In a groundbreaking move set to take effect in 2026, Vietnam is making a significant change to its banking and identification systems. Passports, traditionally used as an official form of identification for local transactions, will no longer be accepted by local banks. Instead, the Vietnamese National ID will become the primary identification for banking and other domestic services.
This shift is part of Vietnam’s broader National Digital Transformation Program, which aims to streamline and modernize the country’s identity management systems. The move marks a clear step toward digital efficiency and aligns with global trends toward digital identity verification.
More Than Just a Replacement for Passports
The Vietnamese National ID will serve as a smart ID card that’s equipped with a chip, essentially a digital version of what’s commonly known as an e-ID. This new ID will replace the passport for all domestic transactions, including opening bank accounts, applying for government services, and even for medical and insurance records.
Unlike the passport, which is primarily designed for international travel, the National ID will be integrated into everyday activities.
This shift to a more digital, centralized identity will not only improve convenience for citizens but also create a more secure and efficient system for managing personal data across sectors like banking, healthcare, and government services.
Why the Shift Away From Passports in Local Transactions?
The decision to phase out the use of passports for local transactions comes as part of a broader push to modernize Vietnam’s digital infrastructure. The Vietnamese National ID is expected to streamline bureaucracy, reduce administrative bottlenecks, and improve the efficiency of public services.
By relying on the National ID, Vietnam aims to eliminate reliance on physical documents for everyday transactions, making it easier for citizens to access banking services, healthcare, education, and more.
The integration of digital IDs will help speed up processes like opening bank accounts and applying for loans, making these services more accessible and user-friendly for the general public.
The Benefits and Challenges of Digital Identity for Banking
One of the biggest advantages of this shift is the efficiency it brings to the banking system. By using a digital ID, banks will be able to verify identities instantly, making transactions faster and reducing the chances of identity fraud or errors.
This new system will also reduce the need for physical paperwork, making services more streamlined and secure.
However, there are also challenges to consider. Cybersecurity will be crucial in ensuring that the new National ID system is secure and resistant to hacking. Additionally, digital accessibility in rural areas remains a concern, as some citizens may not have easy access to the technology required to use the digital ID system.
Setting a New Standard in Southeast Asia
Vietnam’s decision to phase out the passport for local banking transactions sets it apart as a leader in digital transformation in Southeast Asia.
While other countries like Singapore and Indonesia have made strides toward digital identities, Vietnam’s rapid implementation of its National ID system demonstrates a forward-thinking approach to digital governance.
This shift is not just about convenience, it’s about creating a more secure, efficient, and modern system that aligns with the global move toward digital identity management.
The Vietnamese National ID is also in line with the country’s long-term vision to become a high-income, digitally empowered economy by 2030.
The Future of Digital Identity in Vietnam
As Vietnam moves forward with its National ID program, it’s clear that the country is redefining the way citizens interact with their government and financial systems. By transitioning away from passports for domestic use, Vietnam is embracing a future where digital identity is the norm.
This is a bold step in the digital era, one that reflects the evolving needs of a country moving toward greater efficiency, security, and global connectivity.
As other nations in Southeast Asia and around the world follow suit, Vietnam’s National ID system may serve as a model for the future of digital identification.
