In the competition for biometric authentication and as an important effort to clean the data, the State Bank of Vietnam (SBV) has been issued more than 86 million accounts. At the beginning of September, the closed SBV accounts were inactive or no longer active. This move is part of the Government’s project that launched back in 2022 known as Project 06.
Authorities say the move aims to prevent fraud, improve the money-making economy and meet OICD and BIS International Banking standards. With about 101 million citizens, Vietnam held about 200 million bank accounts. After verification, only 113 accounts of 73 million and 711,000 organization accounts are still active.
Understanding project 06 and digital identity
Project 06 is Vietnam’s Vietnam Stration Desigity Transformation Strategy to deliver specifically using the biometric identification of its citizens. The government launched the program in 2022 with full implementation targeted for 2025 and the vision transferred to 2030. The project focuses on developing resident data systems, electronic identification, and verification applications.
The goal of the project is to be able to integrate digital identity in public services, banking transactions and everyday transactions. Citizens can store electronic documents, verify their identity, and access government services through this system. The system includes chip-based identification cards that contain biometric data including fingerprints and facial recognition information. Vietnamese authorities designed a plan to modernize public services, reduce paperwork, and create a foundation for digital banking and transactions.
Account Activation Rate
Before launch, the country maintained nearly 200 million accounts for 101 million people. This measure shows many citizens hold multiple accounts, while others are inactive or fake. The verification process completed 86 million accounts starting on September 1, 2025.
After the cleanup, 113 accounts of about 711,000 million of the organization remained active. The debt in Vietnam’s economy reached 17.2 Quadrillion VND (about 658 billion USD) in June 2025, representing a year-on-year increase of 19%. Pham Anh Tuan, director of the Department of Payment of SBV, called the program “Data-Clear Revolution” is needed to fight the rising cybercrime.
Implementation timeline
The implementation of Vietnamese identification in Vietnam was removed from the stages of more than 9 months. The SBV began implementing mandatory biometric authentication for banking services in December 2024. On January 1, 2025, unverified accounts will face banned online payments, QR code submissions, and digital transfers. All Notified Banks in 2025 start updating their biometric information.
July 1, 2025, marked the hard deadline when corporate accounts require legal representatives to complete biometric verification. A new decree went into effect at the same time, mandating face or fingerprint scanning for transactions over 10 million VND (about 379 USD). September 1, 2025, represented the last date of enforcement in which commercial banks began to fully operate the incoming accounts that are compatible with innovation.
The government’s intentions behind the cleanup
The main purpose of the program is to prevent fraud, which aims to account for documents that are used for cash withdrawals and unauthorized withdrawals. However, the authorities show some combined goals to fight cybercrime and complete financial fraud. Vietnam recorded 659,000 cybersecurity incidents in 2024, affecting 46% of public and private institutions. The government aims to create a sustainable society through its 2021-202 national payment plan.
Digital payments will grow at an annual rate of 62% through 2024. Vietnam is seeking membership in the Economic Cooperation Organization (ECIS) in 2020. Financial systems that already have good skills in Vietnam. Cleaning also supports the stricter know your customer requirements (KYC) that financial institutions must use.
Context of cybercrime in Vietnam
By 2024, Vietnam recorded more than 659,000 cybersecurity cases, with 46% affecting private and public institutions. Ransomware attacks caused USD 11 million in losses, while hackers encrypted 10 terabytes. The data breach exposed 14.5 million accounts. These mature accounts include personal information and company documents that have been sold through dark web synchronization.
The banking sector bore the brunt of these cyberattacks, with 71 percent of attacks targeting financial institutions. Scams created 18.9 trillion vnd (about 760 million million) in the car of Vietnamese users in 2024. Money scams and fraudulent activities have increased dramatically, with fake websites using unauthorized identities rising in about 1,200 locations. Cybercriminals have been given artificial intelligence to narrow down phishing emails and malicious fake websites.
Impact on foreign residents
Under the new banking and vietnam laws of Vietnam has made it controversial for foreigners to hold Vietnamese bank accounts. Expatriates and foreign residents must complete personal verification at bank branches because they do not have Vietnam-based ID cards. Banks do not offer remote verification options for international customers. Many expats who leave Vietnam find their accounts frozen without the ability to earn money remotely.
One Reddit user reported needing to fly back to Vietnam to prevent his HSBC account from being closed. International customers with expired visas or expired visas face a charge on an account that is not subject to government regulations. Accounts opened with outdated visa information, outdated addresses, or active local phone numbers trigger security flags. Bank employees guide foreign visitors through biometric registration at physical counters, storing data for future transactions. The lack of remote solutions created previous obstacles for residents, long-term travelers, and migrants to maintain Vietnamese bank accounts.
Regional comparison and global context
Vietnam is not the first country in the region to exploit this breach and it is part of a trend to strengthen digital currency security measures. Thailand is logging nearly three million accounts by September 2025 as part of the Anti-Scam Campaign Tarwar. The Bank of Thailand imposed daily transfer limits ranging from 50,000 to 200,000 Baht, which affected legitimate users and businesses. Thai authorities have estimated 6 billion Baht (188 million USD) in fraud losses in the second quarter of 2025 alone.
In 2018, India’s Aadhaar biometric database had a security breach affecting 1.1 registered citizens. Personal data including names, addresses, biometric information was available for purchase on whatsapp for less than 500 rupees (7 USD). Canada Froze Bank and Cryptocurrency Accounts During 2022 Truck Protests Using Emergency Power.
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Criticism and privacy concerns
Critics of biometric technology warn that it may overstep the boundaries of privacy, providing personal information to financial critics who describe biometric requirements as forcing the harvesting of data for surveillance purposes. Bitcoin advocates argue the shutdown highlights the vulnerability of traditional banking systems to government regulation.
Users do not have access to their funds when centralized accounts are activated, regardless of the legitimacy of their holdings. Mandatory biometric integration types financial access directly to your identity, focusing on government card management. Technical failures, human errors, or policy changes can quickly limit transaction capabilities. Foreign citizens report active attraction channels, which require physical presence to resolve frozen accounts. Rural and elderly users with limited access and understanding of technology and new systems are at risk of not being able to access their money. Some observers compare the approach of Vietnam to surveillance organizations, linking it to publications that argue against digital identity systems in the United States and the European Union. The lack of extended grace periods beyond the initial limits is left to account holders to meet compliance requirements.
Measuring security and access to finance
SBV maintains that restricted accounts are part of the clearing rather than clean. They insist that the money is still available but only with personal verification. The authorities emphasize that the most affected accounts were unlimited “Ghost” accounts, fraudulent bots, or belonging to people who left Vietnam. The government is tolerating biometric authentication as reducing financial crime and building trust in digital banking.
By End-2025, Vietnam expects 100% biometric coverage of active accounts. The country’s push for a Cashless Society aligns with broader digital transformation goals and OECD membership ambitions. However, obesity creates real barriers to the vulnerability of people and places in other countries that cannot complete verification processes.
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