Vietnam Boosts Digital Transformation, Enhances Biometric Banking Security

Published Date : 7/21/2025 

Vietnam is making significant strides in digital governance and banking security, with nearly 40% of administrative procedures now completed online and the implementation of biometric verification for bank accounts. 

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, reports 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 playing a crucial role in enhancing banking security in Vietnam. 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 to how 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 are now completed online?

A: Nearly 40 percent of administrative procedures in Vietnam are now 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 target date for the digital ID rollout for foreigners in Vietnam?

A: The target date for the digital ID rollout for foreigners in Vietnam is a 50-day campaign from July 1 to August 19.

Q: What is the estimated number of fraudulent bank accounts in Vietnam?

A: Almost 86 million bank accounts in Vietnam are estimated to be fraudulent and are now inoperable.

Q: What technologies are Vietnamese banks using to enhance security?

A: Vietnamese banks are using face biometrics, fingerprints, and voice biometrics to verify user identities during financial transactions. 

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