Australia to run audit; Vietnam’s foreign ID in full swing

Australian authorities have proposed an audit of the national digital identification system to identify loopholes and potential areas for improvement, in support of the country’s digital transformation.

According to a government memo, the Australian National Audit Office (ANAO) is leading the auditing process for the country’s digital ID system. ANAO will particularly examine the effectiveness of the digital ID implementation while exploring its design and functionality.

Furthermore, ANAO’s audit will probe the duties and functions of stakeholders across the system’s value chain. A glance at the proposal reveals an extension toward the fiscal issues with the audit examining the “allocation and expenditure” of funding.

In terms of scope, multiple reports opine that the ANAO’s audit for 2025-2026 will cover several digital ID schemes. It will also probe the Trusted Digital Identity Framework, myGovID, and the Identity Exchanges provided by Services Australia.

The latest audit proposal builds on four prior audits into the Australian government’s digital ID system. In addition, several independent reviews have been conducted to enhance the system’s role in expanding the scope of public service delivery.

“To support accountability and transparency in the Australian Government sector through the independent reporting to the Parliament, and thereby contribute to improved public sector performance,” read the memo.

The latest audit is coming on the passage of new legislation to expand the scope of the digital ID scheme to the broader economy. Under the new regulatory regime, the Department of Finance and the Australian Taxation Office (ATO) are performing critical operational functions, and there are suggestions that the audit could extend to them.

Australia has spent a fortune on its national digital identity system, with a Parliamentary Explanatory Memorandum pegging the figure at AU$781.9 million ($510.2 million) between 2016 and 2024. Despite the heavy government spending, the national digital ID system faces a raft of privacy and security risks.

Furthermore, the digital ID landscape is fragmented, with state-level systems and federally regulated systems limiting interoperability. Experts say a slow legislative process and limited private sector integration are among the factors limiting mainstream acceptance of the national digital system.

Raising the stakes with emerging technologies 

Vietnam sees spike in foreign digital ID applications

Meanwhile, in Vietnam, after the launch of a 50-day national campaign to offer digital IDs to foreigners, a new report has confirmed an influx of applications across the Southeast Asian country.

The provincial Immigration Management Department’s headquarters in Khanh Hoa is crowded with foreigners seeking level-2 digital ID accounts, prompting provincial police to collaborate with the local immigration service to streamline the process.

Earlier, Vietnamese authorities announced a 50-day campaign to onboard foreigners into the national digital ID system. Starting on July 1, the campaign will run till August 19 with several provinces setting processes in motion to drive adoption levels for foreigners in their jurisdictions.

In Khanh Hoa, two application centers have been set up to handle the large number of applicants drawn by the range of functionalities. Over 500 foreigners have applied for the level-2 digital ID, and authorities have disclosed that both centers will be open seven days a week until August 19.

“The officers here provided enthusiastic support and interpretation, helping me complete the process with ease,” said Azizskandar Bin Awang, a Malaysian national.

The level-2 ID for foreign residents offers a range of benefits beyond the traditional means of identification issued to applicants, citing access to financial services. The digital ID will house tax transactions, temporary residence declarations, and other financial operations.

A close look at the functionalities reveals that it contains a wallet for storing several identity documents. Holders will also have access to Vietnam’s range of public services via the VNeID app while streamlining future administrative processes.

Despite the functionalities, the requirement of a Vietnamese mobile number for the level-2 digital ID application presents a raft of challenges. A local news outlet reports that some applicants are turning to unverified SIM cards to complete their applications, while others are poking holes in the duration of the process.

First-time applicants will require seven days to complete their applications, while individuals with personal data in the system will receive their digital IDs within three days.

A steady push toward digital IDs 

Vietnam has taken a giant leap toward digital IDs by launching a national system in line with its broader objectives to embrace emerging technologies. In line with the central government, Ho Chi Minh City has pledged to invest a slice of its budget to improve its AI and blockchain capabilities.

Furthermore, real-world utility with next-gen technologies is soaring to unseen levels in Vietnam. Local firms are turning to blockchain to verify the authenticity of halal certificates in the food industry amid a spate of new regulations to govern technology applications.

Watch: Why using transparent ledger for digital identity ensures trust