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The National Electronic Authentication Centre (NEAC), Ministry of Information and Communication (MIC), Vietnam Banks Association and the Certificate Authority and Digital Transaction Club (VCDC), convened to deliberate on the role of personal digital signatures in the realm of online payments.
MIC’s Deputy Minister Nguyen Huy Dung explained that Vietnam recognises three fundamental pillars for its national digital transformation: digital government, digital economy, and digital society. The successful realisation of these three pillars is contingent on the development of digital citizens. He underscored the essential characteristics required for supporting digital citizens and a digital society. Specifically, every household should be equipped with fibre-optic broadband, and each citizen should own a smartphone, an electronic identification (e-ID), a digital payment account, an online public service account, and basic information security software.
Moreover, Deputy Minister Dung highlighted that digital citizens must possess fundamental digital skills to fully access all the public services within the digital landscape. They should have personal digital signatures to authorise digital transactions. According to him, a personal digital signature is the final “piece of the puzzle” to complete a basic version of digital citizenship in the cyber environment.
Digital signatures represent a viable solution for online transactions, particularly within the realms of finance and e-banking. Their legal validity has been acknowledged by several countries worldwide, including Vietnam. Dung noted that the Law on Electronic Transaction 2023, which includes provisions for and regulations on digital signatures, will take effect from July next year and will streamline the adoption and use of them in the digital landscape.
Nguyen Quoc Hung, the Vice Chairman and General Secretary of the Vietnam Banks Association pointed out that in Vietnam, digital signatures are mainly used in intra-bank transactions or for business-related transactions and have not yet been applied to individual customers. It’s worth noting that individual customers carry out most transactions in the banking industry.
Reports from banks in Vietnam indicate that merely 5% of their total customer base owns and actively uses digital signatures. This low adoption rate can be largely attributed to the high cost associated with obtaining personal digital signatures, Hung noted.
To foster the development of digital signatures, service providers must prioritise bolstering safety and security measures in online payments and bank card transactions. Additionally, there is a need to encourage and facilitate online payments, transitioning all direct payment processes into the digital realm. Furthermore, increased communication and awareness-raising efforts regarding the forthcoming Law on Electronic Transactions 2023 are also required.
The government has ambitious plans to promote non-cash payment methods in the country. Recently, the Ministry of Industry and Trade (MoIT) announced that by 2025, it aims to boost the cashless payment ratio in e-commerce by 50%, particularly focusing on e-payments facilitated by payment intermediaries or apps. It will research and develop a safe, secure payment system for e-commerce activities based on the commercial arbitration (ESCROW) approach. This aims to safeguard the interests of both consumers and sellers involved in non-cash payment transactions.
As OpenGov Asia reported, it will also focus on enhancing reliability to foster more secure transactions, establishing a clear legal foundation to resolve disputes, and ensuring the protection of the interests of both buyers and sellers.
