Minister of Public Security Lương Tam Quang presented the draft law to the National Assembly on Monday during the second session of the 16th legislature.
The bill would establish a legal framework for creating, managing and using electronic identities in state management, electronic transactions, the digital economy and digital society.
It proposes extending identification to physical and non-physical entities, including vehicles, locations, goods, real estate, digital assets, databases, software, digital services, events and transactions.
The law would help combat cybercrime, anonymous SIM cards, fake accounts, online scams and sophisticated AI-enabled biometric impersonation.
Eight chapters and six policy areas
The draft contains eight chapters and 46 articles covering general provisions, electronic identification, authentication, the national identification and authentication system, service provision, international cooperation, rights and responsibilities, and implementation.
Its six policy areas cover the entities subject to electronic identification, identification models, the national system, authentication methods, requirements for service providers, and cross-border recognition of electronic identities.
The draft identifies five groups of entities: agencies, organisations and individuals; products, goods and physical assets; databases, digital files, images, audio, video, applications, software and digital services; events, transactions and acts; and locations and spaces.
It bans fake biometric data, artificially generated images and other technology used to create or falsify electronic identities. It also provides for recording, tracing and auditing identification and authentication activities, along with accountability requirements.
The proposed system would include the National Database on Electronic Identification and Authentication, an electronic identification and authentication platform, the national VNeID application, a system for managing the validity of electronic identities and certificates, and a national electronic identification and authentication portal. Related information systems would be connected to support state management, public services and socio-economic development.
The draft establishes centralised, intermediary and independent authentication models. Electronic identities would have to be linked and authenticated for digital-platform transactions in certain sectors. Organisations seeking to provide these services would have to meet requirements covering legal status, finance, technical systems, IT infrastructure, specialised personnel, operating procedures, user-data protection, cybersecurity, system connectivity and liability insurance.
Cross-border recognition and digital trade
The bill would provide a legal basis for mutual recognition of foreign electronic identities and authentication results in cross-border transactions. The Government says standardised data and identification frameworks would help Vietnamese businesses meet international market requirements, including the European Union's Digital Product Passport requirements.
The legislation is also intended to protect the provenance of domestic goods, address trade barriers and improve Vietnam's competitiveness in global supply chains. The draft was prepared in line with policies on digital government, the digital economy and human-rights protection in the digital environment. It also seeks to reduce transaction and compliance costs while allowing more flexibility for innovation.
Lawmakers raise privacy and feasibility concerns
The National Assembly's Committee on National Defence, Security and External Affairs agreed that the legislation was needed. It said the law would consolidate existing regulations, address implementation shortcomings and provide a foundation for trusted digital identification.
The committee identified issues requiring further consideration, including personal-data and privacy protection, the feasibility of identifying a wider range of entities, and the technical and financial resources needed to implement the system.
Some participants said the proposed scope was too broad and called for a clearer distinction between entities that must be identified and those for which identification would be encouraged. Concerns were also raised about information leaks involving state or business secrets and about identifying digital files, applications, events and acts.
Some opinions called for clearer rules on which data fields could be collected, limits on data collection and technical standards based on collecting only the minimum information necessary. Others recommended making identity linkage compulsory only for transactions where sector-specific legislation requires it, with the scope matched to the purpose and risk of each transaction.
The committee supported allowing qualified organisations to provide electronic identification and authentication services, but called for minimum technical standards and common data standards to ensure interoperability and avoid fragmented investment. It also recommended clarifying providers' legal responsibilities and compensation mechanisms in cases involving data leaks or inaccurate identification and authentication.
The committee concluded that the draft law's documents had been prepared in accordance with legal requirements and that the bill was eligible for consideration by the National Assembly at its second session.
Sources: Viet Nam News
