Why is digital identity frequently mentioned in the digital transformation of public services, banking, and finance? In reality, digital identity is regarded as the foundation for all digital transactions in the digital economy.

Digital Identity: The Foundation for a Digital Economy

According to Decree 59/2022, digital identity refers to the registration, verification, creation, and attachment of an electronic identity to an individual. Each citizen will have a unique digital identity record maintained in the digital environment. Digital identity establishes a reliable foundation for online transactions and the development of the digital economy. The World Bank has described digital identity as a “game-changer” that saves time and reduces fraud.

In Vietnam, digital identity has become a critical pillar for implementing the Government’s Project 06 on the application of population data, digital identity, and electronic authentication to support national digital transformation. By 2030, the goal is for every citizen to have a digital identity to swiftly, transparently, and securely register for public services, healthcare, education, banking, insurance, and more.

Vietnam’s Roadmap for Digital Identity Development

Phase 2022–2025: Completing the Digital Identity Infrastructure

• Universalize chip-based ID cards and VNeID applications for citizens.

• Integrate and synchronize population, civil status, insurance, and healthcare data.

• Establish a legal framework through decrees and circulars on digital identity and personal data protection.

• Pilot digital authentication platforms within public services and key sectors such as banking, finance, and telecommunications.

Phase 2025–2030: Comprehensive Digital Identity Development

• Digital identity becomes the key that enabling all digital transactions for citizens.

• Incorporate biometric authentication (facial recognition, fingerprints) to enhance security.

• Develop open identity platforms that connect public and private services.

• Expand level 3 and 4 online public services, gradually reducing reliance on traditional paperwork.

• Strive for 80–90% of adults to have digital signatures and digital identity accounts.

Challenges in Implementation

1. Technology Infrastructure:

Developing a digital identity platform requires large-scale server systems and databases, with high bandwidth and secure processing of biometric data (images, fingerprints) and integration with existing databases. A lack of data connectivity and sharing across ministries and sectors hinders synchronization.

2. Security and Privacy:

Digital identity systems are attractive targets for cyberattacks, while identity fraud methods such as deepfake and forged chip-based ID cards are becoming increasingly sophisticated. Therefore, advanced biometric anti-spoofing (liveness detection) and robust personal data protection mechanisms are essential to maintain public trust and government credibility.

3. Data Synchronization Across Sectors:

Effective digital identity requires consistent data synchronization across ministries and localities. Lack of connectivity leads to discrepancies and disrupts service delivery. Data retrieval and interconnection across population, civil status, tax, insurance, and healthcare databases must be seamless. Decree 59/2022 allows state agencies to access the national digital identity system for public administrative services, but practical implementation requires standardized procedures, infrastructure, and clear interconnectivity.

4. User Awareness:

Many citizens and businesses do not fully understand the benefits or how to use digital identity, leading to reluctance in transitioning from traditional paperwork to digital methods.

5. Implementation Costs:

Investing in technological infrastructure, integrating digital authentication systems, and upgrading software require substantial financial resources, especially for small and medium-sized organizations.

6. Legal Framework:

Despite Decree 59/2022, the overarching legal framework remains incomplete. The Digital Data Law 60/2024/QH15, effective from July 1, 2025, provides regulations on personal data protection, information access control, and accountability for violations, clarifying the balance between data use for administrative procedures and personal privacy rights.

Digital Authentication: The Guardian of Digital Identity

Digital authentication verifies and confirms the information linked to an individual’s digital identity by cross-referencing national population, ID, and immigration databases. In essence, after identity creation, every transaction requires authentication to confirm legitimacy.

Common Digital Authentication Methods:

• OTP (One-Time Password) via SMS or email.

• Biometric authentication using facial recognition, fingerprints, or iris scans.

• Digital signatures for financial transactions and online contract signing.

• Authentication via chip-based ID cards, linked to the population database for data verification.

Digital authentication is a critical step in fraud prevention, enabling public, banking, and financial services to reduce fraud, prevent identity impersonation, and accelerate transaction processing. For instance, citizens can use VNeID to log in and authenticate for public administrative services without in-person visits.

The Role of Technology Enterprises

Open Identity Ecosystem:

In addition to government infrastructure (data agencies, VNeID), technology enterprises (FPT, VNPT, Viettel, AI companies) are developing authentication and identity solutions, creating a rich ecosystem. Numerous solutions now provide eKYC, eID, and digital signature technologies for banking, healthcare, and education, making digital identity more accessible.

Technological Innovation:

ICT enterprises are deploying advanced technologies such as AI, deep learning, blockchain, and cloud computing for digital identity. For example, AI enables fast and accurate facial recognition, while blockchain securely stores identity data. The involvement of enterprises increases competition, driving higher solution quality.

Government-Private Collaboration:

The government provides databases and regulatory frameworks, while enterprises develop sector-specific applications. FPT eID, VNPT-ID, and Viettel-CA are examples of strategic digital identity partners, facilitating consistent implementation across central and local agencies, public entities, and businesses.

The Role of FPT eID in Digital Identity Development

In digital transformation, technology enterprises play a crucial role in providing reliable, integrable digital identity and authentication platforms.

FPT eID is one of Vietnam’s pioneering solutions, offering a comprehensive digital identity ecosystem, including:

• eKYC: Enables rapid user identity verification through chip-based CCCD combined with highly accurate facial recognition.

• FPT.IDCheck: Supports document authenticity verification, preventing forgery and protecting businesses from legal risks.

• Face Matching and Liveness Detection: Combines facial recognition with liveness detection to combat fraud using photos, videos, or masks.

• Easy Integration: Operating as a cloud-native API, FPT eID easily connects with online public service portals, banking, insurance, finance, and enterprise platforms.

FPT eID not only ensures technological reliability but also complies fully with Vietnamese regulations, including Circular 50/2024/TT-NHNN and Decree 59/2022/ND-CP, ensuring safety, security, and legal validity for digital identity transactions.

Conclusion

Digital identity development is a cornerstone of Vietnam’s national digital transformation strategy. The roadmap to 2030 reflects the government’s commitment to building a digital identity foundation to modernize public services, promote the digital economy, and enhance citizen convenience.

The choice of advanced technology solutions will determine the pace and effectiveness of this journey. With strong core technologies (AI, biometrics), international standards compliance, and extensive deployment experience, FPT eID enables organizations to align with market trends, optimize operations, and enhance user experiences throughout comprehensive digital transformation. Partnering with FPT eID shortens the time to realize digital identity benefits, increases reliability and security for electronic transactions, and contributes to achieving the 2030 objectives.