Nov 28, 2011

Vietnam - Vietnam still facing too many difficulties with digital signature


VietNamNet Bridge – Nearly two years after the Public Certificate Authority Services (CA) were put into use, the systems have shown the lack of connectivity. Meanwhile, Vietnamese digital certificates have not been recognized in the world.


Agribank said that it is connecting customs agencies by using CA service provided by the Vietnam Post and Telecommunication Group (VNPT) – VNPT-CA. Meanwhile, the A individual, who makes transactions at the bank, is using Viettel-CA. When A needs to pay tax to customs agencies, A’s files are transferred to the bank which cannot be directly sent to the customs agency, because the customs agency now cannot verify the certificate provided by Viettel-CA.

Problems still exist

This is one of the big obstacles that hinder the application of digital signature in public administrative agencies, enterprises and among people, which could serve as the lever to create a market for service providers to develop.

To date, 5/6 enterprises have provided services, while it is expected that 12 enterprises would be licensed to operate in the market.

However, after two years of utilizing digital signature, all can see that there must be a mechanism which ensures the interaction of the services.

According to service providers, the biggest problem now is that there are not many state agencies which provide electronic public services and use public digital signatures. 

To date, the services have been mostly provided to taxation and customs agencies. However, the systems of the two sectors prove to be incompatible, which has caused big difficulties in operation. Meanwhile, businesses still have worries about the security of digital signatures, fearing that the signatures can be forged.

Especially, the legal framework still does not have necessary provisions on the issues. For example, no legal document clearly stipulates if the digital signature of businesses is equivalent to the stamp or the signature of the representative.

All that reasons explain why businesses still do not intend to use digital signatures, even though they well understand that this will help cut down expenses and shorten procedures.

According to Phung Huy Tam, Card Technology Deputy Director of Nacencomm, the most popular service package has the service maintenance fee of 1 million dong per annum and 500,000 dong for the device that makes personal digital signature on average. Most businesses use digital signature once a month to pay tax via Internet, which is really a big waste.

Meanwhile, service providers complain that the initial marketing expenses are really big, while the number of public services using digital signature remains modest. Therefore, they said they face big challenges in their investments.

The General Department of Taxation (GDT) is the first organization that utilizes digital signature in tax declaration. By October 2011, nearly 50,000 businesses had been granted digital certificates and it had received 500,000 tax declarations via Internet. 

It is expected that by 2012, the number of businesses using that service would rise to 80,000, while by 2012, at least 50 percent of businesses declare tax via Internet. The figures show the big opportunities for service providers.

Vietnamese CAs facing challenges

In 2010, Intel became the first foreign investor whose digital signature was accepted in Vietnam (the CA service provider was the US VeriSign) for making e-customs declaration. This was the first exception case in Vietnam. 

In principle, the digital signatures of foreign businesses will only be accepted when their service providers get the operation licenses in Vietnam. However, in order to create favorable conditions to the investor, the government accepted to grant a special mechanism to Intel.

The case can shows the problems of the digital signature service in Vietnam.

Meanwhile, Vietnamese CA service providers complain that they are facing many barriers, because Vietnamese digital signatures still have not been recognized in the world.

The problem is that in order to be recognized, Vietnamese service providers need to satisfy a lot of requirements, while they seem to be not ready enough for these. 


Source: SGTT



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