Vietnam’s Ambitious Digital Transformation: All Business Procedures Online by 2025
Vietnam is embarking on a sweeping digital transformation of its public administration, aiming to move all business-related administrative procedures online by the end of 2025. This bold initiative, driven by government directives and a series of legal reforms, seeks to streamline bureaucracy, cut costs, and foster a more transparent, efficient, and business-friendly environment. The transition is not just a technological upgrade—it represents a fundamental rethinking of how the state interacts with businesses and citizens in the digital age.
What Is Changing? The Scope and Scale of the Reform
At the heart of the reform is the government’s commitment to ensure that 100% of administrative procedures related to businesses are conducted online, regardless of administrative boundaries. This means that whether a business is based in Hanoi, Ho Chi Minh City, or a remote province, it will be able to access and complete all required procedures through a unified digital platform. The move is part of a broader program to simplify and modernize Vietnam’s administrative processes for 2025-2026, with the following key targets:
- Eliminate at least 30% of unnecessary business and investment conditions
- Reduce the processing time for administrative procedures by at least 30%
- Cut compliance costs for businesses by 30%
- Ensure all procedures are independent of provincial or local administrative boundaries
These goals are enshrined in government resolutions and directives, with ministries, agencies, and localities required to review, update, and publish all administrative procedures on the National Database on Administrative Procedures by June 2025. The reform also mandates the abolition of outdated practices, such as the so-called “ask-give” mechanism, and a shift towards post-inspection rather than pre-approval for most business activities.
Why Now? The Drivers Behind the Digital Push
Vietnam’s rapid economic growth, increasing foreign investment, and the rise of its digital economy have created both opportunities and challenges. The government recognizes that cumbersome administrative procedures, excessive paperwork, and inconsistent regulations can stifle innovation and deter investment. By digitizing and simplifying these processes, Vietnam aims to:
- Enhance the ease of doing business
- Attract more foreign and domestic investment
- Promote transparency and reduce opportunities for corruption
- Support the country’s broader digital transformation and e-government goals
Prime Minister Pham Minh Chinh has repeatedly emphasized the need for administrative reform as a cornerstone of Vietnam’s development strategy. At a recent press conference, he called for the integration of automation, artificial intelligence, and big data into public administration, particularly in areas such as business registration, taxation, customs, and land management.
The National Public Service Portal: Vietnam’s Digital Gateway
Central to the reform is the National Public Service Portal, which is being upgraded into a unified, “one-stop-shop” digital platform for all online public services. By July 1, 2025, provincial public service portals will be deactivated, and ministerial-level portals will be phased out by early 2026. The National Public Service Portal will be fully integrated with the administrative systems of all ministries, agencies, and localities, allowing businesses and citizens to:
- Submit applications online from anywhere, using computers, tablets, or smartphones
- Track the status of their applications in real time
- Receive results and feedback digitally
- Access a transparent record of all procedures and requirements
Nguyen Duy Hoang, Director General of the Administrative Procedure Control Agency, explained that the portal will not alter the authority of ministries or localities in handling procedures, but will make the entire process more transparent and subject to public monitoring. This is expected to significantly reduce opportunities for bureaucratic delays and informal payments.
How Will It Work? The Role of e-ID and Digital Verification
A critical component of the new system is the mandatory use of electronic identity (e-ID) accounts for all businesses and individuals conducting administrative procedures. Starting July 1, 2025, every company operating in Vietnam must register for a company e-ID account via the VNeID platform, managed by the Ministry of Public Security. This digital identity will be used to verify the organization’s identity in all online transactions with government agencies.
To register, a company’s legal representative must hold a Level 2 e-ID account. The process can be completed online through the VNeID app or in person at the relevant authority. Once approved, the e-ID must be activated within seven days. For foreign companies, the process requires additional documentation, and there are ongoing discussions about technical barriers for foreign legal representatives, as current regulations do not allow foreign nationals to obtain Level 2 e-ID accounts. The business community has requested a delay in implementation for such cases until these issues are resolved.
Key Benefits: Efficiency, Transparency, and Cost Savings
The government’s digital transformation program is designed to deliver tangible benefits for businesses and the broader economy. Among the most significant advantages are:
- Reduced Processing Times: By digitizing and automating procedures, the time required to complete administrative tasks is expected to drop by at least 30% in 2025, with a target of 50% reduction by 2026 compared to 2024.
- Lower Compliance Costs: Businesses will spend less on paperwork, travel, and administrative fees, with compliance costs projected to fall by 30% in the first year of full implementation.
