Secure e-contracts pave the way for business digital transformation

At the forum, participating businesses unanimously agreed on the need to further strengthen policies related to e-contracts to address practical challenges. Issues such as high costs, complex procedures, and limited acceptance by third parties remain significant barriers.

In her opening speech, Le Hoang Oanh, director of the Vietnam E-commerce and Digital Economy Agency under the MoIT, stated that in the context of constantly changing global markets, flexibility and readiness for transformation are key to businesses' sustainable development.

"E-commerce has become and continues to be a key driver in the digital economy, with an impressive growth rate of 25 per cent in 2023, and is expected to account for 10 per cent of total retail sales in 2025. Entering into contracts in the electronic environment is also one of the crucial issues in legal regulations."

Le Hoang Oanh, director of the Vietnam E-commerce and Digital Economy Agency under the Ministry of Industry and Trade. Photo: MoIT

“The forum focused on discussing factors affecting digital transformation for business cycles, with an emphasis on contract signing, oriented towards promoting the application of secure e-contracts,” Oanh added.

As one of the pioneers in implementing digital signatures and e-contracts in Vietnam, Do Quang Yen, director of C-SUITE CMC TS Solutions Centre, CMC Technology and Solution Co Ltd., said that digital transformation is a key factor helping Vietnamese businesses develop sustainably while enhancing competitiveness. Many businesses have applied CRM, ERP, big data, and AI systems to optimise processes, enhance customer experience, and transition to online business models.

"E-contracts play the role of the final knot in the digital transformation chain, ensuring transparency and automation between participating parties, from customers and partners to internal management," Yen said.

Emphasising the role of digital signatures and identity authentication in ensuring safety and preventing fraud, Nguyen Dang Trien, representing Viettel Telecom, shared that as signing in the electronic environment becomes increasingly common, each entity must be cautious.

"Using digital signatures from licensed, reputable units will help protect customer rights. Especially when the digital signature includes both a timestamp and eKYC identification at the time of signing, both businesses and individuals participating in signing documents or contracts in the electronic environment can feel more secure than with traditional paper," Trien said.

Do Ke Cong, director of VNPT's Digital Signature and E-Contract Centre, said that since 2009, VNPT has continuously improved its services and solutions, including the VNPT e-contract platform and remote signing solution. However, VNPT acknowledges the challenges businesses face when applying e-contracts, such as costs, complex procedures, and lack of acceptance from third parties like tax authorities and treasuries.

To overcome this, VNPT offers innovative solutions, such as eliminating digital signature setup fees and providing flexible signing packages starting from just 4 US cents (VND1,000) per signature.

Businesses participating in the forum hoped that the government and relevant authorities will issue documents related to technical standards so that e-contracts can be accepted by third parties, as well as increase support and create favourable conditions for e-contracts to become a common transaction tool. This will help optimise business processes and promote transparency and safety in transactions, thereby enhancing competitiveness and ensuring sustainable development in the digital economy environment.

Since 2020, many businesses in Vietnam have applied electronic signing and authentication solutions to increase operational efficiency, including the use of tools such as electronic certification, digital signatures, eKYC, identity verification, and e-contracts. As of the end of August, over 490,000 e-contracts had been certified in Vietnam, with the participation of nearly 49,000 businesses, evidence of the positive development of this service.

Digital transformation for a more sustainable Vietnam Digital transformation and sustainable development trends continue to be closely intertwined as Vietnam gears up its efforts to shape a thriving and sustainable future.

Concerns remain over legal validity and other issues of e-contracts Following a webinar on September 18, a recent survey on the obstacles preventing enterprises in Vietnam from applying e-contracts to their businesses showed that more than half of the 500 participants were concerned about the legal validity and confidentiality of e-contracts.

Digital gains are in reach for Vietnam Foreign tech companies are stepping up collaborations to promote the likes of 5G and AI, laying the groundwork for Vietnam’s journey towards becoming a digital economy.