LEGAL UPDATE: ELECTRONIC IDENTIFICATION – A MANDATORY STEP FOR BUSINESSES BEFORE JULY 1, 2025

Starting from July 1, 2025, under Clause 4, Article 40 of Decree No. 69/2024/ND-CP, business accounts previously registered on the National Business Registration Portal and ministerial/provincial administrative procedure resolution systems will no longer be valid. Instead, businesses are required to use organizational electronic identification accounts via the VNeID application to carry out online administrative procedures.

This marks a significant step in Vietnam’s digital transformation, enabling more secure identity verification, better data protection, and streamlined communication between businesses and state authorities.

1.Who needs to carry out an Electronic Identification

All agencies and organizations established or operating in Vietnam - including both domestic enterprises and foreign - invested enterprises (FDIs) - must obtain an organizational electronic identification (eID) account through the VNeID app. This applies regardless of business type or scale.

2.Procedures for Registering an Organizational eID Account

Pursuant to Article 12 of Decree No. 69/2024/ND-CP, businesses must follow these steps:

Step 1: Submit Registration Request

The enterprise’s legal representative (or an authorized individual) logs into the VNeID app using their Level 2 personal eID account, provides the required information, and submits a request to register an organizational eID account.

Alternatively, businesses may submit a physical application at the Electronic Identification Management Authority or Citizen Identification Authority, using the official request form as prescribed.

Step 2: Information Verification

The competent authority will verify the enterprise’s information using national databases such as the National Business Registration Database and other sector-specific systems. If the information is incomplete or missing, additional verification will be conducted.

Step 3: Receive Registration Results

Upon successful verification, the registration result will be sent to the legal representative via the VNeID app, SMS, or email.

If the application is rejected, the reason will be provided in writing or through digital communication channels.

3.Common Challenges and Practical Solutions

Many enterprises - especially FDIs - have encountered difficulties when registering for organizational eID accounts. Below are the common issues and suggested solutions:

• Legal representative is a foreign national: Foreign individuals must appear in person at an Vietnam Immigration Department or Immigration Office to complete Level 2 eID verification, which can be time-consuming and inconvenient. Businesses should assist foreign legal representatives with documentation and procedural guidance to expedite the process.

• Legal representative lacks Level 2 personal eID: This is not limited to foreign nationals; many Vietnamese legal representatives have not yet upgraded their personal eID to Level 2. Businesses should ensure this prerequisite is met before attempting to register an organizational account.

• Mismatched information across government databases: A frequent cause of rejection is discrepancy between the enterprise's submitted information and government databases, such as the National Business Registration System, Tax Authority databases, or sector-specific registries. This often occurs when business registration informations have changed but have not been properly updated in all relevant systems.

To avoid delays:

• Carefully review all legal and business information before submitting.

• If discrepancies are found, promptly submit update requests to the relevant authority (e.g., District Tax Department for tax registration informations, Department of Finance for business registration).

To ensure uninterrupted access to online public services and compliance with legal requirements by July 1, 2025, businesses should begin the eID registration process as soon as possible. Early preparation helps avoid technical delays and enhances efficiency in digital interactions with government agencies.

4.How ALTAS Can Assist You:

ALTAS LAW is uniquely positioned to assist your business in navigating these complex administrative reforms. We offer a comprehensive suite of legal and business services designed to provide seamless support during this transition period:

• Accounting and Tax Services: We also offer accounting and tax services to help your business manage the financial implications of these reforms, including tax planning, reporting, and compliance.

• Licensing & Regulatory Compliance: We will meticulously review your existing licenses and permits, advise on necessary amendments or renewals, and guide you through the process of obtaining any new approvals. Our team will also ensure your compliance with all relevant regulatory changes.

Please feel free to reach us via email contact@altas.vn to discuss your specific concerns and explore how we can partner with you to navigate these reforms successfully.

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Written by: Mr. Luong Van Chuong (Chris) – Partner Lawyer at ALTAS Law & Senior Legal Assistant Dang Thi Ngoc Lan - ALTAS Law 

Date: 10.06.2025