Vietnam Eyes 'Everything' Digital Identification to Bolster Digital Society Governance

Vietnam is preparing to introduce a new law that will enable the digital identification of all physical and electronic entities, extending beyond individuals and organizations to include goods, vessels, digital assets, and even events and locations. The Ministry of Public Security is leading the drafting of the 'Law on Digital Identification and Authentication,' which is currently open for public consultation until August 2. The core of the proposed legislation is to broaden the scope of identification from human subjects to encompass all entities existing in both the real and digital spaces. The proposed entities are divided into five groups: first, agencies, organizations, and individuals; second, material objects such as products, goods, equipment, and other assets; third, non-material entities including databases, data files, images, videos, applications, software, digital services, intellectual property rights, digital assets, and intangible cultural heritage; fourth, events, transactions, and behaviors; and fifth, locations and spaces. The drafters argue that identifying only humans is insufficient for a comprehensive digital society where participants in transactions and state management are increasingly diverse. This move is seen as a response to the complex and damaging realities of high-tech crime, commercial fraud, and the proliferation of counterfeit and imitation goods in cyberspace. By establishing the identity of 'everything,' the state aims to precisely manage the movement of goods, trace the origin of chemicals, and accurately pinpoint real estate locations, thereby minimizing paper-based administrative procedures. This is expected to save state budgets and curb bureaucratic corruption. The draft also proposes two models for issuing identification codes: national identification codes and self-managed identification codes. Government agencies will lead the identification of state entities, while qualified organizations and businesses will participate in providing identification services for other entities through socialization or public-private partnerships. These 'identities of everything' will be integrated into a unified ecosystem, primarily through VNeID, Vietnam's national digital identity application. VNeID will serve not only as a repository for personal information but also as a primary gateway for citizens to manage their possessions and access digital services such as social security payments and public digital signatures. The draft also establishes a temporal electronic identity tracking mechanism, crucial for combating online fraud, where all financial transactions, social media activities, and digital interactions will be logged and authenticated. The results of electronic tracking and authentication will serve as legal evidence in judicial proceedings, aiding authorities in the swift and effective detection and prosecution of crimes. The trend of expanding identification to all entities is becoming a global standard. The European Union is pioneering 'digital product passports' for product lifecycle data, which will be mandatory for exports from 2027. Estonia and South Korea require identification for assets and cryptocurrencies to control financial risks, while Singapore has developed platforms for identifying trade documents and digital assets for global connectivity.