Global Vietnam Lawyers would like to introduce our valued readers to an article by Mr. Tran Huu Tien titled “Electronic identification accounts for enterprises: What bottlenecks will FDI enterprises face?” published in The Saigon Times, No.24-2025 (1.800) on June 12, 2025.
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In less than a month, the new regulations in Decree 69/2024/ND-CP will be applied, but many FDI enterprises remain in a state of “pending” without knowing when their identification accounts will be issued. If these problems are not resolved promptly, FDI enterprises may face a series of serious challenges, directly affecting their operations and obligations to the State.
From July 1, 2025, Decree 69/2024/ND-CP on electronic identification and authentication will officially take effect, marking a major step forward in Vietnam’s digital transformation. Pursuant to Articles 7, 12 and 40.4 thereof, all enterprises established or registered to operate in Vietnam will need an electronic identification account to carry out all online administrative procedures.
This Decree is aimed at digitizing administrative processes comprehensively, from tax declaration, customs, social insurance to business registration or license application, toward optimizing and making procedures transparent. This is a strong move demonstrating the Government’s determination to build a convenient and modern business environment. However, a major challenge is present, especially for enterprises with foreign direct investment (FDI) when the legal representative is a foreigner.
Big troubles loom large when the legal representative is a foreigner
The problem arises right from the stage of registering a business identification account. Pursuant to Article 12.1 of Decree 69/2024/ND-CP, the issuance of this account requires the legal representative to use a level 2 electronic identification account. It is worth noting that the issuance of level 2 electronic identification accounts for foreigners is not currently supported by the registration system.
While Vietnamese citizens are very familiar with citizen identification and the VNeID application, for foreigners, the process of obtaining a personal identification number or linking information to the VNeID system for business purposes has not yet been implemented. As a result, many FDI enterprises, including big names in the market, are in a “dilemma”: they really want to comply with but cannot open an identification account as required by Decree 69/2024/ND-CP. This is a bottleneck in need of an urgent removal for the digital transformation process to take place smoothly and fairly for all economic sectors.
What risks do FDI enterprises face?
The time to apply Decree – July 1, 2025 – is approaching, but many FDI enterprises remain in a “waiting” state without determining the time when their identification accounts will be issued. If these problems are not unraveled promptly, FDI enterprises may face a barrage of serious challenges, directly affecting their operations and obligations to the State.
The first is the possible administrative paralysis. Most obviously, FDI enterprises will not be able to carry out necessary administrative procedures at State agencies. Many important procedures such as labor, business registration, licensing, reporting, and other legal compliance obligations have been digitized and integrated on the National Public Service Portal. The lack of an identification account will lead to delays, interruptions, and even the impossibility to implement plans and projects, directly affecting business performance. More seriously, delays in fulfilling mandatory obligations can put businesses at risk of administrative sanctions, lawsuits, or even criminal prosecution in some cases.
Next, it increases business operating costs and reduces business performance. Lack of identification accounts means that businesses cannot access the State’s online administrative procedure processing systems. This forces them to return to traditional methods, which are more time-consuming to complete documents, mobilize personnel, print documents, and travel. The consequences not only incur unnecessary costs but also significantly affect overall performance of the business.
These difficulties and challenges demand special attention from competent authorities, especially the Ministry of Public Security. It is necessary to promptly research, complete the process, issue specific and more convenient instructions on granting identification accounts to FDI enterprises. The timely removal of current “bottlenecks” not only helps FDI enterprises operate more smoothly but also clearly demonstrates Vietnam’s commitment to a transparent, modern and friendly investment environment, contributing to promoting sustainable economic development.
