Digital Signatures in Vietnam

Electronic signatures and digital signatures might seem like the exact same thing to you, but in the context of doing business in Vietnam, they have very different definitions. In this guide, we expound a little more on the differences between them, as well as the common providers and safety measures businesses can take to protect their interests.

Electronic Signatures vs Digital Signatures

Digital signatures are governed by Decree 130, recognizing that a document can be digitally signed in place of a ‘wet’ or physical signature if it is secure.

Electronic signatures are a general term that includes digital signatures. Digital signatures are an even more secure way of implementing electronic signatures.

What providers are accepted for electronic signatures?

Not all softwares are accepted for electronic signatures in Vietnam – specific ones, like DocuSign, are considered electronic signatures but are allowed and licensed for use in Vietnam for foreign individuals and organizations. If you wish to conduct electronic transactions with foreign partners, Docusign is an option. Ultimately, it depends on whether specific organizations choose to accept it or not – some banks, for example, still require wet-ink signatures. 

Besides DocuSign, the other 2 e-signatures accepted in Vietnam are EverSign and PandaDoc. 

What makes a digital signature legally valid?

Under Decree 130, a digital signature is legally valid if they are certified by certification authentication service providers or a certification authority. These include recognizable companies such as FPT, Viettel and VNPT as part of the 16 Public Certification Authorities licensed by the Ministry of Information and Communication.

Decree 130/2018/ND-CP is the main legal authority governing the regulation and creation of digital signatures. Decree 130 recognizes the validity of digital signatures and stipulates that a document can be digitally signed in place of a wet signature and stamp, so long as the digital signature is secured.

A digital signature is considered secure if it satisfies the following conditions: 

1. It is created while the digital certificate is valid and it is verifiable by the public key contained

2. in the digital certificate;

3. It is created using a private key corresponding to the public key contained in the digital certificate; and

4. The private key is under the exclusive control of the signer at the time of signing. 

Safeguarding business interests

Although digital and electronic signatures are becoming increasingly commonplace, businesses should exercise good sense and caution when it comes to using them. It's important to note that while digital signatures are highly secure and difficult to alter without detection, no system is entirely impervious to hacking or fraud. Therefore, continuous monitoring and updates to security protocols are necessary to stay ahead of potential threats. There should be cybersecurity measures in place to prevent outside actors with malicious intent from accessing these signatures, as well as preventive measures to prevent misuse of signatures. There should also be measures in place to make sure such documents are indelible to prevent digital alteration of signed documents.

About Polynomials

Polynomials aims to create a borderless workplace by bridging great talent with eminent companies. We operate from our headquarters in Singapore, building offshore tech teams for companies across the APAC region in Vietnam and Taiwan. Write to us at hello@polynomials.co!