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The era of ID: when every object has a digital identity.

electronic identification
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Legal picture

From identifying human beings to identifying entire ecosystems.

Vietnam has essentially completed the process of identifying individuals in the digital environment: chip-embedded identity cards, VNeID electronic identity accounts, and Project 06 have brought the legal identity of each citizen into cyberspace. But individuals are only one link in the chain. Goods can still be counterfeited, data can still be bought and sold freely, and electronic transactions are still difficult to prove in disputes — because those individuals do not yet have legally recognized “identities.”

According to the draft law, after more than three years of implementing Decree 59/2022/ND-CP and Decree 69/2024/ND-CPElectronic identification has formed the foundation for digital identification of citizens, but its scope is currently limited to within the country — while in practice, there has been a growing need for cross-border use of electronic identity and for "non-human" entities. Elevating the decree to the level of law, while expanding the scope of identification, is a step referenced from international experience.

This "IDization" orientation is concretized through two legal layers They complement each other:

Effective from January 1, 2025

Data Law (60/2024/QH15)

Approved by the National Assembly on November 30, 2024, the law establishes the infrastructure: National Data Center, National Comprehensive Database, data classification mechanism (core - important - other), and legal framework for data products, services, and data exchanges.

From this perspective, official data is seen as a development resource—capable of being managed, valued, and traded.

In progress · Legislative program 2026

Draft Law on Electronic Identification and Authentication

Published for public comment starting in July 2026, the draft proposes regulations on the subjects and models of electronic identification, electronic identity, electronic authentication, identification data, the national identification system/platform, and identification and authentication services.

For the first time, ID has been extended to goods, data, digital assets, transactions, and even geographic space.

In addition, the digital ecosystem is gradually taking shape: Law on Protection of Personal Data (91/2025/QH15) Effective from January 1, 2026, it sets standards for handling personal data with strict penalties, and Law on Industry and Technology 2025 (71/2025/QH15) This marks the first time the concept of digital assets has been recognized—a prerequisite for intangible entities to have a legal standing.

electronic identification
From identifying human beings to identifying entire ecosystems.
Article 7 · Draft Law on Electronic Identification and Authentication

Five target groups in the identification roadmap.

To shift from identifying individuals to identifying the entire digital socio-economic ecosystem, the Ministry of Public Security proposes assigning distinct electronic identities to five groups of subjects—each with a unique identity.

01

Agencies, organizations, and individuals

This group includes Vietnamese citizens, foreigners, state agencies, organizations, and businesses. It is the direct successor to the current VNeID platform, but with upgraded legal validity and expanded scope of use, including cross-border access.

For businesses – The electronic identity of legal entities is becoming the "key" in transactions with government agencies, banks, and partners — gradually replacing paper documents and cumbersome manual procedures.

02

physical object

Goods, products, equipment, and other physical assets. Each unit of goods may be assigned a unique identification code, linked to the identity of the owner or the legal manager.

For businesses – Products with "digital birth certificates" serve as a foundation for traceability, combating counterfeiting and origin fraud—and are a more powerful brand protection tool than any anti-counterfeiting label currently available.

03

Non-material objects

The broadest and most "pioneering" aspect of the draft—granting legal identity to things that are otherwise intangible:

  • Digital data and resources: databases, data files, images, videos, etc.
  • Applications, software, and digital services;
  • Digital assets, property rights, and intellectual property rights;
  • Intangible cultural heritage.

For businesses – Identifiable digital data and assets are prerequisites for legal recognition, valuation, and trading—paving the way for data to be included on balance sheets as an asset class, and even used as collateral in the future.

04

Events, transactions, behavior

Electronic transactions, legal events, or behaviors that require management and authentication in cyberspace. Each transaction may have a unique identifier, recording the time, subject, and content.

For businesses – Transactions with assigned IDs and verified through a national system are valid as evidence—reducing the risk of disputes over electronic contracts and documents, and increasing trust when working with new partners.

05

Location and space

Standardize and assign identification codes to geographical locations and planning spaces — ensuring synchronous connection with land, population, and property data within the same frame of reference.

