Elevating Vietnam’s Digital Identity By Leveraging The Power Of The National Population Database

From a Data Foundation to a Comprehensive Digital Identity Ecosystem

In the digital era, electronic identity verification, eKYC, has become the backbone of national digital infrastructure. Recognizing this, the Government of Vietnam has taken strategic steps, exemplified by Decision No. 749/QĐ-TTg on the National Digital Transformation Program and more recently Decree No. 69/2024/ND-CP on electronic identity and authentication. With the successful establishment of the National Population Database, CSDLQGDC, together with the rollout of chip-embedded citizen identity cards, CCCD, and the VNeID application, we have laid a firm foundation for a national digital identity system.

The Strategic Importance of Electronic Identity Verification eKYC

Electronic identity verification is a core element for establishing trust in the online space and for unlocking the full potential of digital transactions and interactions.

• For citizens, eKYC accelerates and secures a wide range of transactions, from opening bank and securities accounts, to notarization, medical consultations, and access to public services.

• For businesses, integrating electronic identity goes beyond customer identification. Key applications include access control and internal system authentication, Know Your Employee (KYE), and secure intercompany transaction validation, Know Your Business (KYB). These solutions streamline processes, reduce costs, and effectively prevent fraudulent activity.

• For the government, eKYC is a powerful instrument to advance administrative reform, build a digital government, and leverage data for evidence-based policy making.

The Role of the National Population Database and the FPT IS Solution Ecosystem

The National Population Database is a strategic national dataset that serves as the core digital infrastructure for government and the digital economy.

• It provides an authoritative, standardized, and legally recognized source of citizen data, enabling consistent identity information across the country.

• It functions as a central hub for data connectivity and sharing between ministries, local authorities, and businesses, reducing redundant procedures and lowering social cost.

• It enhances data accuracy and prevents identity fraud in banking, insurance, and e-commerce transactions.

• It enables end-to-end online public services where citizens can use VNeID or a chip-based citizen ID card in lieu of multiple documents.

• It provides the basis for policy analysis, economic planning, and the development of a transparent and secure data market.

To harness this potential, FPT IS provides a technology solution ecosystem capable of deep integration:

• FPT.eKYC: An electronic customer identification solution powered by AI, notable for facial recognition accuracy above 99% and data extraction accuracy of 98%. This technology enables full digitization of the process, accessible anytime and anywhere.

• FPT.IDCheck: A chip-based citizen identity verification solution that connects with the Ministry of Public Security C06 system to prevent identity document fraud with 100% accuracy.

• Digital Onboarding: A comprehensive platform that digitizes the entire registration flow to deliver a seamless customer experience, which is particularly important for the financial and banking sector.

• Core technologies: FPT.eKYC integrates advanced capabilities such as optical character recognition OCR, face matching, and anti spoofing AI to ensure authentication is both fast and secure.

Market Potential and Scale of the Electronic Identity Sector in Vietnam

The electronic identity market in Vietnam is entering a phase of rapid growth. Research data indicate a large untapped potential. According to Polaris analysis 2024, the total addressable market TAM for electronic identity in Vietnam is projected to expand significantly from 148.6 million USD in 2023 to 463.9 million USD by 2029.

Total addressable market (TAM) for electronic identity in Vietnam in 2022-2029

A closer look at the chart shows steady growth with average annual increases of around 50-60 million USD. Biometric solutions dominate the market, with biometrics such as fingerprint scanning and facial recognition accounting for the largest shares and fastest growth rates. In particular, face recognition, shown in orange on the chart, is expected to be the largest segment at 104 million USD by 2029. This confirms the trend and justifies investment in face matching technology. These figures indicate substantial room for development for solution providers such as FPT IS, not only in the financial sector but across multiple high potential industries.

Deployment Status: Achievements and Challenges

• Achievements: The issuance of chip based citizen identity cards and the VNeID application have achieved wide coverage. In the financial sector eKYC adoption has surged following State Bank Decision 2345, enabling banks to optimize costs and improve customer experience.

• Challenges: Despite successes, challenges remain, including VNeID activation rates, ecosystem interoperability, and concerns about personal data security and privacy.

Solutions and Strategic Directions to Elevate the eKYC Ecosystem

To capture a market worth hundreds of millions of dollars requires a coordinated strategy.

Strengthen the legal framework: Continue to clarify regulations on data sharing and personal data protection to create a safe and transparent legal environment.

Maximize user experience: User experience is decisive. Solutions such as FPT.eKYC with facial recognition accuracy above 98 percent are key to attracting and retaining users.

Promote service interoperability and expand into high potential sectors: Success in banking provides a springboard to additional markets. Strategic expansion targets include:

• Health: Patient identification, electronic medical record management, and online prescription services.

• Insurance: Digitization of claims processes and remote contract signing.

• Government: Delivery of online public services, electronic voting, and tax administration.

• Travel: Paperless check in at airports and hotels, and identity verification for vehicle rental.

• Commerce: Secure payment authentication and loyalty program implementation.

• Telecommunications and Education: New subscriber registration and identity verification for students during examinations.

Prioritize security and data protection: Building trust is fundamental. Investment in multi layer anti spoofing technologies and compliance with international standards will strengthen public and business confidence.

Vision for an Inclusive Digital Future

The combination of the Government’s National Population Database and FPT IS’s technology ecosystem forms a dual engine poised to unlock Vietnam’s electronic identity market estimated to exceed 460 million USD by 2029.

The future vision is that each citizen will have a single eID enabling secure and convenient access to all services. Realizing this vision requires partnership: government to finalize policy, technology providers such as FPT IS to deliver superior solutions, and broad societal adoption. This is the pathway for Vietnam to build a prosperous, secure, and sustainable digital future.

 

Exclusive article written by FPT IS expert Vũ Anh Đức – Deputy Director, Digital Identity Platform Center, Platform Services Division, FPT IS, FPT Corporation