Vietnam Mandates Facial Recognition for Mobile SIMs from April 15 to Combat Spam

Overview

Circular 08/2026 from the Ministry of Science and Technology, effective April 15, mandates facial recognition authentication for all mobile subscribers in Vietnam to combat spam SIMs and fraud. Subscribers who fail to comply face service suspension and eventual contract termination. This regulatory change directly impacts telecommunications operators, including listed entities VNPT, CMG, and SBT, requiring immediate operational adjustments.

Key Facts

• Circular 08/2026 from the Ministry of Science and Technology takes effect on April 15, 2026.
• New mobile registrations require facial biometric authentication; existing subscribers must verify if registered with 9-digit ID cards within 60 days.
• Subscribers changing devices have 2 hours before outgoing calls/SMS are blocked, then 30 days to complete facial authentication before two-way suspension.
• After 5 days of two-way suspension without verification, telecom operators must terminate the contract and reclaim the number.
• Subscribers using VNeID Level 2 accounts or chip-based citizen ID cards are exempt from re-authentication.
• Full-scale verification begins April 15; mandatory updates for device changes apply from June 15.
• Foreign subscribers must complete re-authentication within 60 days of the circular’s effective date.

What Happened

The Ministry of Science and Technology issued Circular 08/2026, which mandates facial recognition authentication for all mobile phone subscribers in Vietnam. According to the circular, effective April 15, 2026, new mobile subscriptions must include facial biometric data as part of a four-core information set: personal identification number, full name, date of birth, and biometric data (facial image). Existing subscribers registered with 9-digit ID cards have 60 days from the effective date to add facial authentication or risk service suspension and eventual contract termination.

The regulation includes strict controls for device changes. When a subscriber moves a SIM to a new phone, telecom operators have up to 2 hours to detect the change and block outgoing calls and SMS. The system then notifies the subscriber to complete facial authentication on the new device. From the point of one-way blocking, subscribers have 30 days to authenticate before two-way service suspension. If no authentication occurs within the next 5 days, operators must terminate the contract and reclaim the number. The ministry states the policy aims to eradicate spam SIMs, protect personal data, and prevent online fraud.

Market Context

This regulatory announcement affects telecommunications stocks listed on Vietnamese exchanges, including VNPT (HOSE), CMG (HOSE), and SBT (HOSE). The policy introduces immediate compliance costs and potential subscriber churn during the verification period, which could pressure near-term operational metrics. While the ticker VNM (Vietnam Dairy Products JSC) was included in the initial query, it is not directly impacted as a food producer; the relevant entities are the telecom operators. Market reaction may focus on the increased administrative burden and technology investment required to implement the facial recognition systems at scale.

Strategic Significance

For long-term investors in Vietnamese telecoms, this regulation reinforces a tightening regulatory environment aimed at improving digital security and reducing fraudulent activities. Operators that efficiently manage the customer verification process may gain regulatory goodwill and potentially reduce costs associated with spam-related network issues. However, the mandatory verification could temporarily depress subscriber growth or increase churn if customers resist the new requirements, impacting quarterly subscriber addition figures and average revenue per user (ARPU) stability in the short term.

What to Watch

• Q2 2026 earnings reports from VNPT, CMG, and SBT for disclosures on implementation costs and subscriber impact.
• Monthly subscriber data releases from telecom operators to monitor churn rates during the April-June verification period.
• Regulatory updates or extensions to the April 15 and June 15 deadlines from the Ministry of Science and Technology.
• Announcements of technology partnerships or system upgrades by operators to facilitate the facial authentication process.
• Customer feedback and adoption rates of the VNeID Level 2 system, which offers an exemption from re-authentication.