Vietnam Boosts Digital Change: Biometrics Enhances Bank Security

Published Date : 7/21/2025 

Vietnam is making significant strides in digital governance and biometric security, with nearly 40% of administrative procedures now completed online and a major reduction in fraudulent bank accounts through biometric verification. 

Digital governance in Vietnam is gaining momentum, with nearly 40 percent of administrative procedures completed fully online in June. Data-based management practices have been adopted by 73 out of 84 government entities, and it’s estimated a third of adults possess personal digital or electronic signatures, an 11-point increase since December 2024, according to Voice of Vietnam.

These advancements were reported from the third meeting of Vietnam’s Government Steering Committee for Science and Technology Development, Innovation, and Digital Transformation led by Prime Minister Pham Minh Chinh. A national portal for science and technology now features over 250 proposed solutions, and a new framework for evaluating local innovation was introduced. Mobile broadband now reaches 99.3 percent of villages and hamlets, with Vietnam ranked 20th globally in broadband access speed and 26th in fixed broadband.

The government has allocated VND25 trillion ($954m) toward science, technology, innovation, and digital transformation initiatives. The meeting also covered Project 06, which focuses on resident data systems, electronic identification (e-ID), and e-authentication applications. Digital ID rollout continues with the Vietnamese government targeting foreigners residing in the country with a 50-day campaign from July 1 to August 19. Foreigners who hold temporary or permanent residence cards in Vietnam are eligible for level-2 digital IDs, with their number now estimated to be around 100,000.

Biometrics is also playing a crucial role in enhancing banking security. The State Bank of Vietnam has mandated full verification of businesses and biometric data of legal representatives before firms can make electronic transactions or withdrawals since July 1. In an interview with Vietnam Investment Review, Nguyen Quoc Hung, vice chairman and general secretary of the Vietnam Banks Association (VNBA), emphasized the need for an industry-wide fraud data-sharing system to improve the detection of suspicious transactions and protect public trust.

Hung pointed out that the surge in fraud and scams places pressure on banks to make significant investments in new technology and verification processes. Vietnam has around 200 million registered bank accounts, according to official statistics. Following the implementation of biometric verification and cross-checking with the national population database, however, just 113 million individual accounts and approximately 711,000 corporate accounts remained active. This means almost 86 million accounts are now inoperable, suggesting that many were created for fraudulent purposes. These bank accounts that remain biometrically unauthenticated will be deleted by commercial banks beginning September 1.

Vietnamese banks are increasingly leveraging biometric authentication and AI-powered systems to combat fraudulent transactions. Face biometrics, fingerprints, and voice biometrics are being adopted to verify user identities during financial transactions to prevent unauthorized account access. The VNBA has recommended that legal regulations are reformed to align with technological advancement and operational realities and invites detailed guidance on the application of new technologies such as AI, blockchain, and fintech solutions to assist compliance among banks. 

Frequently Asked Questions (FAQS): 

Q: What percentage of administrative procedures in Vietnam can now be completed online?

A: Nearly 40 percent of administrative procedures in Vietnam can now be completed fully online.

Q: How many government entities in Vietnam have adopted data-based management practices?

A: 73 out of 84 government entities in Vietnam have adopted data-based management practices.

Q: What is the estimated number of adults in Vietnam with personal digital or electronic signatures?

A: An estimated one-third of adults in Vietnam possess personal digital or electronic signatures, which is an 11-point increase since December 2024.

Q: What is the main focus of Project 06 in Vietnam?

A: Project 06 focuses on resident data systems, electronic identification (e-ID), and e-authentication applications.

Q: How many bank accounts in Vietnam have been rendered inoperable due to biometric verification?

A: Almost 86 million bank accounts in Vietnam have been rendered inoperable due to biometric verification, suggesting many were created for fraudulent purposes. 

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