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What challenges has Vietnam encountered in digital ID adoption?
Executive summary
Vietnam’s digital ID push — centered on the VNeID platform and Project 06 — has accelerated rapidly, but adoption has been slowed by technical, operational and inclusion challenges: notable system crashes during benefit roll-outs, fragmented data and agency systems, requirements that exclude some foreign representatives and practical hurdles in bank biometric updates that affected tens of millions of accounts (examples and quantities vary across reports) [1] [2] [3]. Coverage stresses both government confidence in fixing infrastructure and criticism from privacy and inclusion advocates about biometric mandates and implementation gaps [4] [5] [3].
1. Scalability and reliability: stress tests exposed weak points
Vietnam’s VNeID platform has experienced at least one high‑profile crash when citizens rushed to claim a government cash benefit, demonstrating that peak demand can overwhelm current infrastructure; officials are publicly working to strengthen scalability and resilience to avoid repeats [1] [2]. Multiple outlets flag this crash as a concrete example of how an accelerated rollout can collide with real‑world load and user expectations [2].
2. Fragmented systems and limited data sharing slow seamless use
Government statements and industry analysis identify “fragmented data systems” and limited inter‑agency sharing as persistent “bottlenecks” to achieving a true single digital identity experience; integration across population databases, service portals and payment systems remains a technical and bureaucratic task [1] [2] [4]. The ambition to cover 100% of adults by 2026 heightens pressure to resolve these integration gaps quickly [1].
3. Bank and biometric enforcement created mass operational disruption
Regulatory moves to require biometric verification for bank accounts and high‑risk transactions triggered a large data‑cleansing effort with major operational consequences. Reporting cites orders that unverified accounts would face transaction restrictions and notes the State Bank of Vietnam’s campaign that reportedly affected tens of millions of accounts as part of Project 06—raising practical problems for users and banks alike [3] [6]. Industry observers point to low success rates reading chip‑based ID cards via NFC as a specific technical hurdle for in‑field verification [6].
4. Corporate e‑ID rules created uncertainty for foreign‑led companies
New rules require companies to obtain corporate e‑IDs and for the legal representative to hold a Level‑2 personal e‑ID, which poses difficulties for businesses where the legal representative is a foreign national; guidance on procedures and accommodations has been incomplete, creating compliance anxiety ahead of deadlines [7] [8]. Commentators and legal alerts warn that unresolved questions—like acceptance of paper processes and onboarding of foreign reps—could disrupt business operations [7].
5. Practical barriers for foreigners and people without verified SIMs
Campaigns to issue Level‑2 e‑IDs to foreign residents reported early uptake but also implementation problems: applicants lacking a registered Vietnamese mobile number or using unverified SIMs encountered obstacles, showing how other regulatory regimes (SIM registration) can interact badly with digital‑ID onboarding [9]. The government ran intensive short‑term drives to issue accounts, underscoring the operational challenge of scaling inclusive access [9].
6. Digital literacy and inclusion remain unresolved
Multiple reports and the VNeID overview note a skills gap: limited digital literacy and uneven adoption across regions and demographics risk leaving parts of the population behind even as services move online [10] [5]. The government has signaled digital literacy campaigns and user‑centric design as remedies, but sources emphasize these as ongoing rather than solved problems [1] [5].
7. Security, privacy and rights debates are present but muted by state tempo
Analysts contrast Vietnam’s state‑driven speed with longer privacy debates seen elsewhere, flagging risks around cybercrime, biometric data protection, and citizen digital rights; some advocates label mandatory biometric collection as overreaching, while authorities frame the measures as anti‑fraud and modernization steps [4] [5] [3]. Available sources document these tensions but do not offer a definitive resolution: coverage records both government reassurances about cybersecurity upgrades and critics’ concerns about surveillance and inclusion [1] [5] [3].
8. Where fixes are being prioritized — and what remains uncertain
Authorities are prioritizing infrastructure hardening, cybersecurity upgrades, inter‑agency integration and digital literacy drives to meet ambitious 2026 targets [1] [2] [4]. Yet sources show unresolved practical questions—how to onboard foreigners smoothly, how to read chip IDs reliably, and how to keep millions of bank accounts operational during transitions—leaving significant implementation risk in the short term [6] [7] [3].
Limitations: reporting in these sources is largely descriptive of program goals, stress‑events and implementation problems; available sources do not provide a single consolidated accounting of affected user numbers for every issue, and independent audits or government follow‑up studies are not cited in the material provided [1] [3] [9].