Digital transformation in Vietnam encountering challenges

The establishment of the national big data and integration of databases are the most critical foundation for the national digital transformation. In this process, many obstacles have arisen, posing grave challenges to the state leaders.


To carry out digital transformation nationwide, the Government has launched its project ‘Developing an Application for Population Database, Digital Identification and Authentication for the National Digital Transformation from 2022-2025, with a Vision to 2030’ (Project 06).

The Public Security Ministry reported that until this April, over 80 million chip-based citizen ID cards were successfully issued and distributed. 26.1 million application forms for an electronic identity account were received, and 23.7 million papers were approved with 8.4 million accounts being activated.

The State Bank of Vietnam cooperated with the Public Security Ministry to use the National Population Database to complete authentication for more than 25 million out of over 51 million credit information pieces of money borrowers, 21.3 million of whom had their information identical with the data saved in the Database.

These are positive figures for the launch of Project 06. However, the weaknesses at present lie in connection limits among state agencies and the tardiness in completing the national land resources database. Since these information pieces are national assets assigned to specific agencies to manage, these organizations must urgently finish the task so that this database can be shared and used effectively in order to serve citizens and businesses. Otherwise, the expected results of digital transformation cannot be achieved.

Right now, 60 provinces and cities in the country have formed links to the National Population Database for administrative procedures. While many local authorities in Hanoi, Ho Chi Minh City, the provinces of Long An, Yen Bai, Dien Bien have taken good use of this valuable resource to bring more convenience to their dwellers, others still do not fully use it, not to mention the three provinces that have not completed their connection, namely Gia Lai, Phu Yen, and Bac Kan.

The Government Office also informed that several localities have not strictly observed the Government’s regulations and directions, leading to trouble for citizens and businesses located there. For instance, even though household registration books are expired after December 31, 2022 as stipulated in the Residence Law 2020, many state offices still request that citizens have to display proof of their residency or citizen ID number.

Obviously, besides a strong determination of the whole political system and the business community in carrying out digital transformation, the establishment and integration of national big data must be prioritized since these databases are the core of the digital transformation process and the forming of a digital government, digital society. As data are collected from citizens and businesses, they must be used effectively to serve those people at different scales, clearly showing the citizen- and business-orientation of this vital process.

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