- Greater Transparency: The digital platform will provide real-time tracking and public disclosure of procedures, reducing opportunities for corruption and arbitrary decision-making.
- Seamless Access: Businesses can complete procedures from anywhere, without being limited by local administrative boundaries or office hours.
- Data Reuse and Integration: Information and documents will only need to be submitted once, with data shared across government agencies to avoid duplication and streamline processes.
These reforms are particularly impactful in high-frequency areas such as tax administration, where over 87% of submissions were already made online in 2024. The tax sector, for example, has committed to further digitize its 219 procedures, with a focus on one-time declarations and integrated data systems.
Expert and Official Perspectives
Government officials and experts have highlighted the importance of these reforms for Vietnam’s competitiveness. Dang Ngoc Minh, Deputy Director of the Tax Department, stated:
“Administrative reform is not only an inevitable requirement but also an urgent necessity in practice. It fosters a favourable investment and business environment and supports economic recovery and development.”
Prime Minister Pham Minh Chinh has also underscored the need to eliminate unnecessary state intervention and shift towards a model based on public disclosure and post-inspection, except where international norms require formal authorization. He has called for monthly progress reports from ministries and localities to ensure accountability and timely implementation.
Challenges and Concerns: Implementation, Inclusivity, and Technical Barriers
While the digital transformation promises significant benefits, it also presents challenges. The transition requires substantial investment in digital infrastructure, training for both government officials and businesses, and robust cybersecurity measures to protect sensitive data. Some of the key concerns include:
- Technical Readiness: Not all localities or businesses may be equally prepared for the shift to fully online procedures, especially in rural or less developed areas.
- Inclusivity: Ensuring that small businesses, foreign companies, and individuals without advanced digital skills can access and benefit from the new system is a priority. The issue of e-ID registration for foreign legal representatives remains unresolved.
- Change Management: The move requires a cultural shift within the public sector, with officials needing to adapt to new workflows, performance metrics, and accountability standards.
- Legal and Regulatory Alignment: The government has issued 28 decrees and 58 circulars to clarify decentralization and standardize procedures, but ongoing legal updates and coordination are necessary to ensure smooth implementation.
To address these challenges, the government is providing support and guidance to ministries, agencies, and businesses, including legal services for e-ID registration and technical assistance for digital adoption. Feedback mechanisms and satisfaction surveys are being used to refine procedures and address user concerns.
Broader Implications: Vietnam’s Place in the Digital Economy
Vietnam’s administrative reform is part of a larger strategy to position the country as a leader in digital government and the digital economy in Southeast Asia. The country has already made significant progress, climbing 15 places to rank 71st out of 193 countries in the United Nations’ e-government development index. The digital economy now accounts for over 18% of GDP, growing at more than 20% per year—three times faster than overall GDP growth.
Major global technology companies, such as Marvell, NVIDIA, and SK Hynix, are expanding their presence in Vietnam, attracted by the country’s improving business environment and digital infrastructure. The government’s focus on science, technology, and innovation is seen as a strategic choice for sustainable development in the digital era.
What’s Next? The Roadmap to 2025 and Beyond
The next 18 months are critical for the success of Vietnam’s digital transformation. Key milestones include:
- June 2025: All administrative procedures and business conditions must be updated and published on the National Database
- July 1, 2025: Provincial public service portals deactivated; mandatory e-ID registration for all businesses
- End of 2025: 100% of business-related administrative procedures conducted online
- Early 2026: Ministerial-level portals phased out; full integration of the National Public Service Portal
- 2026: Target of 50% reduction in processing time and compliance costs compared to 2024
Ministries, agencies, and localities are required to report monthly on their progress, with the Government Office monitoring implementation and addressing any issues that arise. The reform is expected to be a model for other sectors and countries seeking to modernize public administration in the digital age.
In Summary
- Vietnam is moving all business-related administrative procedures online by the end of 2025, aiming for greater efficiency, transparency, and cost savings.
- The reform includes mandatory e-ID registration for all businesses, integration of procedures into a single National Public Service Portal, and the elimination of unnecessary business conditions.
- Key targets are a 30% reduction in processing time and compliance costs in 2025, rising to 50% by 2026.
- The transition presents challenges, including technical readiness, inclusivity, and legal alignment, but the government is providing support and monitoring progress closely.
- The reform is part of Vietnam’s broader strategy to become a digital leader in Southeast Asia, with significant implications for investment, innovation, and economic growth.
