation' of social media," said one source familiar with the talks. "News-lisation", or báo hoá, is a term used by the authorities to describe the misleading of users into thinking that social media accounts are authorised news outlets. Authorities would be able to order social media companies to ban accounts that break those rules, they said. YouTube has 60 million users in Vietnam and TikTok has 20 million, according to 2021 government estimates, although Twitter remains a relatively small player. Sources told Reuters in April that the new rules, which were originally planned for July, reflected the government's dissatisfaction with social media platforms' take-down rates.
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