For businesses – Having a unified ID for business addresses, factories, and projects helps to ensure transparency regarding the legal status and planning of real estate, reducing risks when renting, buying, investing, and mortgaging.

System design

How the ID system is designed to operate

The three principles in the draft determine how “ID” impacts daily business operations.

Unique & Non-Recollectible

Each individual has only one unique electronic identity, ensuring accuracy, completeness, and timely updating. The agency or organization performing the identification process is prohibited from re-collecting data already present in national or specialized databases – ending the practice of repeatedly submitting the same information.

Link to the owner

The electronic identity of goods, assets, digital data, and locations must be able to link to the electronic identity of the legal owner or manager (Clause 3, Article 9 of the draft Law). The chain of responsibility "object - task - person" thus becomes clear in the digital environment.

Substantive legal value

For individuals and organizations, electronic identity is equivalent to presenting paper documents in administrative procedures, public services, and transactions. For goods, digital data, or transactions, electronic identity also serves as proof of legal ownership and management rights (Article 16).

💡 Other notable proposals in the draft

  • Electronic authentication is divided into three levels of security; the authentication results can be used as evidence.
  • National identity verification applications can be linked to bank accounts and e-wallets — aiming for "one app, all transactions".
  • E-commerce platforms must connect with the National Electronic Identification and Authentication System — cracking down on fake and counterfeit seller accounts on the platform.
  • For the first time, there are specific regulations regarding artificial intelligence in identification and authentication: organizations providing the service must implement technical measures to prevent and combat fraud using deepfake technology (Article 45).
Socio-economic impact

A new credit infrastructure — and the trade-offs that come with it.

Placed side-by-side, these two legal layers outline a common framework. "credit infrastructure" For the digital economy: every entity, asset, and transaction can be verified almost instantly through a unified system, instead of through paper records and fragmented manual checks. The impact is twofold.

With state management

  • Shift from paper-based post-auditing to real-time data-driven management — from taxes and customs to market management.
  • Narrowing the informal economy; combating tax evasion, especially in e-commerce where both sellers and transactions are identified.
  • Combating counterfeiting and origin fraud at the source is crucial because each product bears a unique ID linked to the responsible entity.
  • Synchronizing land, population, and property data under a single spatial identifier code facilitates planning and reduces administrative procedures.

For businesses and markets

  • Partner verification costs have dropped dramatically: checking legal status, representative, and asset status is now almost instantaneous.
  • Data and digital assets are becoming quantifiable assets, traded on data exchanges—a new source of revenue and business value.
  • Genuine brands and products are protected; businesses that operate ethically enjoy a clear competitive advantage.
  • In return: initial compliance costs, requirements for internal data standardization, legal liability for misidentifying data — and legitimate questions about the security of centralized data warehouses and the protection of trade secrets need to be monitored through multiple rounds of draft revisions.

“When everyone has a digital identity, transparency is no longer an option. The competitive advantage will go to businesses with clean data — standardized before the law requires it.”

When goods, cash flows, and data streams are all ID-tipped, the room for informal, “flexible” practices narrows—from invoices and inventory to tax obligations. Conversely, businesses that do things right will be recognized correctly. In bidding, fundraising, or exporting, a consistent, verified record is a credibility asset that no marketing campaign can replace.

Timeline

Regulatory roadmap

  1. 30/11/2024 The National Assembly passed it. Data Law (60/2024/QH15) — The legal framework for digital data.
  2. 01/07/2025 The Data Law is in effect; the national data center framework and the national integrated database are operational.
  3. 01/01/2026 Law on Protection of Personal Data (91/2025/QH15) It is effective with strict penalties.
  4. 07 - 08/2026 The draft Law on Electronic Identification and Authentication (version 04/7/2026) has been published; comments will be accepted until 02/8/2026.
  5. 2026 - 2027expected Submit to the National Assembly according to the 2026 legislative program; issue guiding documents and implementation roadmap.
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ⓘ This article reflects the content of the draft and legal documents as of August 19, 2026; the regulations in the draft may change during the National Assembly's review and approval process. The content is for general informational purposes only and does not replace legal advice for specific cases. Please contact Expertis experts for advice tailored to your business situation.
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