You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

June 30, 2021

Vietnam Updates Draft Decree Regulating E-Identification and Authentication

Subscribe to Updates

In mid-2019, the Vietnamese government approved the drafting of a Decree Regulating E-Identification and Authentication (“Draft Decree”), one of many efforts aimed at advancing the government’s plan to promote application and development of information technology. Since then, the Ministry of Information and Communication (MIC) has been accepting public comments and has been revising the Draft Decree, with the latest version dated April 29, 2021.

Expected to be promulgated in August 2021, the Decree will be the first to provide a comprehensive legal basis for managing, providing and using e-identification and authentication services in online transactions. Some notable contents are presented below.

Four Levels of E-Identification

Under the latest Draft Decree, different forms of e-identification are classified into four levels, increasing in security and reliability:

  • Level 1: Receiving digital data provided by the registrant.
  • Level 2: The same as Level 1, together with checking directly or online the suitability of personal information provided by the registrant with copies of documents issued by the authority.
  • Level 3: The same as Level 2, together with collating digital data through direct check of citizen identification card, electronic connection with citizen identification card, or connection with the national database on population.
  • Level 4: The same as Level 3, together with the registrant’s appearance in person or online in real time.

Generally, an individual may be identified by multiple e-identities, which are valid for use in different types of online transactions. However, since these transactions vary in their requirements of the level of authentication, each e-identification is valid only in transactions that require the same or lower level of authentication.

Since Level 3 and 4 e-identities are authenticated through some form of direct identification (such as the registrant’s appearance, a direct check of citizen identification card, or electronic connection with citizen identification card), according to Article 5.2 of the Draft Decree, they are qualified to be used in online transactions that otherwise require a citizen identification document by law.

Once an individual has provided an e-identification that meets the authentication level set by the transacting organization, the latter may not demand further identifying information.

Regulations for E-Identification Service Providers

In general, the provision of e-identification and authentication services is carried out based on contractual agreements between the provider and the registrant and between the provider and the transacting organization, unless specified by any other law. The provider must meet general requirements for the storage and update of e-identities, provision and management of authentication tools, and suspension and retrieval of e-identities.

Since Level 3 and 4 e-identifications are more secure and their validity is more ubiquitous than those of Level 1 and 2, providers must satisfy several heightened conditions and requirements prescribed by law to obtain the license to provide Level 3 and 4 e-identification and authentication services. Meanwhile, providers of Level 1 and 2 e-identifications are not subject to any license, they must only comply with general requirements as listed above.

Conditions and requirements imposed by the Draft Decree to obtain the license for Level 3 and 4 provision include:

  • The enterprise must be established in accordance with Vietnamese laws and must be operating in Vietnam.
  • The legal representative of the enterprise must have Vietnamese citizenship and reside in Vietnam.
  • A deposit of VND 20 billion (approximately USD 871,600) must be made in a commercial bank operating in Vietnam.
  • Specific personnel and technical requirements, management procedure requirements, etc., must be satisfied.

Among these requirements, the most notable is the deposit of VND 20 billion as a risk management and compensation mechanism in the event that the provider violates any rules leading to suspension of their license. According to the MIC, this proposed amount is estimated based on an average of 1 to 5 million accounts charged at VND 50,000 a year by each provider. The deposit would prevent risks during the dissolution or suspension of operation of the provider, and ensure the secure and reliable transfer of the e-identifications to another provider.

