In Vietnam, online business is thriving, but tech infrastructure is not yet fit to meet the challenge, leaving the country in an escalating battle against cyber crime. But with Chinese hackers often blamed for cyberattacks, its issues are indicative of wider tensions across the APAC region.
With the 12th largest internet user population globally, Vietnam has witnessed its cybersecurity vulnerability increase exponentially in recent years.
There were nearly 14,000 cyberattacks in Vietnam in 2023, a year-on-year increase of 9.5%. Perhaps most worryingly, there were hundreds of Vietnamese government offices targeted, sparking fears over attacks on classified and politically sensitive information.
The trend continued into 2024 — the Vietnamese government has recorded more than 20 million cyberattack alerts between January and March last year, 33% more than in the same period of 2023.
Phishing is the most popular cybercrime in the country, representing nearly a third of all attacks. However, 27.4% of the attacks targeted vulnerabilities in platforms and programs installed on computers and servers, while 25.3% targeted business websites.
The issue extends beyond Southeast Asia and is indicative of tensions throughout the continent, with cyber crimes in Vietnam often attributed to Chinese hackers, causing concerns for national security and regional stability.
Viet Dung Trinh, a researcher at the University of Queensland, says that cyberattacks on Vietnam may impact regional stability because they can reveal national secrets and other confidential information. “Collective action between regional countries is hoped to enhance skills and accumulate experiences for staff in addressing cyber issues. However, the current collective actions mostly just aims to share cyber information and improve cyber capabilities,” says Trinh.
WHY VIETNAM?
“Vietnam has become a target for numerous cyberattacks, especially those from China because Vietnam has a complicated relationship with China,” says Trinh.
“The country has therefore tried to expand its diplomatic, defence and economic relations with other like-minded partners like the US, Japan, Australia and India, which have diverging interests with China.”
He says that China-based hackers often attack Vietnam’s cyber infrastructure to either get confidential information related to economic, diplomatic and defence co-operation between Vietnam and other states, or to destroy or damage communication networks between agencies inside the country.
“It is clear that China wants to know whether other states, especially its neighbours, plan to oppose it. Understanding the intentions of other regional countries has been one of the important aims in China’s offensive cyber warfare,” says Trinh.
“Digital transformation initiatives in Vietnam inadvertently create opportunities for cyber criminals to exploit online banking and transactions”
Duc Anh Tran, an associate at Tilleke & Gibbins, explains that Vietnam’s thriving economy has attracted lots of foreign business and investment, creating a fertile ground for criminals to exploit.
“There are thousands of online transactions that support the operations of these businesses and investments every day, while the technical infrastructure is still developing,” Tran says.
“This leaves room for criminals to exploit these information channels, leading to fraud and other illicit activities.
“Digital transformation initiatives in Vietnam inadvertently create opportunities for cyber criminals to exploit online banking and transactions. Online payment has become easier and more popular than ever, allowing criminals to exploit such methods.”
FIGHTING BACK
“Vietnamese banks have recently imposed stricter rules on online payments,” Tran says. “Now, transactions exceeding VND 10 million (US$400) via online platforms must be authenticated using the account owner’s Face ID.”
He adds that the government continually updates cyber fraud prevention tactics and provides instructions on how to manage the threat.
One example was a handbook on how to identify and prevent cyber fraud issued by the Ministry of Information and Communication in June 2023, which has proved to be an efficient tool in the battle against cyber criminals.
Tran also outlines how citizens can report cybercrime via VneID, a mobile application developed by the Ministry of Public Security.
“Vietnamese banks have recently imposed stricter rules on online payments”
“Vietnam has passed a few laws related to cybersecurity and established cyber agencies under the Ministry of National Defence and Ministry of Public Security,” he says.
“Vietnam also developed its own 5G network to avoid further Chinese influence on cybersecurity in Vietnam. However, individuals, and even businesses, often have a subjective mindset and are not fully aware of online fraud schemes.”
The main legislation sanctioning cyber fraud in Vietnam is the 2015 Criminal Code, he adds. “In addition, there are other relevant regulations, such as the 2015 Cyber Information Security Law and the 2018 Cybersecurity Law and its guiding regulations.”
Vietnam’s economy is forecast to grow 6.1% in 2024, and 6.5% in both 2025 and 2026, up from 5% last year, according to the World Bank Group. While this growth is a positive for the country and its ability to build better cyber protections, it also suggests that the country will continue to be a profitable target for cyber criminals in Asia and beyond.
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