Legal regulations for licensing of electronic signature certification services

I. Demand for licensing of electronic signature certification services

In the context of rapid digital transformation, the use of electronic signature (digital signature) to authenticate and ensure the legal validity of electronic transactions has become more prevalent than ever. For organizations wishing to provide signature certification services, obtaining a license is a mandatory requirement to ensure that service provision complies with statutory regulations.

A license for providing signature certification services not only enables the organization to operate lawfully but also strengthens user confidence by ensuring that the certification services meet standards of security and information safety.

II. Legal provisions relating to licensing of electronic signature certification services

1. What is licensing of electronic signature certification services?

A licensing of electronic signature certification services is a legal document issued by a competent State authority to organizations meeting statutory conditions for conducting digital signature certification activities. At present, such a license is one of the prerequisites for organizations to operate as public digital signature certification service providers in accordance with Article 11 of Decree No. 130/2018/ND-CP.

2. Procedures for obtaining licensing of electronic signature certification services 

Step 1: Submitting an application dossier to the competent authority.

Step 2: Dossier appraisal and licensing: According to Article 15 of Decree No. 130/2018/ND-CP, dossier appraisal and licensing are conducted as follows:

• Within 50 days from the date of receipt of a valid application dossier, the Ministry of Information and Communications shall preside over and coordinate with the Ministry of Public Security, relevant ministries, and agencies in appraising the dossier and issuing the license to the enterprise if all licensing conditions are satisfied.
• In cases of refusal, the Ministry of Information and Communications shall issue a written notice clearly stating the reasons.

3. Conditions for obtaining licensing of electronic signature certification services

Pursuant to Article 13 of Decree No. 130/2018/ND-CP, the conditions for licensing public electronic signature certification service providers include:

• Legal status: The applicant must be an enterprise incorporated under Vietnamese law.
• Financial capacity: The enterprise must maintain an escrow account at a commercial bank operating in Vietnam with an amount of no less than 5 billion VND; and must pay the full service fee for maintaining the certificate status checking system (in cases of reissuance).
• Personnel: The enterprise must have personnel possessing appropriate qualifications and expertise responsible for system administration, system operation, issuance of digital certificates, and ensuring the system’s information security.
• Technical requirements: The enterprise must have technical equipment and technical plans, control procedures, and backup solutions that meet regulatory requirements.

Accordingly, the enterprise must fully satisfy all the above conditions to be granted a license for providing signature certification services.

4. Authority to issue licensing of electronic signature certification services 

Pursuant to Clause 1 Article 11 of Decree No. 130/2018/ND-CP on conditions for operating public electronic signature certification services: Possessing a license for providing public electronic signature certification services issued by the Ministry of Information and Communications. In addition, Article 15 of this Decree further provides that the Ministry of Information and Communications presides over and coordinates with relevant ministries and agencies in appraising dossiers and issuing licenses.

Thus, the authority responsible for issuing licenses for providing signature certification services is the Ministry of Information and Communications.

III. Questions concerning licensing of electronic signature certification services

1. What should be done when licensing of electronic signature certification services is about to expire?

According to Clause 3 Article 16 of Decree No. 130/2018/ND-CP: Enterprises wishing to continue providing services must submit an application for license reissuance at least 90 days before the license expiry date to ensure continuity of service.

Thus, when a license is nearing expiration, an enterprise must submit a reissuance application in accordance with the above regulation if it wishes to continue operating.

2. What sanctions apply if an organization transfers its licensing of electronic signature certification services?

Pursuant to Clause 3 Article 107 of Decree No. 15/2020/ND-CP, a fine ranging from 20,000,000 VND to 30,000,000 VND shall be imposed on acts of purchasing, transferring, or leasing a license for providing public electronic signature certification services.

In addition, improper transfer of such license may result in the supplementary sanctions of suspension of the license for a period from 01 to 03 months in accordance with Clause 7 Article 107 of Decree No. 15/2020/ND-CP.

Thus, organizations that transfer an electronic signature certification license may be subject to a fine of 20,000,000 VND to 30,000,000 VND and suspension of the license for 01 to 03 months. 

3. What is the sanction for failing to renew the license within the prescribed timeframe?

Under Point a Clause 2 Article 107 of Decree No. 15/2020/ND-CP: A fine ranging from 10,000,000 VND to 20,000,000 VND shall be imposed for failure to implement procedures for extending a public electronic signature certification service license within the prescribed timeframe.

Thus, organizations that renew the license late are subject to a fine of 10,000,000 VND to 20,000,000 VND.

4. How is the validity period of a re-issued electronic signature certification service license determined following a change in the registered head office address?

Pursuant to Clause 1, Article 16 of Decree No. 130/2018/ND-CP regarding amendments to the contents of a license: An amendment to the contents of a license shall be implemented if an enterprise changes any of the information, including its legal representative, registered head office address, or trading name. The validity period of the amended license shall be the remaining validity period of the previously issued license.

Accordingly, if an electronic signature certification service license is re-issued following a change in the enterprise's registered head office address, the validity period of the re-issued license shall be equal to the remaining validity period of the previously issued license.

5. If licensing of electronic signature certification services is temporarily suspended, may the organization continue issuing new electronic certificates to subscribers?

Pursuant to Point a, Clause 2, Article 17 of Decree No. 130/2018/ND-CP on temporary suspension of licenses and suspension of certificate issuance: Public electronic signature certification service providers must suspend the issuance of new electronic certificates to subscribers when their license is temporarily suspended.

Accordingly, an organization whose license is temporarily suspended must cease issuing new electronic certificates to subscribers.

IV. Legal advisory services concerning licensing of electronic signature certification services

The foregoing is NPLaw’s analysis of the current legal regulations governing licenses for providing signature certification services. With a team of experienced lawyers and legal specialists, NPLaw offers professional and reputable legal services to ensure optimal protection of Clients’ lawful rights and interests. Should you require legal assistance, please contact NPLaw for timely consultation and support.