Finance Vietnam's Digital Leap: Online Governance and Biometric Banking

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Photo courtesy of Biometric Update

 

Vietnam is accelerating its digital transformation with nearly 40% of administrative procedures completed online by June, marking a significant stride in the country’s bid for enhanced digital governance. This was a key focus at the third meeting of the Government Steering Committee for Science and Technology Development, Innovation, and Digital Transformation, chaired by Prime Minister Pham Minh Chinh.

 

Data-driven management has been embraced by 73 out of 84 government bodies. Furthermore, a third of Vietnamese adults now hold digital signatures, up by 11% since December 2024, according to Voice of Vietnam. These advancements signify the country’s commitment to digital integration in both public and private sectors.

 

A newly launched national portal for science and technology has cataloged over 250 innovative solutions and introduced a framework for local innovation evaluation. Additionally, broadband coverage has reached an impressive 99.3% of villages and hamlets. Vietnam now ranks 20th globally in mobile broadband speed and 26th in fixed broadband.

 

The government is investing heavily in this digital future, allocating VND25 trillion (approximately 954 million Thai Baht) towards science, technology, innovation, and digital transformation initiatives.

 

A noteworthy project highlighted at the meeting, Project 06, aims to develop resident data systems, electronic identification (e-ID), and e-authentication. A targeted 50-day campaign starting July 1 is rolling out digital IDs for approximately 100,000 foreigners with temporary or permanent residence in Vietnam.

 

In the banking sector, Vietnam is tackling fraud with rigorous biometric verification mandates. The State Bank of Vietnam requires full verification of business transactions using biometric data of legal representatives. Nguyen Quoc Hung of the Vietnam Banks Association noted the need for an industry-wide fraud data-sharing system to enhance security and maintain public confidence amidst rising scam activities.

 

Vietnam’s biometric push has led to a drastic cleanup of bank accounts. Of approximately 200 million registered accounts, only 113 million individual accounts and 711,000 corporate accounts remain active following biometric verification against the national database. This suggests nearly 86 million accounts were likely fraudulent. Banks are set to delete any unauthenticated accounts by September 1.

 

The finance sector is increasingly turning to biometric solutions such as face and voice recognition to safeguard transactions. This strategic boost aligns with calls from the VNBA for updated legal regulations to keep pace with technological advancements, aiding compliance through emerging technologies such as AI and blockchain.

 

Vietnam’s ambition to convert itself into a digital-first nation is well underway, fostering a secure, transparent, and efficient landscape for both citizens and residents alike. As these efforts unfold, they not only enhance governance but also set the stage for Vietnam to emerge as a regional leader in digital growth.

 

  Adapted by ASEAN Now from Biometric Update 2025-07-22