Digital signature service market saturated, competition stiffer
09:20, 2014/08/04
More than 348,000 out of the total 500,000 businesses operating in Vietnam now use digital signature services and declare their taxes online.
Nine digital signature service providers have been licensed since September 2009, when the Ministry of Information and Communication (MIC) began the service.
The nine providers include VDC, Bkav, FPT, Viettel, CKCA, CA2, SafeCA, SmartSign and NewTel. Of these, FPT, the largest private-run technology group, and VDC, a subsidiary of the state-owned Vietnam Post and Telecommunication Group (VNPT), scramble for the first and second positions in the market. Each of them reportedly has 80,000 customers.
According to Nguyen Hong Hai, deputy director of VDC, many of these that do their taxes online are mostly located in Hanoi, HCM City and big cities and provinces.
“The coverage of digital signature on Vietnamese enterprises is relatively large. This means the remaining part of the market for service providers to exploit is small,” said Tran The Hien, CEO of FSE FPT.
“We can only seek new customers among the businesses that still have not used the services, and newly established businesses,” he added.
Ngo Tuan Anh, vice chair of BKAV, a well known internet security solution provider, also thinks there are more digital signature service providers than needed.
“There are nine service providers to serve 500,000 businesses which need the service to make tax and customs declarations. The supply has exceeded the demand,” he said.
MIC, which has realized the oversupply, has recently refused to grant operation license to businesses.
Observers said Vietnamese businesses mostly use digital signature services to make online tax and customs declarations, and to do e-banking and stock transactions.
FPT, VDC and Bkav also provide digital certificate services to SSL websites to protect important data transmitted via internet, local networks and outer networks, or for servers to automatically sign e-transactions.
They also provide services to protect manufacturers’ software and users against risks and malware when downloading.
Anh from Bkav said the company is planning to provide services to clients to serve their declarations of social insurance and e-invoices, once insurance and taxation agencies accept e-declarations and e-invoices.
Diversifying services is the only choice for service providers to improve their revenue as there are now a limited number of customers.
Hai of VDC also puts high hopes on the development of online public administration services, saying that this would create a promising area for digital signature firms to exploit.
According to Nguyen Hong Hai, deputy director of VDC, many of these that do their taxes online are mostly located in Hanoi, HCM City and big cities and provinces.
“The coverage of digital signature on Vietnamese enterprises is relatively large. This means the remaining part of the market for service providers to exploit is small,” said Tran The Hien, CEO of FSE FPT.
“We can only seek new customers among the businesses that still have not used the services, and newly established businesses,” he added.
Ngo Tuan Anh, vice chair of BKAV, a well known internet security solution provider, also thinks there are more digital signature service providers than needed.
“There are nine service providers to serve 500,000 businesses which need the service to make tax and customs declarations. The supply has exceeded the demand,” he said.
MIC, which has realized the oversupply, has recently refused to grant operation license to businesses.
Observers said Vietnamese businesses mostly use digital signature services to make online tax and customs declarations, and to do e-banking and stock transactions.
FPT, VDC and Bkav also provide digital certificate services to SSL websites to protect important data transmitted via internet, local networks and outer networks, or for servers to automatically sign e-transactions.
They also provide services to protect manufacturers’ software and users against risks and malware when downloading.
Anh from Bkav said the company is planning to provide services to clients to serve their declarations of social insurance and e-invoices, once insurance and taxation agencies accept e-declarations and e-invoices.
Diversifying services is the only choice for service providers to improve their revenue as there are now a limited number of customers.
Hai of VDC also puts high hopes on the development of online public administration services, saying that this would create a promising area for digital signature firms to exploit.
16:50, 2025/01/09
Hanoi aims to maintain its second-highest EBI ranking
Hanoi laid out a goal to expand consumer market through e-commerce channels and promote cross-border transactions to help businesses export.
18:41, 2024/12/05
Hanoi honors outstanding faces in innovation, digital transformation
The Final Round of the Capital's Innovation and Digital Transformation Products Competition 2024 aims to honor exemplary figures in innovation and digital transformation.
16:32, 2024/11/16
Land deed digitization accelerated in Hanoi
Hanoi's digital environment has been driven by a synchronized information technology infrastructure for management in the making.
18:33, 2024/10/30
Vietnam's capital boosts iHanoi usage by citizens
Hanoi will further improve the iHanoi app by adding more features to make it more user-friendly for citizens and businesses.
22:28, 2024/10/22
Technology, innovation identified as key drivers for Hanoi's growth
Hanoi is a hub for scientific and technological cooperation among many provinces and cities in Vietnam, as well as research institutions around the world.
19:10, 2024/10/17
Hanoi intensifies efforts to achieve its digital goals by 2025
In Hanoi, digital transformation is always a top priority to support management and resolution procedures for people and businesses.