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Vietnam is making significant strides in digital transformation with the implementation of “Project 06,” a comprehensive initiative to modernize the nation’s economy and public services. Central to this plan is the introduction of a new national identity system that aims to replace outdated paper-based methods with advanced biometric digital IDs. This transformation promises enhanced data access and protection from cyber threats, integrating various public services like healthcare and social insurance for increased efficiency and accessibility.
Key Developments in Vietnam’s Digital Identity System
The shift from manual identification processes to digital systems marks a milestone in Vietnam’s digital evolution. Traditionally reliant on slow and often insecure methods, the Vietnamese government is now advancing towards a centralized, biometric-based national identity system. This initiative is supported by international technology partnerships, notably with NEC and Vietnam Post and Telecommunications Group (VNPT).
NEC has played a pivotal role in this transition by deploying its Automated Biometric Identification System (ABIS). This system, which incorporates fingerprint and facial recognition technologies, enhances security and identity verification for over 50 million citizens. NEC’s scalable biometric solution also facilitated the migration of 16 million legacy records, highlighting its critical role in modernizing Vietnam’s national ID infrastructure.
International Collaborations and Technological Partnerships
Vietnam’s progress is further bolstered by collaborations with international firms. VNPT’s electronic Know Your Customer (eKYC) platform has revolutionized identity verification, achieving over one billion authentication requests—a record in Vietnam. Thales has also joined the effort, signing a Memorandum of Understanding (MoU) to advance digital identity and biometrics, contributing to a more sophisticated and secure system.
Additionally, TENTEN, in partnership with the Vietnam Internet Network Information Centre (VNNIC), launched an initiative encouraging youth to adopt the “.id.vn” domain for digital identity and branding. This program offers free registration and includes web hosting, CV templates, and personalized email addresses for young Vietnamese citizens.
Digital IDs and Enhanced Service Access
In July, Vietnam introduced digital identity cards integrated with the VNeID mobile app. These digital IDs are set to streamline interactions with public services. The VNeID app, available in two levels, requires biometric verification including facial photos and fingerprints. Level 1 accounts can be created via the app, while Level 2 requires in-person verification at designated government offices.
The digital ID system will also unify various documents such as health cards, social insurance, driving licenses, and birth certificates, improving convenience and security. The system allows users to disable their IDs if necessary and enables the government to terminate accounts in cases of policy violations.
Advancing Digital Payments
Vietnam is experiencing a rapid transformation in digital payments, driven by new regulations and technological innovations. Since July, facial recognition has become mandatory for online transactions exceeding VND10 million (US$393), promoting the adoption of biometrics. Banks like Techcombank and Vietcombank, alongside fintech companies like Cake by VPBank, are integrating advanced biometric solutions. Other trends include QR code payments and “buy now, pay later” (BNPL) services, signaling a shift towards cashless transactions. The National Committee for Digital Transformation’s 2024 plan aims to further develop digital technologies, enhance online public services, and improve socio-economic efficiency.
Privacy Concerns and Future Challenges
As Vietnam advances its digital transformation through Project 06, it faces privacy concerns related to the collection of extensive biometric data, including facial recognition, fingerprints, iris scans, voice recordings, and DNA. Critics worry about potential government surveillance and data privacy issues. Balancing technological innovation with privacy protection will be crucial as Vietnam navigates its path toward a digitally transformed public infrastructure.
Vietnam’s digital identity system represents a significant leap forward in modernizing public services and security. While international partnerships and technological advancements drive progress, addressing privacy and data protection challenges will be essential for the success of this transformation.
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