Draft law seeks to create digital identities for all physical and virtual entities

The Ministry of Public Security is taking the lead in drafting a Law on Electronic Identification and Authentication that would significantly expand Vietnam’s identification framework beyond individuals and organisations to cover virtually all entities in the physical and digital worlds.

One of the draft Law on Electronic Identification and Authentication’s key proposals is to broaden the scope of identification, moving from a system focused largely on individuals and organisations towards one in which identities can be established for all entities in physical and digital environments.

These entities would be divided into the following five groups: (i) agencies, organisations and individuals; (ii) physical objects, including products, goods, equipment and other tangible assets; (iii) intangible entities such as databases, data files, images and videos; applications, software and digital services; property rights and intellectual property rights; digital assets; and intangible cultural heritage; (iv) events, transactions and acts; and (v) locations and spaces requiring identification; and (v)

Draft law seeks to create digital identities

According to the drafting agency, limiting identification to people is no longer sufficient for the operation of a comprehensively digital society, as the range of entities involved in transactions and subject to state management continues to expand. The development of hi-tech crime, commercial fraud and counterfeit and imitation goods in cyberspace has also created growing challenges and caused substantial losses.

Against that backdrop, the establishment of identities for a wider range of entities, authorities would be better able to track the movement of goods, trace the origin of chemicals and precisely identify the location of real estate. The system would also help further reduce administrative paperwork, save state budget expenditure and prevent corruption among public officials.

The draft proposes two types of identification codes: national identification codes and autonomous identification codes.

State agencies would take primary responsibility for identifying agencies, organisations and individuals; locations and spaces; entities falling within their specialised management responsibilities; high-risk goods and products; and core data or data related to state secrets, national defence and security.

Meanwhile, qualified organisations and enterprises would be permitted to provide identification services for other entities under models financed by social resources or through public-private partnership. 

Under these models, the State would invest in digital infrastructure while enterprises would manage and operate it, or enterprises could independently invest in and operate identification infrastructure.

The draft also envisages integrating the identities of different entities into a unified ecosystem through VNeID. VNeID would therefore serve not only as a platform for storing personal information but also as an official communication portal through which citizens could manage assets and other entities under their ownership, use digital services such as social security payments and public digital signatures, and receive notifications from state authorities.

Another notable proposal is the establishment of a chronological electronic identity tracking mechanism aimed at preventing online fraud.

Under the draft, financial transactions, activities on social networks and interactions between digital accounts could be tracked and authenticated through electronic identification mechanisms.

The results of electronic tracking and authentication would be recognised as a lawful source of evidence in procedural activities, helping competent authorities detect, investigate and handle offences more quickly and effectively.

-(VLLF) 

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