Deployment organization identification theo Decree 69/2024/ND-CP, with registration required electronic identity account before day 01/07/2025This is a significant step in Vietnam's digital transformation strategy. For businesses, this regulation not only ensures compliance with the law but also opens up opportunities for restructuring governance, enhancing reputation, and strengthening competitive position.
This article analyzes the impact of organizational identification on comply with the law , and market competition, while also providing a strategic vision so that business owners can clearly see: Businesses lacking transparency will struggle, while those that invest properly will thrive.
Impact on Compliance: Transparency and Professionalization of Governance
Organizational identification is done through an electronic identification account on the application. VNeIDThis is a tool that helps the state strengthen supervision and ensure transparency in business operations. This encourages businesses to transition to a more professional governance model.
- Ensuring transparency in all operations.:
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- An electronic identity account is linked to unique information within National database of business registration, verified by PoliceAdministrative transactions, such as filing taxes, labor reporting, or business registration, are all conducted online. National Public Service Portal (dichvucong.gov.vn), ensuring accuracy and traceability.
- Previously, businesses may have had difficulty synchronizing information with government agencies. With organizational identifier accountAll data is automatically checked and verified, minimizing errors and improving management efficiency.
- Promoting professional governance:
- Businesses that do not maintain accurate legal information or lack valid documentation will find it difficult to meet the verification requirements of the VNeID system, leading to the risk of being restricted from operating in the market. This can seriously affect business operations.
- To comply, businesses need to ensure that their legal information (name, tax identification number, business activities) is continuously updated and synchronized with government agencies. This requires investment in internal management systems, professional accounting, and standardized operating procedures.
Competitive impact: Eliminates businesses lacking transparency, creating an advantage for businesses that invest systematically.
Organizational identification creates a fair competitive environment where businesses that operate transparently and invest wisely will gain an advantage, while those lacking effective governance will gradually lose ground.
- Businesses lacking transparency face significant challenges.:
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Businesses that do not maintain complete legal records or fail to meet the verification requirements of the VNeID system will face difficulties participating in important business activities, such as bidding, signing large contracts, or accessing loans.
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For exampleIn the construction industry, some businesses may have previously used inaccurate information to participate in bidding processes. With organizational identification, stricter identity verification requirements will cause these businesses to lose their competitive opportunities.
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- Businesses that invest systematically are thriving.:
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Enhance reputation: Businesses that comply with organizational identification requirements will have a “digital identity” verified by PoliceThis builds trust with customers, partners, and financial institutions.
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Save money and time: Using electronic identity accounts to conduct online administrative procedures helps reduce travel costs, paperwork, and waiting time. According to the General Department of Taxation, businesses that adopt electronic invoices and pay taxes online save up to [amount]. 70% of the time compared to traditional methods.
- Competitive advantage: Businesses that invest in governance, technology, and legal compliance will find it easier to integrate with digital platforms, such as e-commerce, online bidding, or digital financial systems, thereby expanding their market and outperforming competitors who are slow to adapt.
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Promoting fair competition:
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Organizational identification creates a transparent market where businesses compete based on product and service quality and reputation. Small and medium-sized enterprises (SMEs), if operated efficiently, will have a level playing field with larger companies thanks to a unified authentication standard.
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Real impact: A fair competitive environment helps businesses focus on innovation and quality improvement, rather than relying on opaque methods.
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Organizational identification is a tool that promotes transparency and professionalization. Compliance not only helps businesses avoid legal risks but also builds a solid foundation for long-term growth.
Strategic Vision: Action for Sustainable Development
To turn organizational identification into leverage for growth, business owners need to implement specific strategies, utilizing this regulation to enhance competitiveness and scale up.
- Complete compliance to build a solid foundation.: Verify and update business information, register a level 2 VNeID account for the legal representative, and complete the electronic identity verification process beforehand. 30/06/2025.
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Enhancing internal governance capabilities: Invest in a professional accounting system, regularly update legal records, and apply digital management tools to synchronize data with the state system.
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Accelerating digital transformation: Integrate VNeID accounts into internal processes, implement electronic invoicing, digital signatures, and modern management software. Participate in digital transformation training programs provided by... Ministry of Industry and Trade, Department of Planning and investment or business associations that organize them.
Summary
Organizational identification by Decree 69/2024/ND-CP This presents a strategic opportunity for businesses to enhance transparency, professionalize governance, and strengthen their competitive position. For business owners, this is the time to:
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Ensuring compliance: Avoid legal risks and build reputation.
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Leverage competitive advantages.: Overcoming competitors lacking transparency through effective governance.
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Sustainable Development: Investing in digital transformation is key to expanding markets and reaching further internationally.
Take action today: Complete the registration for an electronic identity account, and collaborate with professional consulting firms such as Expertiseand build a digital transformation strategy. A business that operates transparently and systematically will not only survive but also lead in the digital age.