Vietnam takes steps to build seamless digital ecosystem for foreigners

Vietnam is implementing measures to create a cohesive digital infrastructure for foreigners, aiming to optimize service quality and boost the nation's allure for investment, education, employment, and tourism. From a foreigner's standpoint, Vietnam's digital evolution encompasses not only a proliferation of online platforms and public services but also an enhanced experience in conducting daily administrative tasks.

Csaba Bundik, a former EuroCham Vietnam director who has lived in Vietnam for nearly two decades, hailed the introduction of Level-2 electronic identification for foreigners as a significant milestone for long-term residents. He explained that earlier, even mundane administrative procedures necessitated foreigners to carry passports, duplicate documents, and liaise with multiple agencies.

Unifying digital identities for public services, banking activities, rentals, and residence procedures would substantially simplify the process, saving substantial time and resources. Ollie Arci, a senior editor at an international risk consultancy with a Hanoi office, expressed admiration for Vietnam's rapid transition from paper-based management systems to digital platforms.

Key advancements include the widespread adoption of VNeID for foreigners, the proliferation of QR-code payments, and the eTax system, which enables users to monitor personal income tax information in a single platform. These developments demonstrate that digital transformation is shifting towards a more user-centric, convenient approach to service delivery.

Since the implementation of Politburo Resolution No. 57 on breakthroughs in science, technology, innovation, and national digital transformation, numerous digital transformation models have yielded positive outcomes. Project 06, in conjunction with the national population database and the VNeID application, has registered over 71 million accounts, catering to various facets of daily life.

Secure interconnection networks and shared digital platforms have largely completed 98% of their connectivity infrastructure, with several innovation models tailored to local strengths being replicated. International observers, such as GSMA’s Asia-Pacific Regional Director Julian Gorman, emphasize that Vietnam's emphasis on people is its most distinguishing attribute.

Digital inclusion is not viewed as a supplementary social concern but as a fundamental economic strategy. Developing advanced digital skills and AI capabilities is the next critical step, building upon Vietnam's existing digital foundations to achieve a successful transformation. Despite acknowledging Vietnam's achievements in digital transformation, foreigners residing in the country often believe that digitizing individual services constitutes merely the initial step.

They anticipate a fully interconnected digital ecosystem where a single electronic identity allows users to access services and conduct transactions seamlessly and securely. Bundik highlighted the e-visa system as a particularly visible reform, facilitating the planning of international visits and minimizing the need to visit embassies.

However, he stressed that the e-visa is merely a "convenient front door," and the entire system behind it must function efficiently and predictably for international investors, experts, and workers to experience the full benefits of the investment environment. Arci noted that the primary obstacle is not a shortage of digital platforms but their limited connectivity.

Currently, VNeID primarily displays basic information for foreigners and lacks convenient integration with services such as taxation, banking, residence, immigration, and driving licenses. Furthermore, the eTax interface is currently only available in Vietnamese, posing challenges for foreigners navigating the system. To optimize the digital experience for foreigners, a modern platform must offer multiple functions while ensuring seamless data connectivity between agencies.

Bundik emphasized that data incompatibility or a single database error could disrupt multiple services, potentially introducing new sources of inconvenience. Alongside cybersecurity, Vietnam should focus on enhancing data interoperability, expanding multilingual support, and providing assistance mechanisms when digital procedures encounter issues.

From a broader perspective, digital transformation not only enhances the quality of public services but also fosters innovative approaches to national governance. Senior Professor Tao Yitao of China’s Shenzhen University asserted that digital technology can address the challenges posed by an expanded administrative scope and facilitate the development of e-government and digital governance.

Vietnam can leverage its late entry into the digital realm to make significant strides in e-government and digital governance. Arci concurred that Vietnam should develop a unified digital ecosystem where electronic identification can be utilized across various services.