Related Professionals

Industries

Technology

Location

RELATED INSIGHTS​ 

February 23, 2026
On February 17, 2026, Thailand’s Personal Data Protection Committee (PDPC) released its draft Guidelines on Personal Data Protection in the Development and Use of Artificial Intelligence. The draft guidelines, which translate data controller and data processor compliance obligations under the Personal Data Protection Act (PDPA) into measures tailored to AI development and deployment, are open for public comment until February 25, 2026. At a public hearing session on the draft guidelines held on February 19, the PDPC emphasized that its approach to AI is not to hinder innovation but to develop practical guidance supporting safe deployment while ensuring data protection. Although the guidelines are not legally binding, they indicate the regulator’s expectations and the likely direction of interpretation and enforcement. Scope of Application and Role of Stakeholders The guidelines will apply to all data controllers and data processors in Thailand, and to overseas data controllers and data processors whose data processing falls within the extraterritorial scope of the PDPA. The draft guidelines distinguish the roles of parties involved in AI deployment. Users of AI who determine the purpose of use and designate the input data, and retain outputs generated by the AI, are considered data controllers. In contrast, AI model providers or system integrators that process personal data under the instructions of the data controller are generally regarded as data processors. However, if an AI model provider utilizes user data for its own purposes, such as model fine-tuning or training, it may instead be classified as a data controller. Key Obligations for AI Data Collection and Use The basic principles of data processing under the PDPA must be maintained throughout the AI implementation lifecycle, from design to decommissioning, emphasizing accountability and privacy-by-design principles. The draft guidelines also stipulate the following: Data processing agreements (DPAs) should include model training prohibitions,
Read More
February 10, 2026
Data center and cloud investments are forming a major focus of private-sector investment in Thailand, with tech giants like Amazon, Google, Microsoft, and TikTok, as well as numerous telecom and data center companies, committing significant outlays to data center and cloud development. The country’s Board of Investment (BOI) approved projects worth THB 1.87 trillion in 2025, and THB 746 billion of this was from planned data center investments—by far the largest amount from any single industry. Thailand’s swift rise as a regional data center hub is fueled by surging demand for cloud, AI, and digital services, as well as large-scale investments from global tech firms. The country’s strategic location, competitive power costs, robust fiber infrastructure, expanding IT talent, and supportive government policies—including BOI incentives and streamlined approvals—have made it an attractive destination for scalable and sustainable digital infrastructure investments. The BOI’s proactive approach in updating promoted categories and providing both tax and non-tax incentives further ensures Thailand’s continued growth in this sector. 2025 BOI Changes for Data Centers In the middle of 2025, the BOI responded to the remarkable trend by updating investment‑promotion categories across various sectors (e.g., machinery and electrical equipment, public utilities, digital and innovative industries) to accommodate growing investment in data‑center projects. Before the change, which was detailed in a notification that has applied to investment promotion applications submitted from July 1, 2025, onward, data‑center projects under BOI promotion were granted a single A1 incentive (an eight‑year corporate income‑tax exemption) and subject to one uniform set of conditions. The July 2025 notification restructured promotion for data centers into two categories based on power‑usage efficiency: high‑efficiency data centers and other data centers. Under these rules, qualified high‑efficiency data centers are eligible for an eight‑year corporate income tax (CIT) exemption, while for other data centers this exemption is
Read More
February 4, 2026
On November 18, 2025, Vietnam’s Ministry of Finance released for public consultation a draft decree on administrative sanctions in the field of crypto assets and crypto asset markets (the “Draft Decree”), intended to implement Resolution No. 05/2025/NQ-CP dated September 9, 2025, on the pilot crypto asset market in Vietnam (“Resolution 05”). While Resolution 05 sets out who may participate and under what conditions, the Draft Decree addresses a more practical question for market participants, i.e., what happens if those conditions are not met. In doing so, the Draft Decree offers important insight into how Vietnamese regulators intend to supervise, discipline, and ultimately shape the crypto market during the pilot phase. Regulatory Scope and Overall Sanctions Architecture The Draft Decree applies to both domestic and foreign organizations and individuals engaging in crypto-related activities in Vietnam’s market. Covered entities include: (i) crypto asset issuers; (ii) crypto asset service providers, including trading platforms and market operators; (iii) Vietnamese and foreign investors participating in the pilot market; and (iv) other organizations involved in the offering, issuance, or provision of crypto-related services in Vietnam. The breadth of this scope is deliberate. It appears to reflect a regulatory view that cross-border structures, offshore platforms, and indirect participation may not necessarily insulate market actors from compliance obligations once they operate within the pilot framework. For the crypto industry, this may mark a shift from regulatory ambiguity toward a more explicit articulation of jurisdictional reach. At first glance, the Draft Decree’s monetary penalties appear restrained. The maximum fine per administrative violation is capped at VND 200 million (approx. USD 7,700) for organizations and VND 100 million (approx. USD 3,800) for individuals. However, focusing solely on fine levels risks missing the point. The Draft Decree also places great regulatory weight on supplementary sanctions and corrective measures, including: (i)
Read More
January 30, 2026
Thailand’s Data Privacy Day 2026, hosted by the Office of the Personal Data Protection Committee (PDPC), underscored the country’s commitment to strengthening personal data protection, advancing regulatory maturity, and preparing organizations for the next phase of PDPA enforcement. The event marked a clear shift from policy-level compliance toward “Privacy in Action,” signaling that operational readiness and real-world implementation are now priorities. The Office of the PDPC also emphasized that data protection is now a national economic enabler that supports digital trust, competitiveness, and sustainable growth, not just a compliance obligation. The following insights summarize the key takeaways from the Data Privacy Day 2026 event. PDPA in Real Life: What Happens to Your Data Today The Office of the PDPC provided concrete data on enforcement trends and real-world compliance issues facing organizations across Thailand. Complaints and trends. The Office of the PDPC’s Personal Data Protection Act (PDPA) Center recorded 2,672 PDPA-related complaints as of January 2026, with the highest volumes involving failure to comply with the data minimization principle, collection without lawful basis, and use and disclosure without lawful basis. Administrative penalties. Several administrative penalties have been imposed on data controllers and data processors across various sectors, including government, healthcare, retail, SMEs and e-commerce, ranging from tens of thousands to several million baht. Most violations stemmed from weak security measures, failure to notify data breaches within the required timeline, absence of a data protection officer (DPO) when required, and noncompliance with governance requirements such as the Record of Processing Activities (ROPA) and data processing agreements with data processors. Case studies. The Office of the PDPC highlighted specific examples of violations: Hospitals misused personal data for purposes beyond their intended scope (e.g., using personal data collected for providing medical services to send birthday cards) Vendors compromised systems due to inadequate password
Read More