Vietnam’s digital growth threatened by scams: GSMA Digital Summit

Vietnam is one of the world’s fastest growing economies and the country’s leadership has emphasized the digital economy as a growth driver. But this digital transformation is under threat.

At the GSMA Digital Summit Hanoi, government and industry leaders convened with a hot topic the growing dangers posed by nefarious actors. In Vietnam 74 percent of consumers now use digital wallets with commerce being facilitated by smartphones, the Internet, and digital technologies.

But there is also a surge in scams, which can erode consumer trust, with the majority of consumers fearing account hacking and the misuse of personal data online. “Vietnam stands at a defining moment in its digital journey,” said GSMA’s Head of Asia Pacific Julian Gorman.

Gorman noted that high mobile adoption coupled with the “flourishing” e-wallet market has enabled economic growth and financial inclusion in the Southeast Asian country. However, rising scams and identity threats are “putting consumer trust at risk.” But far from just discussing the problems being faced, solutions were also presented.

Such ways to combat the rising tide of digital fraud include real-time verification for transactions, multi-factor authentication and biometrics, OTP solutions, and greater collaboration between telcos, banks and fintech companies. The broader challenge though requires broader efforts, as other speakers emphasized, which could include better fraud monitoring and public education campaigns.

For instance, Vietnam experiences a large amount of SIM-swap fraud, and it’s a top concern for Vietnamese consumers, but API-driven security tools, such as those enabled by the GSMA Open Gateway Initiative, can be used to tackle the problem if it’s integrated effectively.

In other news, the country recently set a deadline for implementing biometric technology and VNeID at all airports, seaports and border gates for the second quarter of 2025.

The country’s National Digital Transformation Programme is an ambitious one, with the aim of placing Vietnam among the world’s top 30 digital nations by 2030 by installing nationwide 5G and fibre access, developing more than 100,000 digital technology businesses and upskilling hundreds of thousands of people in digital technologies.

Foreigners to be issued VNeID accounts

During the ‘Connecting VNeID Safely and Conveniently’ seminar, Major Tran Duy Hien, deputy head of the National Population Data Center, shared some news that’s pertinent to the country’s foreign residents.

From the beginning of July Vietnam will start issuing digital ID accounts to foreigners, the Major said, as reported by a local publication. “This is part of building a secure, people-centered digital ecosystem,” he said.

The Major also revealed that more than 62 million digital ID accounts have been issued to Vietnamese citizens, with daily usage now three to four times higher than in 2023. Meanwhile, more than 292 million accounts have been created for organizations. The country’s National Population Data Center has connected with 12 major banks, giving them the ability to request ID verification via VNeID.

Citizens will need to approve any data sharing requests before information is accessed. Tran emphasized that VNeID prioritizes five critical pillars, with those being data integrity, cybersecurity, digital infrastructure, legal frameworks and human resources.

Article Topics

biometrics  |  digital economy  |  digital ID  |  digital identity  |  digital wallets  |  GSMA  |  identity verification  |  Vietnam  |  VNeID