Vietnam's electronic contract platform is gaining popularity due to the widespread adoption of the country's chip-based national ID cards. The Vietnam Electronic Contract Development Axis, launched in 2022, facilitates online verification, authentication, and searches for business contracts.

Managed by the Certified e-Contract Authority (CeCA) under the Ministry of Industry and Trade's Department of E-commerce and Digital Economy, the platform uses chip-based ID cards for authentication. The Ministry plans to collaborate with the Ministry of Public Security to enhance data sharing. Vietnam introduced chip-based ID cards 2021 to improve public service access, including healthcare.

The government aims to expand its digital ID system through the upcoming Law on Citizen Identification, integrating more data into the National Database on Population. This would enable citizens to access public and private services using ID cards and the National e-Identification Application (VNeID). The law, expected in October 2023, targets implementation by July 2024.

The development of e-ID is also highlighted in the draft law, using citizens' ID card data to create digital identities and corresponding e-ID accounts. The Ministry of Public Security ensures e-ID security by granting access only to authorized personnel with the data owner's consent, enhancing protection even if physical ID cards are stolen. Additionally, Vietnam started issuing chip-based biometric passports in March.

Why does it matter?

Using chip-based ID cards for online contract authentication and verification streamlines business processes, enhancing efficiency and reducing paperwork. This convenience can encourage more businesses to engage in online transactions, potentially boosting economic growth. However, concerns about privacy, data security, equitable access, and the regulatory framework must be addressed to ensure this digital transformation truly benefits all citizens.